Tag: CFPB

CFPB Issues Statement Concerning the Investigative Responsibilities of CRAs and Furnishers Under the FCRA The Consumer Financial Protection Bureau (CFPB) has recently issued a statement concerning the obligations of credit reporting agencies (CRAs) and furnishers under the Fair Credit Reporting Act (FCRA) to ensure maximum possible accuracy in their reporting. This report issued in conjunction with several amicus briefs reminds CRAs and furnishers of the Bureau’s position that they are required to ensure both “legal” and “factual” accuracy. In support of this position, the statement reports that the CFPB, in conjunction with the Federal Trade Commission, has filed an amicus brief in two cases. One of these cases was filed against a CRA and the other against a furnisher. In the case filed against the CRA, the plaintiff alleges that the CRA failed to comply with the FCRA by employing inadequate procedures to ensure accuracy. According to the plaintiff’s claims, the CRA reported that she owed a final payment on a car lease which was, in actuality, a balloon payment that she was not required to make. However, the defending CRA claims that it could not be held responsible for inaccurately reporting the information because the error was “legal” rather than “factual. The CRA further argued that the information can not be “inaccurate” because it was provided to the company by a furnisher. The CFPB and FTC filed a joint brief in the case arguing that the FCRA contains no exception for “legal” inaccuracies and that CRAs are required to maintain reasonable procedures to ensure accuracy regardless of the type of inaccuracy. In the other case in which the federal agencies filed an amicus brief, the claim was filed by a consumer who had suffered from identity theft performed by a former employee. A court had found the perpetrator guilty and had provided the plaintiff with a document stating that she should not be held accountable for the debts associated with the crime. However, despite filing a dispute, a bank continued to furnish a debt caused by the crime to CRAs, and the consumer filed a lawsuit in response. The furnisher claimed that the error was “legal,” not factual, because it argued that the consumer was responsible for the actions of its employee. As a result, it argued that it should be exempt from liability for reporting the account even should the report be deemed inaccurate. The brief, similar to its argument regarding CRAs, argued that furnishers hold a responsibility under the FCRA to perform a reasonable investigation of disputed information no matter whether the dispute can be characterized as “legal” or “factual” in nature. Background checks are made easy with Pre-employ. Ask us any questions and discover more by contacting a sales rep today. Source

Tag: CFPB

CFPB Issues Statement Concerning the Investigative Responsibilities of CRAs Under FCRA

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