Confused about dispute time, 30 or 45 days?

[Anonymous]

I want to dispute a paid tax lien/judgement (different on different reports) to try and get it removed, but it's important that they only have 30 days to respond (sort of counting on bureaucracy here).  I recently got reports from TU and EQ from annualcreditreport.com, and I'm trying to figure out 1) if I buy another version of the report, can I use that to make a dispute and get the 30 days? and 2) if not, how long do I have to wait from when I downloaded those reports to get away from the 45 days?

I've looked everywhere and it's very confusing - some people do seem to have tried #1 above and had it not work, so I don't want to risk it unless I'm sure.  Thanks!!

[RobertEG]

I have seen different interpretations of the statute, most of which make sense to me, and most of which are also contradictory.

That lead me to conclude that the statute does not answer the question, and is up for interpretation.

FCRA 612(a)(3) states:

"Reinvestigations.  Notwithstanding the time periods specified in section 611(a)(1), a reinvestigation under that section by a consumer reporting agency upon a request of a consumer that is made after receiving a consumer report under this section ("free annual disclosure") shall be completed not later than 45 days after the date on which the request is received."

My interpretation, for what it is worth, is that if the free annual disclosure is not requested from the CRA after filing a dispute, and thus does not constitute information during the normal 30-day reinvestigation period, consistent with FCRA 611(b), then the prior receipt of a free annual disclosure has no relevance to the dispute process, and would not extend the CRA dispute process.  What if you ordered a free annual report three years ago?  Would that perptutually give the CRA 45 days for any reinvestigation of a dispute?  That makes no sense to me, and I dont believe was the intent of section 612(a)(3).

On the other hand, paying for a new CR after receiving the free report would appear to be totally irrelevant to section 612(a)(3), so no, I dont think one could reverse section 612(a)(3) by simply paying for a commercial report.

I would also note that you could probably avoid this whole legal mess by not filing your dispute through the CRA.  If you choose to optionally file a direct dispute, that is not under section 611(a)(1), so section 612(a)(3) would not apply.  Additionally the direct dispute process specifically, in the implementing rules at 16 CFR 660.4(3), sets the period for completion of investigation of a direct dispute as being the same period set forth in section 611(a)(1), with no mention of section 612(a)(3).

File it as a direct dispute, and avoid any CRA reinvestigative involvement, and thus any issue of extension of their reinvestigation period.

[Anonymous]

Hi Robert, that is really great advice!  In my case I'm disputing a tax lien, and since it wasn't reported by NYS directly, I don't think I'm able to dispute it with them.  I think I'll wait a month or two at least, and then order a report from another source and use that one to dispute.

[RobertEG]

In the case of PRs, you are correct, the party at interest is often not the reporting party, so it is tough to file a direct dispute.  In that case, you may have little choice other than to file your dispute through the CRA, as they know who the reporting party was, and have the obligation to make their contact with them.  You dont have to worry about who to contact.

IF dispute through the CRA is your best option in this case, why is the possibility of a 15-day extension of their reinvestigation period so critical?  How do you know they will invoke it?  You dont have to include a copy of a CR with a dispute, so why not just dispute without any mention of it?

Additionally, as an aside, if I may ask, what is your basis for disputing the accuracy of the reporting of the tax lien?

[Anonymous]

Hi Robert, thanks for the advice.  I don;t know they would invoke it,  but have read that they often do if you have pulled a free report anytime recently, even if you don't use that report to make the dispute.  I was curious if there is a time limit on this, or if it's not legal to do that, or what.

I am disputing it because the dates are wrong (it's actually much older than reported).  Only one agency reports it this way.  I care about the time period because I wouldn't mind if they just take it off altogether due to lack of response, of course.

[RobertEG]

Then I would not be concerned about whether they can extend their reinvestigation period to 45 days. 

Even if they were to invoke that provision, FCRA 612(a)(3) states that their reinvestigation must be completed "not later than 45 days after the date on which the request is received."  If the request was made prior to the dispute, then would not the "date of the request" most likley have expired prior to the normal 30-day reinvestigation period?

I dont see the concern.

After expiration of either the 30 or 45 day period, the CRA is required to send their written notice of results of their reinvestigation to you within 5 days "after completion of the reinvestigation."   That date is more important than concern over any 15 day extension.  You have an absolute date of latest possible notice to you within 50 days of the date of filing of your dispute.