Epic Contributor
Posts: 23,312
Registered: ‎03-19-2007
Re: Successful Dispute on EX; will others update automatically?
[ Edited ]

The breakdown in the process occurs when the furnisher, upon receiving a copy of the dispute from the CRA, ignores it or fails to repond back to the CRA.


The statutory process is as follows:

1. The CRA is required, within 5 days of receiving the dispute, to forward it to the furnisher of the disputed information for their investigation.  FCRA 611(a)(2).


2. The furnisher is then required, under FCRA 623(b), to conduct their investigation of the dispute information, and report their results back to the CRA before the expiration of the CRA reinvestigation period, which is usually 30 days. 


3. If the furnisher agrees that the information is inaccurate, they can either report a correction to the CRA or leave the information as unverified by them, which requiires they report its deletion to the CRA who is handling the dispute, and to any other CRA to which they have reported the information..  FCRA 623(b)(1)(D) and (E).


4. The CRA, using the (hopefull provided) response from the furnisher and any other information available to them, conducts their "reinvestigation" of the disputed information, makes a determination, and sends notification of their finding to the consumer.


While the furnisher does have a statutory obligation to report back to the CRA and, if they either decide to correct or cannot verify the accuracy, report that fact to the CRAs, that does not ensure that they will do so.  If the CRA does not receive verification or correction from the furnisher, they will most likely conclude their reinvestigation with the determination that they cannot verify, and thus are compelled to delete.  But that is done only by the CRA handling the dispute.  The other CRAs remain clueless.


Not having responded to the CRA with respect to the dispute itself, the furnisher is highly unlikely to comply with the section 623(b)(1)(E) requirement to report any correction or deletion to each of the CRAs.  So they have a double-failure to comply with the statute.


The FCRA does not specify a procedure for dealing with lack of furnisher compliance with either their obligation to respond back to the CRA or to report any correction or deletion to each CRA.  So the consumer sits in limbo with unverified information remaining with the other CRAs that did not handle the dispute itself.