The statute clearly defines how and under what conditons they may decline to block, and that if they decline, they must provide prompt notice to the consumer.
A myriad of possible violations of section 605B, any and all of which I would promptily include in a formal complaint to the FTC, with a cc: to the CRA.
"FCRA 605B. Block of Information resulting from identity theft.
(a) Block.. Except as otherwise provided in this section, a consumer reporting agency shall block the reporting of any information in the file of a consumer taht the consumer identifies as informatino that resulted from an alleged identity theft, not later than 4 business days after the date of receipt by such agency of-
(1) appropriate proof of the identity of the consumer;
(2) a copy of an identity theft report;
(3) the identification of such information by the consumer; and
(4) a statement by the consumer that the information is not information relating to any transaction by the consumer
...
(c) Authority to Decline or Rescind.
(1) In general. A consumer reporting agency may decline to block, or may rescind any block, of information relating to a consumer under this section, if the consumer reporting agency determines that -
(A) the information was blocked in error of a clock requested by the consumer is in error;
(B) the information was blocked, or a block was requested by the consumer on the basis of a material misrepresentation of facts by the consumer relevant to the request to block; or
(c) the consumer obtained possession of goods, services, or money as a result of the blocked transaction or transactions.
(2) Notification to consumer. If a block of information is declined or rescinded under this subsection, the affected consumer shall be notified promptly, in the
same manner as consumers are notified of the reinsertion of information under section 611(a)(5)(B)."
