REINSERTION OF A DISPUTE ITEM

[TryingVeryHard]

I am not sure about the language of the law, but if a BALANCE of an account was stated as $654 and was disputed to the CRA, which lead to the CRA changing it to $0 after investigation, can CRAs list it back to $654 if the OC reverifies it. And if they can, SHOULD THEY (or are they legally obligated to) notify the consumer about this "reinsertion" within 5 days in writing? The law states:

Requirements relating to reinsertion of previously deleted material

(i) Certification of accuracy of information If any information is deleted from a consumer’s file pursuant to subparagraph (A), the information may not be reinserted in the file by the consumer reporting agency unless the person who furnishes the information certifies that the information is complete and accurate.

(ii) Notice to consumer If any information that has been deleted from a consumer’s file pursuant to subparagraph (A) is reinserted in the file, the consumer reporting agency shall notify the consumer of the reinsertion in writing not later than 5 business days after the reinsertion or, if authorized by the consumer for that purpose, by any other means available to the agency.

(iii) Additional information As part of, or in addition to, the notice under clause (ii), a consumer reporting agency shall provide to a consumer in writing not later than 5 business days after the date of the reinsertion—

(I) a statement that the disputed information has been reinserted;

(II) the business name and address of any furnisher of information contacted and the telephone number of such furnisher, if reasonably available, or of any furnisher of information that contacted the consumer reporting agency, in connection with the reinsertion of such information; and

(III) a notice that the consumer has the right to add a statement to the consumer’s file disputing the accuracy or completeness of the disputed information.

Is the requirement for notification for reinsertion only applicable to the DISPUTED and DELETED entries, or is it also applicable to the DISPUTED and UPDATED. When the CRA changed my balance from 654 to 0, is this a form of deletion and eventually correction? Or is it only a correction and was never a deletion, and thus making the "requirement of notice" inapplicable? Sorry English is my second language, and law is my 3rd. I will appreciate opinion and replies. Transunion changed my balance from 654 to 0 then back to 654 again. The changed it to zero after i sent them document, but then again the OC said the information was "reverified" using the information they have on their database. Grr!

[Anonymous]

try this thread

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=8815&query.id=4045...

[TryingVeryHard]

This is actually kinda different. I am talking about an "updated" file, dont know if the term "deletion" applies.

[Ausfarm]

You have a good question.  15 USC Section 1681i contains the reinsertion rule.  The part that says information can't be reinstered refers back to Subparagraph (A).  Subparagraph (A) speaks in terms of deletion and modification.  However, it looks like maybe there was some sort of drafting error and rather than saying "If any information is deleted or modified...under subparagraph (A)" it says "deleted" only.  My guess is it applies to any information that was changed as a result of a dispute.  I would go ahead and send the Tuscani's sample letter.  If you really want to dig into this, you'd first want to look at the federal regulations that go with this statute.  The federal regulations usually clear up ambiguity in the law.  You'd also have to potentially do case law research. 

(a)(5) Treatment of inaccurate or unverifiable information.--

            (A) In general.--If, after any reinvestigation under paragraph (1) of any information disputed by a consumer, an item of the information is found to be inaccurate or incomplete or cannot be verified, the consumer reporting agency shall--

            (i) promptly delete that item of information from the file of the consumer, or modify that item of information, as appropriate, based on the results of the reinvestigation;  and

            (ii) promptly notify the furnisher of that information that the information has been modified or deleted from the file of the consumer.

            (B) Requirements relating to reinsertion of previously deleted material.--

            (i) Certification of accuracy of information.--If any information is deleted from a consumer's file pursuant to subparagraph (A), the information may not be reinserted in the file by the consumer reporting agency unless the person who furnishes the information certifies that the information is complete and accurate.

            (ii) Notice to consumer.--If any information that has been deleted from a consumer's file pursuant to subparagraph (A) is reinserted in the file, the consumer reporting agency shall notify the consumer of the reinsertion in writing not later than 5 business days after the reinsertion or, if authorized by the consumer for that purpose, by any other means available to the agency.

            (iii) Additional information.--As part of, or in addition to, the notice under clause (ii), a consumer reporting agency shall provide to a consumer in writing not later than 5 business days after the date of the reinsertion--

            (I) a statement that the disputed information has been reinserted;

            (II) the business name and address of any furnisher of information contacted and the telephone number of such furnisher, if reasonably available, or of any furnisher of information that contacted the consumer reporting agency, in connection with the reinsertion of such information;  and

            (III) a notice that the consumer has the right to add a statement to the consumer's file disputing the accuracy or completeness of the disputed information.

            (C) Procedures to prevent reappearance.--A consumer reporting agency shall maintain reasonable procedures designed to prevent the reappearance in a consumer's file, and in consumer reports on the consumer, of information that is deleted pursuant to this paragraph (other than information that is reinserted in accordance with subparagraph (B)(i)).

Message Edited by Ausfarm on 12-11-2007 12:27 PM