06-27-2010 11:49 PM
I would just like to remind all of those who are considering disputes of accuracy of information in their credit reports of the major change in the dispute process that legally take effect on 7/1/2010.
Up until now, the arcane rules of FCRA 611(a) required we consumers, even though our dispute was with the one who posted information to our credit files, to first file our disputes with the CRAs, who would then use their stupid E-Oscar process, and forward what they chose to consider as “relevant information” (FCRA 611(a)(2)) to the creditor, then for the creditor to report back to the CRA, and then for the CRA, who was never even a party to the disputed issues, to render their decision. Kinda stupid and cumbersome, to say the least.
Congress recognized, more than a decade ago, the stupidity of this procedure.
They set forth what is called a “direct dispute” procedure that enables the consumer to dispute directly with the party that posted to their credit report. That was enacted as FCRA 623(a)(8).
But it had a major hitch, as a legislative concession to the creditor lobby.
It required, before the direct dispute rights was made law, that all interested parties be given the opportunity to first express their concerns, support, or objections.
It would only become law upon publication of final rules published by the major federal banking authorities.
So, proposed rules were published at
70944 Federal Register / Vol. 72, No. 239 / Thursday, December 13, 2007 / Proposed Rules. Comments and opinions received……..
It then took over a year and a half for final rules to be published.
They were finally published in the Federal Register as:
31484 Federal Register / Vol. 74, No. 125 / Wednesday, July 1, 2009 / Rules and Regulations
This fully enacts the provisions of FCRA 623 (a)(8), as of the state effective date of 7/1/2010. It now gives we consumers the right to directly dispute with the provider of disputed information, be they an OC or debt collector, without having to go through the arcane intermediary of a CRA.
06-28-2010 05:56 PM
Robert: What if CRA is reporting wrong out of incompetency? How do we dispute? Will CRA now defer all inquiries to the OC?
06-28-2010 09:42 PM
06-28-2010 10:42 PM - edited 06-28-2010 10:49 PM
Hugh, the implementing language of FCRA 623(a)(8) that you cite is only for the prelimimary process of a decade ago that lauuched the long and tortorous process that has now provided consumers with statutory, direct dispute rights. The final enactment of rule making, published in the Federal Register. The new direct dispute process. FCRA 623(A)(8) does NOT include, by intention of Congress, any details of its provisions. Congress left it to the rulemaking authority of the federal banking institutions to enact the implementing provisions of this law.
Those are now published at 31484 Federal Register / Vol. 74, No. 125 / Wednesday, July 1, 2009 / Rules and Regulations
FCRA 623(a)(8) only set forth guidelines to be used in the publicatiion of final rules, not the rules.
What is now published as the new direct dispute process, at 31484 Federal Register / Vol. 74, No. 125 / Wednesday, July 1, 2009 / Rules and Regulations, has the full force and effect of federal statute. It is now an integral part of the FCRA, absent any subsequent federal court ruling that any parts thereof are in conflict with other federal statutes. That is not the case.