Reply
Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

CFPB Weighs In on CRA Dispute Process

Sep 4 2013

CFPB Puts Companies on Notice About Duty to Investigate Consumer Credit Report Disputes

Bulletin Highlights Expectations for Companies that Supply Information for Credit Reports

WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (CFPB) put on notice companies that supply information to consumer reporting companies. The CFPB released a bulletin stressing that, under the law, these companies, called furnishers, are responsible for investigating consumer disputes forwarded by the consumer reporting companies. Furnishers are also responsible for reviewing all relevant information provided with the disputes, including documents submitted by consumers.

“Credit reports play a critical role in the lives of consumers,” said CFPB Director Richard Cordray. “Given the importance of these reports, consumers need to know that their documents are being reviewed when they dispute what they believe is a mistake on a report. Today’s bulletin helps ensure that the right people will be doing just that.”

Consumers may file a dispute with a consumer reporting company about an item on their credit report. If they do, the consumer reporting company ordinarily must inform the furnisher that the consumer has filed a dispute. The consumer reporting company is also required to forward all relevant information it has about the dispute to the furnisher. Once the furnisher receives the information, it must review it, conduct an investigation, and respond to the consumer reporting company.

An electronic system, known as “e-OSCAR,” is used by the three largest nationwide consumer reporting companies – Equifax Information Services LLC, TransUnion LLC, and Experian Information Solutions, Inc. nationwide – to send information relating to consumer disputes to furnishers. In a December 2012 report, the CFPB highlighted the fact that the “e-OSCAR” system did not provide a means for credit reporting companies to forward to furnishers any documents submitted by consumers.

Since then, the CFPB has been working to ensure that the dispute system was improved. The “e-OSCAR” system has been upgraded so that the three companies can now send furnishers any relevant dispute documents mailed in by consumers. The CFPB is continuing to work to see that the capacity of the system is expanded further in the near future.

Today’s bulletin details the Bureau’s expectations of how furnishers should comply with the requirements of the Fair Credit Reporting Act, particularly with respect to investigations of consumer disputes they receive from consumer reporting companies. The bulletin specifically addresses furnishers’ obligation to review all relevant dispute information provided by the consumer reporting companies.

The CFPB expects each furnisher to fulfill its legal obligations by:

  • Receiving information and investigating      disputes: When a      consumer files a dispute about a credit report item, companies need to be      able to receive information about the dispute and must investigate the      consumer’s concerns.
  • Providing investigation results: Furnishers must report the results of the      investigation to the consumer reporting company that sent the dispute      originally.
  • Correcting inaccurate information: Furnishers are required to report the results      of the investigation to nationwide consumer reporting companies if those      companies may have received inaccurate or incomplete credit information.      Furnishers also have to modify, delete, or permanently block disputed      information that is incomplete, inaccurate, or cannot be verified.

If the CFPB determines that a furnisher has engaged in any acts or practices that violate the Fair Credit Reporting Act or other federal consumer financial laws, it will take appropriate supervisory and enforcement actions to address violations and seek all appropriate corrective measures, possibly including restitution to harmed consumers. The CFPB will continue to review furnishers’ compliance with these requirements.

The CFPB accepts consumer complaints about credit reporting. If a consumer is dissatisfied with the resolution of a dispute with a consumer reporting company or if the consumer reporting company does not respond, consumers can submit a complaint with the Bureau.

To submit a complaint, consumers can:

  • Go online at consumerfinance.gov/complaint
  • Call the toll-free phone number at 1-855-411-CFPB (2372) or      TTY/TDD phone number at 1-855-729-CFPB (2372)
  • Fax the CFPB at 1-855-237-2392
  • Mail a letter to: Consumer Financial Protection Bureau, P.O. Box 4503, Iowa City, Iowa52244

 

Today’s bulletin:

 

CFPB Bulletin 2013-09

Date: September 4, 2013

Subject: The FCRA’s requirement to investigate disputes and review “all relevant” information provided by consumer reporting agencies (CRAs) about the dispute

The Fair Credit Reporting Act (FCRA) generally requires a consumer reporting agency (CRA) to notify a furnisher when a consumer disputes the accuracy or completeness of an item of information provided by the furnisher to the CRA.1 The CRA must also promptly provide the furnisher “all relevant information” regarding the dispute that the CRA timely received from the consumer.2 The furnisher, in turn, must “conduct an investigation with respect to the disputed information,” “review all relevant information” provided by the CRA, and respond appropriately based on the result of the investigation.3 The CFPB expects CRAs and furnishers to comply fully with these FCRA requirements, thereby promoting the accuracy and completeness of information in the consumer reporting system.

This bulletin specifically addresses furnishers’ obligations to “review all relevant information” they receive in connection with disputes forwarded by CRAs.

The CFPB expects furnishers to have reasonable systems and technology in place to receive and process notices of disputes and information regarding disputes, including relevant documentation, forwarded to them by CRAs. The CFPB also expects every furnisher to review and consider “all relevant information” relating to the dispute, including documents that the CRA includes with the notice of dispute or transmits during the investigation, and the furnisher’s own information with respect to the dispute.

 

1 15 U.S.C. § 1681i(a)(2)(A).

2 15 U.S.C. § 1681i(a)(2)(A), (B).

3 15 U.S.C. § 1681s-2(b)(1).

Moderator
Shogun
Posts: 12,902
Registered: ‎04-15-2011

Re: CFPB Weighs In on CRA Dispute Process

Thanks for the post RobertEG!


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Established Contributor
pipeguy
Posts: 611
Registered: ‎10-31-2011

Re: CFPB Weighs In on CRA Dispute Process

Excellent news !!

 

Thank you Robert for posting this info.

 

 

*** Remember the Tallyman because he sure remembers you ***
New Member
mtwallet
Posts: 1
Registered: ‎10-04-2013

Re: CFPB Weighs In on CRA Dispute Process

[ Edited ]

Interesting read, however as one would expect from a government agency. I do not believe they have any real interest in it. I've just had a case closed by them regarding this exact issue. In which an information furnisher refuses to verify a debt. They refused a debt verification letter sent CRRR. They actually wrote refused on the envelope and sent it back. They won't answer phone calls, return messages or  I realize that refusing the letter means that they don't recieve legal notice. So I ask that you read my complaint and then the "auto-responses" received from the CFPB and tell me, am I wrong? There reason for closing the case appears to be that this issue "does not
 involve any law within their authority".

 

This is the complete file with the exception of my personal information deleted for privacy.

 

 

 

Welcome Matthew Taylor [Logout]

 

What happened
Describe what happened so we can understand the issue...
I mailed a request for debt validation/verification via USPS certified mail, return receipt requsted. The collection agency refused the delivery. Phone calls to the agency have gone unanswered and messages are not returned. It appears they are refusing to communicate the validity of the debt they are trying to collect.
This is about a(n) Debt collection: I do not know 
Which of these best describes your issue? Disclosure verification of debt: Not given enough info to verify debt 
Desired resolution
What do you think would be a fair resolution to your issue?
Cease and desist all collection efforts and remove invalid entries made to my files with all of the credit reporting agencies. (Transunion, Equifax, and Experian).
Consumer information Contact information
Mailing address
Mr  Matthew  Taylor 
3436 Scotsdale Dr. 
 
Springfield  OH  45504 
United States 
Phone 937-327-8548 
Age 44 
 
Last four digits of SSN
7412
Product information Company Submitted Against
JD Enterprises and Financial 
15935 Whittier Blvd. Suite A 
Whittier  CA  90603 
United States 

Account number D73071N1 
 
 
 
 

Debt Collector Information
JD Enterprises and Financial
15935 Whittier Blvd. Suite A
 
Whittier
CA 
90603
US 
 
 

Debt collector account number
D73071N1
 
 

Creditor Information
 
 
 
 
 
 
 

 
 
Submit a complaint against creditor
No 
Supporting documents

Complaint history

Auto-Response 10/08/2013 09:20 AM
We reviewed your complaint to see if it involves a Federal consumer financial law within our authority, and found we were not able to act on your complaint. Although we have closed your file, we would like you to know:

- We have sent a copy of your complaint to the Federal Trade Commission, where they have included it in a database for state and federal law enforcement agencies.

- You may contact your state and local consumer protection offices about the issues raised in your complaint. Call 311 or your local directory assistance to find your local resources.

- You may contact the company about this matter directly to try and resolve the issue.

- You may seek help from an attorney, your local legal services office, or file your own case in court. Certain laws may limit the time period in which you can file a case in court. If you need free advice from an attorney, you can contact legal aid organizations for a referral. Visit www.lsc.gov to find legal aid in your area.

We take complaints very seriously and appreciate the information you provided throughout this process – it helps us identify trends and problems in the marketplace and better understand the challenges American consumers face.

Thank you,


Consumer Financial Protection Bureau

consumerfinance.gov

(855) 411-CFPB (2372)


Auto-Response 10/01/2013 10:30 AM
We reviewed your complaint, but the company you complain about is not yet registered in our system. We are actively trying to register the company you identified so we can process your complaint. We will let you know when we are able to forward your complaint to the company.

In the meantime:

- We’ve sent a copy of your complaint to the Federal Trade Commission, where they’ve included it in a database for state and federal law enforcement agencies.

- You may contact your state and local consumer protection offices about the issues raised in your complaint. Call 311 or your local directory assistance to find your local resources.

- You may contact the company about this matter directly.

- You may get help from a private attorney, your local legal services office, or file your own case in court. Certain laws may limit the time period in which you can file. If you need free advice from an attorney, you can contact legal aid organizations for a referral. Visit www.lsc.gov to find legal aid in your area.

Please keep in mind that, the CFPB cannot represent individuals in legal matters, and that this letter is not meant to say whether or not your complaint is valid.

Questions?
If you have questions about consumer financial products or services, visit “Ask CFPB” at consumerfinance.gov/ASKCFPB.

We take complaints very seriously and thank you for the information you provided – it helps us identify trends and problems in the marketplace and better understand the challenges American consumer face. We apologize for any delay or inconvenience in the handling of your complaint.

Thank you,


Consumer Financial Protection Bureau

consumerfinance.gov

(855) 411-CFPB (2372)


Customer Matthew Taylor 09/27/2013 12:16 PM
I mailed a request for debt validation/verification via USPS certified mail, return receipt requsted. The collection agency refused the delivery. Phone calls to the agency have gone unanswered and messages are not returned. It appears they are refusing to communicate the validity of the debt they are trying to collect.
Auto-Response 09/27/2013 12:16 PM

Thank you for contacting the Consumer Financial Protection Bureau (CFPB).

Our Office of Consumer Response has received your submission and will review it as soon as possible to determine if it involves a Federal consumer financial law within our authority. Please be aware that the Office of Consumer Response cannot represent individuals and we are not a substitute for legal counsel.

Depending on what we find, we will either:
- Send your complaint to the company for a response;
- Send your complaint to the appropriate regulator or help you get in touch with your state and local consumer protection office if your complaint is not within our authority; or
- If we need more information to continue our work, we will reach out again and let you know.

If you couldn’t provide the name of the company when you submitted your complaint, call us at (855) 411-CFPB (2372) in the next 30 days to tell us the company’s name. If we don’t hear from you within 30 days, your complaint will be closed.

Regardless, your submission will help us understand the marketplace better and help us to protect consumers like you.

You can set up an account to check the status of your submission at any time at https://help.consumerfinance.gov/app/account/complaints/list



Thank you,

Consumer Financial Protection Bureau
consumerfinance.gov
(855) 411-CFPB (2372)

 

 

Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: CFPB Weighs In on CRA Dispute Process

Your case apparently relates to a debt verification issue under the FDCPA, and not a dispute of credit reporting filed with a CRA under the FCRA.

Thus, its content does not appear to relate to the topic of their policy memo.

There is no requirment under the FDCPA for any response to a request for debt validation/verification.

 

Not knowing the facts of the case, and absent any details in the canned CFPB response, it is difficult to understand the real issue.

If the issue is their failure to have accepted the letter, that kinda perplexes me, as if they dont open and read it, they would have no way to tell whether it was a timely DV.

Thus, the DV could have unknowingly placed them under a cease collection bar.

Was it a timely DV, meaning it was sent either without prior dunning notice, or after 30-days from their dunning notice?

Did they know, based on earlier correspondence, that the period for timely DV had expired?

 

 


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+