Appendix B to Part 601
Prescribed Notice of Furnisher
Responsibilities
This appendix prescribes the content of the required
notice.
NOTICES TO FURNISHERS OF
INFORMATION:
OBLIGATIONS OF FURNISHERS UNDER THE FCRA
The federal Fair Credit Reporting Act (FCRA), as
amended, imposes responsibilities on all persons who
furnish information to consumer reporting agencies
(CRAs). These responsibilities are found in Section 623
of the FCRA. State law may impose additional
requirements. All furnishers of information to CRAs
should become familiar with the law and may want to
consult with their counsel to ensure that they are in
compliance. The FCRA, 15 U.S.C. 1681-1681u, is set forth
in full at the Federal Trade Commission's Internet web
site (http://www.ftc.gov). Section 623 imposes
the following duties:
General Prohibition on Reporting Inaccurate
Information:
The FCRA prohibits information furnishers from
providing information to a consumer reporting agency
(CRA) that they know (or consciously avoid knowing) is
inaccurate. However, the furnisher is not subject to this
general prohibition if it clearly and conspicuously
specifies an address to which consumers may write to
notify the furnisher that certain information is
inaccurate. Sections 623(a)(1)(A) and (a)(1)(C)
Duty to Correct and Update Information:
If at any time a person who regularly and in the
ordinary course of business furnishes information to one
or more CRAs determines that the information provided is
not complete or accurate, the furnisher must provide
complete and accurate information to the CRA. In
addition, the furnisher must notify all CRAs that
received the information of any corrections, and must
thereafter report only the complete and accurate
information. Section 623(a)(2)
Duties After Notice of Dispute from
Consumer:
If a consumer notifies a furnisher, at an address
specified by the furnisher for such notices, that
specific information is inaccurate, and the information
is in fact inaccurate, the furnisher must thereafter
report the correct information to CRAs. Section
623(a)(1)(B)
If a consumer notifies a furnisher that the consumer
disputes the completeness or accuracy of any information
reported by the furnisher, the furnisher may not
subsequently report that information to a CRA without
providing notice of the dispute. Section 623(a)(3)
Duties After Notice of Dispute from
Consumer Reporting Agency:
If a CRA notifies a furnisher that a consumer disputes
the completeness or accuracy of information provided by
the furnisher, the furnisher has a duty to follow certain
procedures. The furnisher must:
Conduct an investigation and review all relevant
information provided by the CRA, including information
given to the CRA by the consumer. Sections
623(b)(1)(A) and (b)(1)(B)
Report the results to the CRA, and, if the
investigation establishes that the information was, in
fact, incomplete or inaccurate, report the results to all
CRAs to which the furnisher provided the information that
compile and maintain files on a nationwide basis. Sections
623(b)(1)(C) and (b)(1)(D)
Complete the above within 30 days from the date the
CRA receives the dispute (or 45 days, if the consumer
later provides relevant additional information to the
CRA). Section 623(b)(2)
Duty to Report Voluntary Closing of Credit
Accounts:
If a consumer voluntarily closes a credit account, any
person who regularly and in the ordinary course of
business furnishes information to one or more CRAs must
report this fact when it provides information to CRAs for
the time period in which the account was closed. Section
623(a)(4)
Duty to Report Dates of Delinquencies:
If a furnisher reports information concerning a delinquent account placed for
collection, charged to profit or loss, or subject to any similar action, the
furnisher must, within 90 days after reporting the information, provide the
CRA with the month and the year of the commencement of the delinquency that
immediately preceded the action, so that the agency will know how long to keep
the information in the consumer's file. Section 623(a)(5)
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