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Disputed report with CRA. CRA didn't mark as disputed. Is this a violation?


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@sillymonkey

 

This is kind of tricky.  1681i© states:

 

© Notification of consumer dispute in subsequent consumer reports

Whenever a statement of a dispute is filed, unless there is reasonable grounds to believe that it is frivolous or irrelevant, the consumer reporting agency shall, in any subsequent consumer report containing the information in question, clearly note that it is disputed by the consumer and provide either the consumer’s statement or a clear and accurate codification or summary thereof.
 
If your dispute was not based upon an actual error or inaccurate information, it's possible that they could deem your dispute to be frivolous.  As a result, they wouldn't have to report the entry as disputed.
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If your dispute was not based upon an actual error or inaccurate information, it's possible that they could deem your dispute to be frivolous.  As a result, they wouldn't have to report the entry as disputed.

 

 

Very true.  And, if you disputed 6 or 8 things all at once, the minimum wage data entry person could have run out of time or patience and just ignored that one.

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@sillymonkey

 

This is kind of tricky.  1681i© states:

 

© Notification of consumer dispute in subsequent consumer reports

Whenever a statement of a dispute is filed, unless there is reasonable grounds to believe that it is frivolous or irrelevant, the consumer reporting agency shall, in any subsequent consumer report containing the information in question, clearly note that it is disputed by the consumer and provide either the consumer’s statement or a clear and accurate codification or summary thereof.
 
If your dispute was not based upon an actual error or inaccurate information, it's possible that they could deem your dispute to be frivolous.  As a result, they wouldn't have to report the entry as disputed.

 

 

 

"Bailey v. Equifax." (E. D. Mich. 2013)

 

Plaintiff alleges that FIA violated § 1681s-2 by negligently and willfully failing to conduct a proper investigation by failing to review the relevant information provided to it and by failing to remove the FIA account from Plaintiff's credit report. (Compl. ¶¶ 40-41.) Plaintiff alleges the information FIA provided was inaccurate and created a misleading impression on Plaintiff's credit report. (Id. ¶ 42.) Because of FIA's actions, Plaintiff states she suffered damages, mental anguish, suffering, humiliation, and embarrassment. (Id. ¶ 43.)

Section 1681s-2 prevents "furnishers of information" "from spreading inaccurate consumer-credit information." Boggio v. USAA Federal Sav. Bank, 696 F.3d 611, 614 (6th Cir. 2012) (citation omitted). The section "works in two phases." Id. The section first requires furnishers to provide CRAs with accurate information about their consumers. Id. (citing 15 U.S.C. § 1681s-2(a)). After the furnisher provides the initial information, a CRA may ask the furnisher "to respond to disputes about the consumer information provided." Id. "If at some point a CRA discovers that either the `completeness or accuracy' of a consumer's information is in dispute — and provided that it does not determine the dispute to be `frivolous or irrelevant' — that CRA will then notify the original furnisher and provide it with `all relevant information regarding the dispute.'" Id. (quoting § 1681i(a)(1)-(3)). If a furnisher receives notice from a CRA, it faces the following duties: After receiving notice pursuant to [§] 1681i(a)(2) of this title of a dispute with regard to the completeness or accuracy of any information provided by a person to a consumer reporting agency, the person shall —

(A) conduct an investigation with respect to the disputed information;

(
B)
review all relevant information provided by the [CRA] pursuant to {§] 1681i(a)(2) of this title;

(
C
) report the results of the investigation to the [CRA];

(D) if the investigation finds that the information is incomplete or inaccurate, report those results to all others [CRAs] to which the person furnished the information and that compile and maintain files on consumers on a nationwide basis; and

(E) if an item of information disputed by a consumer is found to be inaccurate or incomplete or cannot be verified after any reinvestigation under paragraph (1), for purposes of reporting to a [CRA] only, as appropriate, based on the results of the reinvestigation promptly —

(i) modify that item of information;

(ii) delete that item of information; or

(iii) permanently block the reporting of that item of information.

Id. (quoting 15 U.S.C. § 1681s-2(B)(1).

A consumer can file a private enforcement action only under § 1681s2(B), only after the furnisher receives notice of a dispute from a CRA. Boggio, 696 F.3d at 617-18. The Sixth Circuit has explored the parameters of the requirements § 1681s-2(B) places upon furnishers. See Boggio, 696 F.3d at 616-18.

The Sixth Circuit has explored what triggers § 1681s-2(B)(1)(D), the provision requiring furnishers to take certain actions if a furnisher discovers incomplete or inaccurate information. Boggio, 696 F.3d at 617-18. "[F]alse information about a consumer is clearly inaccurate[.]" Id. at 617. The court also noted how a report that "provides information in such a manner as to create a materially misleading impression," also violates the section. Id. (citation omitted). The misleading impression can involve inaccurate information or an omission that renders the reported information misleading.Id. The Sixth Circuit also noted how the Fourth and Ninth Circuits have held that a report that "fails to identify that a consumer disputes his information, at least where the consumer's dispute is `a bona fide dispute, a dispute that could materially alter how the reported debt is understood,'" also triggers the statute. Id. at 618 (citations omitted).

Here, for the same reasons that the Court granted Equifax's motion to dismiss, the Court grants FIA's motion — Plaintiff has failed to make factual allegations that support her claims that FIA reported inaccurate or misleading information or had unreasonable procedures. See Elsady v. Rapid Global Bus. Solutions, Inc., 09-11659, 2010 WL 2740154, at *7 (E.D.Mich. July 12, 2010) (Cohn, J.) ("[T]here is no reason to define accuracy differently for consumer reporting agencies and furnishers. The purpose of [the] FCRA is to protect consumers by ensuring accurate reporting of information and the commitment to accuracy should apply equally to all entities involved in the reporting process.").[3]

 

 

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