Sec. 104. Duties of furnishers relating to dispute procedures, notices, and disclosures

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Section 623(a) of the Fair Credit Reporting Act ( 15 U.S.C. 1681s–2(a) ) is amended— in the subsection heading, by inserting after and complete ; accurate in paragraph (1)— by inserting or incomplete after inaccurate each place that term appears; and in subparagraph (D), by inserting or completeness after accuracy ; and in paragraph (8)— in subparagraph (A), by inserting and completeness after accuracy ; and in subparagraph (D), by inserting or completeness after accuracy . Section 623(a)(7) of the Fair Credit Reporting Act ( 15 U.S.C. 1681s–2(a)(7) ) is amended to read as follows: Any person that regularly furnishes negative information to a consumer reporting agency described in subsection

(p)or

(x)of section 603 about activity on any accounts of a consumer held by such person or transactions associated with credit extended to a consumer by such person shall provide a written general negative information warning notice to each such consumer before such person may furnish any negative information relating to such a consumer. Such notice shall— be clear and conspicuous; describe the types of activities that constitute negative information; inform the consumer that the person may report negative information relating to any such accounts or transactions to a consumer reporting agency described in subsection

(p)or

(x)of section 603; state that the negative information may appear on a consumer report of the consumer for the periods described in section 605 and that during such periods, the negative information may adversely impact the consumer’s credit score; state that in some limited circumstances, the negative information may result in other adverse actions, including a denial of a new job or a promotion from existing employment; and state that the consumer has right to— obtain a copy of their consumer report and credit score or educational score (if applicable), which in some instances can be obtained free of charge, from any consumer reporting agency to which negative information may be been sent; and dispute, free of charge, any errors on a consumer report relating to the consumer. Such person shall provide such notice to a consumer not later than 90 days before the date on which the person furnishes negative information relating to such consumer. Any person described in subparagraph

(A)that has furnished negative information relating to activity on any accounts of a consumer held by such person or transactions associated with credit extended to a consumer by such person to a consumer reporting agency described in subsection

(p)or

(x)of section 603 shall send a written notice to each such consumer. Such notice shall— be clear and conspicuous; inform the consumer that the person has furnished negative information relating to such accounts or transactions to a consumer reporting agency described in subsection

(p)or

(x)of section 603; identify any consumer reporting agency to which the negative information was furnished, including the name of the agency, mailing address, Internet website address, and toll-free telephone number; and include the statements described in subclauses (IV), (V), and

(VI)of subparagraph (A)(ii). Such person shall provide such notice to a consumer not later than 5 business days after the date on which the person furnished negative information relating to such consumer. After providing the notice described in subparagraph (B), the person may submit additional negative information to a consumer reporting agency described in subsection

(p)or

(x)of section 603 without providing additional notice to the consumer, unless another person acquires the right to repayment connected to the additional negative information. The acquiring person shall be subject to the requirements of this paragraph and shall be required to send consumers the written notices described in this paragraph, if applicable. Any person that furnishes negative information to a consumer reporting agency described in subsection

(p)or

(x)of section 603 relating to any accounts of, or transactions associated with, a consumer by such person involving non-traditional data shall be subject to the requirements described in subparagraphs (A), (B), and (C). Not later than 6 months after date of the enactment of this paragraph, the Bureau shall issue model forms for the notices described in subparagraphs

(A)and

(B)that a person may use to comply with the requirements of this paragraph. No provision of this paragraph may be construed to require a person to use the model notices prescribed by the Bureau. A person shall be deemed to be in compliance with the requirements of subparagraph (A)(ii) or (B)(ii) (as applicable) if the person uses the model notice prescribed by the Bureau. No provision of this paragraph may be construed to require a person described in subparagraph

(A)or

(D)to furnish negative information about a consumer to a consumer reporting agency described in subsection

(p)or

(x)of section 603. A person shall not be liable for failure to perform the duties required by this paragraph if the person reasonably believes that the person is prohibited, by law, from contacting the consumer. The requirements of subparagraphs (A), (B), (C), and

(D)shall not take effect until the date that is 6 months after the date of the issuance of model forms for notices under subparagraph (E). In this paragraph, the following definitions shall apply: The term negative information means information concerning a consumer’s delinquencies, late payments, insolvency, or any form of default. The term non-traditional data relates to telecommunications payments, utility payments, rent payments, remittances, wire transfers, and such other items as determined by the Bureau. . Section 623(a)(8)(E) of the Fair Credit Reporting Act ( 15 U.S.C. 1681s–2(a)(8)(E) ) is amended to read as follows: After receiving a notice of dispute from a consumer pursuant to subparagraph (D), the person that provided the information in dispute to a consumer reporting agency shall— promptly provide to each consumer reporting agency to which the person furnished the disputed information the notice of dispute; review all information, including any substantiating documents, provided by the consumer about the disputed information and conduct an investigation, separate from any reinvestigation by a consumer reporting agency or a reseller conducted with respect to the disputed information; before the expiration of the period under section 611(a)(1) within which a consumer reporting agency would be required to complete its action if the consumer had elected to dispute the information under that section, complete an investigation of the disputed information pursuant to the standards described in subparagraph (G); notify the consumer, in writing, of the receipt of the dispute that includes— a statement about any information additional to the information that the person is required to maintain under subsection

(f)that would support the person’s ability to carry out an investigation to resolve the consumer’s dispute; and a statement that the consumer reporting agency to which the disputed information was provided will include a notation described in section 605(e) in the consumer’s file until the investigation has been completed, and information about how a consumer may request that such notation is removed by the agency; if the investigation determines the disputed information is inaccurate, incomplete, or unverifiable, promptly notify each consumer reporting agency to which the person furnished such information in accordance with paragraph (2); and notify the consumer of the results of the investigation, in writing, in accordance with subparagraph (H). . Section 623(a)(8) of the Fair Credit Reporting Act ( 15 U.S.C. 1681s–2(a)(8) ) is amended by striking subparagraph

(F)and redesignating subparagraph

(G)as subparagraph (F). Section 623(a)(8) of the Fair Credit Reporting Act ( 15 U.S.C. 1681s–2(a)(8) ), as amended by subsection (d), is further amended by adding at the end the following new subparagraphs: In any investigation conducted by a person who furnishes information to a consumer reporting agency of an item of information being disputed by a consumer, the person, at a minimum— shall maintain sufficient resources and trained staff, commensurate with the volume and complexity of disputes received or reasonably anticipated to be received, to conduct investigations; shall verify that the person has a record of the particular information being disputed, consistent with the requirements of subsection (f); shall verify that the personally identifiable information of the consumer submitting the dispute matches the personally identifiable information contained on such records; shall conduct a reasonable review to determine whether the disputed information is accurate, complete, and can be verified that considers all the information, including any substantiating documents, provided by the consumer about the disputed information; shall ensure that the investigation is an independent analysis that is separate from any reinvestigation by a consumer reporting agency or a reseller conducted with respect to the disputed information; and may not impose any limitations or otherwise impede the ability of a consumer to submit information, including any substantiating documents, about the disputed information. The notice of the results of the investigation described in subparagraph

(E)shall include— a statement informing the consumer as to whether the disputed information was determined to be inaccurate, incomplete, or unverifiable; a statement of the specific reasons supporting the results of the investigation; a description of the procedure used by the dispute resolution staff of the person who furnishes information to a consumer reporting agency to determine the accuracy or completeness of the information, including the business name, mailing address, telephone number, and Internet website address (if available) of any person who was contacted by the staff in connection with the determination; a copy of all information relating to the consumer that was used in carrying out the investigation and was the basis for any determination about the accuracy or completeness of the disputed information; a statement that consumer will receive, free of charge, a copy of their consumer report and credit score or educational credit score (if applicable), from any consumer reporting agency to which the disputed information had been provided, regardless of whether the consumer obtained or will obtain a free consumer report and credit score or educational credit score (if applicable) in the 12-month period preceding receipt of the notice described in this subparagraph pursuant to section 612(a)(1); if the disputed information was found to be inaccurate, incomplete, or unverifiable, a statement that the consumer report of the consumer shall be revised to reflect the change to the consumer’s file as a result of the investigation; a statement that the consumer has the right to appeal the results of the investigation under paragraph (10), free of charge, within 120 days after the date of the notice of the results of the investigation was provided to the consumer and the process for submitting an appeal; a statement that the consumer may add a narrative statement, free of charge, to the consumer’s file held by the consumer reporting agency to which the information has been furnished disputing the accuracy or completeness of the information, regardless of the results of the investigation by the person, and the process for contacting any agency that received the consumer’s information from the person to submit a narrative statement; a statement informing the consumer that a notation described in section 605(e) will be added to the consumer’s file during the period in which the consumer appeals the results of an investigation and that such notation can be removed at the request of the consumer; and a statement that the consumer has the right to request a copy of their consumer report and credit score or educational credit score (if applicable), free of charge, within the 12-month period following the date of the conclusion of the investigation from any consumer reporting agency in which the disputed information had been provided, regardless of whether the consumer obtained or will obtain a free annual consumer report and credit score or educational credit score (if applicable) under this subparagraph or section 612(a)(1). . Section 615(a)(4)(B) is amended— by striking , under section 611, with a consumer reporting agency ; and by striking furnished by the agency and inserting to a consumer reporting agency under section 611 or to a person who furnished information to an agency under section 623 .

Connections4 off-index

4 references not yet in our index

15 USC 1681s–2(a)
15 USC 1681s–2(a)(7)
15 USC 1681s–2(a)(8)(E)
15 USC 1681s–2(a)(8)

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cites case law

Sec. 104

Duties of furnishers relating to dispute procedures, notices, and disclosures

Cite15 USC 1681s–2(a)

Cite15 USC 1681s–2(a)(7)

Cite15 USC 1681s–2(a)(8)(E)

Cite15 USC 1681s–2(a)(8)

Cites 4Cited by 0 across 0 sources