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FCRA/FDCPA - Question about "Disputed" on CR


BeInformed2
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In reading various posts on the forum and the FCRA and FDCPA, I have a question:

When I dispute a item on my CR, the OC/CA/CR is supposed to note that the item as "disputed" on my CR. How long does the "disputed" notation stay on the CR? Until it is verified?

Also, when I send out a DV to a CA, aren't they supposed to add the "disputed" notation to my CR per the FDCPA? Out of 10 or so DV's, only one has added "disputed" to my CR.

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No according to the FCRA, the disputed status can remain no longer than 45 days. They must either resolve the dispute or remove the tradeline in that time. They may not leave an item in perpetual dispute. The FTC has made an official statement about this in the Tabler and Cohen opinion letters

http://www.ftc.gov/os/statutes/fcra/tabler.htm

http://www.ftc.gov/os/statutes/fcra/cohan2.htm (question #3)

The responsibility to investigate and to label an item as disputed are two different statutory responsibilities...each is seperate and uniquely enforceable.

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That's the way. However one of the CRAs has caught on to this tactic. TU will lock you out of your ability to access your report while a dispute is in process of investigation. I found that one out the hard way. When I challenged an illegal re-insert of a deleted tradeline, they locked my report out during the 30 day investigation period. Couldn't even access it through my annual free credit report.

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47,

It really just makes sense if you think about it. Also keep in mind notice of disputed status is not the same as a consumer statement once the investigation is finished.

How can the investigation be completed if it is still in dispute? How can it be disputed if the investigation is finished? And since they have to complete an investigation in 30 days (45 at the outside), it can't be perpetually in dispute without violating section 611. Nor can it be perpetually in dispute without violating section 623.

So which is it CRA? Did you fail to complete the investigation within 30 days or are you reporting falsely that the item is under investigation (disputed) when there is no investigation going on?

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let's talk about the different situation, where you complain to the reporting OC or the CA. If you dispute, they must report it as such. And as we know, there is no obligation for either the CA or the OC to resolve or delete. I don't believe Tabler or Cohen reflect this scenario.

Huh? FACTA changed all that. You can now dispute directly to the furnisher if you want to. But why? Do it as Xan says and just go for the head of the snake. The CRAs are required to pass on the dispute notice to the furnisher and by doing so this way it puts an extra requirement on the CRA to mediate the response.

Also don't forget that CAs have additional responsibilities under the FDCPA to report disputes to the CRAs and to not report false or misleading information about consumers.

Now I'm not going to argue how it happens in the wild since we know the CRAs don't do things the way the laws says they are supposed to. So just from a legal standpoint perpetual dispute status isn't supposed to be possible.

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Similar question - when I DV a CA, are they required to mark "Disputed" on my CR? If so, I would assume that it would be removed when/if they validated. If they never validate (which they usually don't) and don't mark as "disputed", then they are in violation - is that right?

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The DV is a dispute. All you need to say, in fact is "I dispute this"

Within a reasonable amount of time, the account should be marked as disputed. Say 30-60 days. I haven't seen specifics on a certain time frame.

CA's who don't validate MUST mark the account as disputed and CAN NOT verify a TL.

If they don't validate, I'd just dispute the TL. If it goes away and they cease collection efforts, fine.

More than likely, it'll come back verified, then you sue them for continued collection activity.

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