Does anyone know the FCRA reference that forbids reporting lates on CO Accounts?

[Anonymous]

I"m looking to challenge my Bally's since it is CO since '02 but reported 54 90+ days lates as late as 5 years after that.

I'd like to be able to quote that law but can't find it, does anyone know it off hand?

Thanks!

[Anonymous]

The FCRA says reporting must be accurate:

§ 602. Congressional findings and statement of purpose [15 U.S.C. § 1681](a) Accuracy and fairness of credit reporting. The Congress makes the following findings:

(1) The banking system is dependent upon fair and accurate credit reporting. Inaccurate

credit reports directly impair the efficiency of the banking system, and unfair credit

reporting methods undermine the public confidence which is essential to the

continued functioning of the banking system.

§ 623. Responsibilities of furnishers of information to consumer reporting agencies

[15 U.S.C. § 1681s-2]

(a) Duty of Furnishers of Information to Provide Accurate Information

(1) Prohibition

( A) Reporting information with actual knowledge of errors. A person shall not

furnish any information relating to a consumer to any consumer reporting

agency if the person knows or has reasonable cause to believe that the

information is inaccurate.

( B) Reporting information after notice and confirmation of errors. A person shall

not furnish information relating to a consumer to any consumer reporting

agency if

(i) the person has been notified by the consumer, at the address specified by

the person for such notices, that specific information is inaccurate; and

(ii) the information is, in fact, inaccurate.

Inaccurate reporting is a violation of Section 602(a)(1), 623(a)(1)(A), 623(a)(1)(B)

[RobertEG]

I think that the answer to your question is one of contract law rather than express violation of a provision of the FCRA.  The FCRA does not have a section that expressely forbids  an OC to continue to report delinquencies after a CO or CA.  The FCRA is not intended to be a codification of all requirements of contract law.

However, when the OC charges off the debt for tax writeoffl, the account is closed.  Subsequent delinquencies are in ssubstance a legal report by the OC that you have further defaulted in your contract.  Since they closed out the account, it is not possible for you to have subsequent legal defaults.  Delinquencies while the account was open,the chargeoff itself, and possibly any subsequent CA activity, are all fair reporting.  Subsequent defaults under closed terms of the original agreement, however, are not.

It is still a reporting violation under the FCRA for them to have done this, but your arguent needs to be based on contract law.

Message Edited by RobertEG on 10-27-2008 09:36 PM

[Maryn]

So what/how should someone proceed when this happens?  I'm in a similar boat? 

[Anonymous]

If you feel an entiry is misreporting information about you to credit report bureaus, regardless of the type of entity, the first few steps are always the same: inquiry with the reporting entity in a friendly way if you have a relationship (your existing bank, mortgage, store card) or complain vocally with consumer agencies if you don't have a relationship - this includes the BBB and the AG's consumer protection offices in your and the other party's home states, as well as the FTC.

Banks are subject to federal and state law, and there are additional agencies, like Office of the Comptroller of the Currency (Federal Treasury) or departments of banking or licensing in your state.

If there is no response, the next step is notifying the reporting entity of the violation: most likely a violation af the FCRA, as reporting must be accurate.

At this point notifying the CRA that a TL is reported inaccurately helps building the paper trail.

If nothing happen, next step is file suit in the appropriate jurisdiction - I recommend Small Claims Court.