A brief summary of the processes:
There are four primary procedures for handing issues with credit reporting under the FCRA
1. The dispute processes provided under the FCRA
The FCRA provides two administrative dispute process to consumers to dispute the accuracy of information in their credit files.
One is to dispute through a CRA, who handles the administrative matters, including forwarding a copy of hte dispute to the party who reported the information, receiving their report on the results of their investigation, and then reaching their final determination via their "reinvestigation."
Two is to send your dispute directly to the party who furnished the information to the CRA, That furnisher then responds directly to the consumer with the resutls of their investigation.
Both dispute processes require an investigation of the disputed information, and a decision within 30'ish days. They need not provide documentation in support of their decision or "prove" the accuracy of the reported information. You receive their affirmation that they have conducted a reasonble investigation, and their findiings.
2. The formal complaint procsses provided under theFCRA
When a consumer believes that any party has violated any provision of the FCRA, formal authority is provided under the FCRA itself for two federal agecies to take either santions or inititate their own civil action for any such violation. The original FCRA granted such authorty to the FTC. The recent creation of the CFPB additionally provded authorization to them.
As a matter of practice, they inform the party who is the subject of the complaint, and require their response. As a practical matter, they rarely bring civil action based on individual consumer complaints, but have the authority to do so. Thus, receiviing notice of a complaint from the FTC or CFPB gets the attention of the party.
3. The informal complaint processes made to private organizations.
Certain organizations, such as BBBs, hear complaints related to business practices. They do not have the authorrity to bring their own legal action, and cant compel a party to comply. Complaints to BBBs usually relate to poor business practices, such as unkept promises to delete reporting, a depend upon the party's concern in maintaining the business reputation.
4. Bringing your own civil action
A consumer can bring their own civil action against any party who they assert has violated any provision of the FCRA or FDCPA.
They can request the court to compel the party to comply. Additionally seeking award of damages is restricted under the FCRA is restircted.
Unlike the FCRA dispute processes, bringing civil action enables the consumer to compel the party to provide their documentation.
Thus, if a dispute is concluded and the consumer still dis agrees with their finding, they can use the legal discovery process of the courts to bring all of the evidence before a judge for a binding determination.
If it is shown that their violation was willful, the court can award both actual and punitive damages.
If a violation is shown to have resulted from negligence as opposed to wllful noncompliance, the court is limited only to the award of actual damages.
Another means is to address violations under state laws. Most states have their own versions of the federal FCRA, under which a consumer can assert violations through state agencies and/or state AGs.
