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Mega Contributor
RobertEG
Posts: 18,215
Registered: ‎03-19-2007
0

Direct Dispute Process is now law

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.

MYU
New Member
MYU
Posts: 7
Registered: ‎06-27-2010
0

Re: Direct Dispute Process is now law

Interesting. Thanks for the update. 

Frequent Contributor
ScarletFever
Posts: 322
Registered: ‎02-11-2008
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Re: Direct Dispute Process is now law

Robert: What if CRA is reporting wrong out of incompetency? How do we dispute? Will CRA now defer all inquiries to the OC? 

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Mega Contributor
RobertEG
Posts: 18,215
Registered: ‎03-19-2007
0

Re: Direct Dispute Process is now law

The new rules do not eliminate the dispute process under FCRA 611(a).

You can dspute through the CRA, or directly with the party who reported the information.

New Contributor
m3v8
Posts: 59
Registered: ‎05-09-2010
0

Re: Direct Dispute Process is now law

This is good news, thanks for posting... I would never know otherwise. Let the disputes begin!

05/09 EX-573, EQ-578, TU-587
05/10 EX-606, EQ-636, TU-715
Established Member
HughBrockner1
Posts: 49
Registered: ‎01-15-2010
0

Re: Direct Dispute Process is now law

So, having said that is there going to be differences on paper trails and procedures?

Established Member
HughBrockner1
Posts: 49
Registered: ‎01-15-2010
0

Re: Direct Dispute Process is now law

This can certainly  expedite the time on the overall process. Any pertinent info would be appreciated?!

Established Member
HughBrockner1
Posts: 49
Registered: ‎01-15-2010
0

Re: Direct Dispute Process is now law

 

Direct Disputes
Section 623(a)(8) of the FCRA directs
the Agencies jointly to prescribe
regulations that identify the
circumstances under which a furnisher
is required to reinvestigate a dispute
concerning the accuracy of information
contained in a consumer report on the
consumer, based on a direct request by
the consumer. In prescribing the direct
dispute regulations, section 623(a)(8)
directs the Agencies to weigh the
following specific factors:
• The benefits to consumers and the
costs to furnishers and the credit
reporting system;
• The impact on the overall accuracy
and integrity of consumer reports of any
direct dispute requirements;
• Whether direct contact by the
consumer with the furnisher would
likely result in the most expeditious
resolution of any dispute; and
• The potential impact on the credit
reporting process if credit repair
organizations are able to circumvent the
provisions in subparagraph G of section
623(a)(8), which generally states that the
direct dispute rules shall not apply
when credit repair organizations
provide notices of dispute on behalf of consumers.

 

 

Mega Contributor
RobertEG
Posts: 18,215
Registered: ‎03-19-2007
0

Re: Direct Dispute Process is now law

[ Edited ]

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. 

 

Established Member
HughBrockner1
Posts: 49
Registered: ‎01-15-2010
0

Re: Direct Dispute Process is now law

Thanks Robert. I'll check that out.

 

I did find this:

http://www.bankersonline.com/regs/222/e222.html


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