Collector - May 2018 - 54

It's Not Mine
How to handle direct disputes from the consumer under the Fair Credit Reporting Act.

"H

elp! I'm drowning in a sea of
disputes!" has been the cry of
many data furnishers in the
debt collection industry recently. However,
understanding the Fair Credit Reporting
Act requirements for handling disputes can
be a lifeline in that raging sea.
The FCRA has two distinct dispute
mechanisms. A consumer can dispute a debt
by sending it to their consumer reporting
agency (CRA) or the consumer can send
the dispute directly to the data furnisher.
While each method of dispute has its own
particular requirements, this discussion will
focus on those disputes that come directly
from the consumer to the data furnisher.
A consumer may dispute information in
her consumer report directly with furnishers
either orally or in writing at any time. As a
general rule, the FCRA and its Regulation V
require furnishers to conduct a reasonable
investigation if a consumer directly disputes
certain information contained in a consumer
report, such as the consumer's liability for
a credit account. The consumer must also
supply certain required information and any
supporting documentation.
Once received, the data furnisher must
do several things, including: marking the
debt as disputed, performing a reasonable
investigation, sending the consumer the
results of the investigation within a specific
time period, and notifying a CRA of any
corrections.
The FCRA does provide exceptions to
the investigation requirement for frivolous
or irrelevant disputes. The statute requires
data furnishers to make a reasonable
determination that the dispute should be
categorized as such. Examples of reasonable
determinates that the dispute may be
frivolous or irrelevant include: disputes
that are substantially the same as a previous
dispute or if the consumer fails to provide
sufficient information to investigate the
disputed information.

54

Data furnishers may want to keep in mind
that both the Consumer Financial Protection
Bureau and the Federal Trade Commission
have authority to bring an administrative
action for failure to comply with these
provisions, and may levy fines as well as
provide injunctive relief. Notably, the CFPB
and FTC have taken several actions against
companies that failed to comply with the
requirements for direct disputes under the
FCRA and Regulation V.
For more information on direct disputes
to data furnishers and the requirements
and liability surrounding them, ACA

members can review ACA's SearchPoint™
document #1522, Direct Disputes from
Consumers to Furnishers Under the FCRA,
which provides collectors with information
on direct disputes in a convenient and
searchable format.
Have you checked out the member-only ACA
SearchPoint™ library? This valuable resource
is filled with documents that put important
compliance information related to the
FDCPA, FCRA, TCPA, state laws and many
other topics at your fingertips. To access it,
visit www.acainternational.org/searchpoint.

BENEFIT
YOUR
VOICE
HEARD

Advocacy
Education
Assurance
Call Customer Care:
(800) 269-1607

There has never been
a time more critical in
the credit and collection
industry. Join your fellow
industry professionals to learn and
stand together for your business to
thrive in this new environment.

ACAINTERNATIONAL.ORG


http://www.acainternational.org/searchpoint http://www.ACAINTERNATIONAL.ORG

Table of Contents for the Digital Edition of Collector - May 2018

Upfront
Industry News
Best Practices
FYI
Collection Tips
Off to a Running Start
On the Ball
ACA International’s 2018 Convention and Expo Highlights
Calendar
Honor Roll
Building a Case for Continuous Education
Hire Like a Pro
Getting Ahead
ACA Responds to Misleading ACLU Report on Debt Collection Industry
ACA Wins Legal Challenge Against FCC’s TCPA Declaratory Ruling and Order
Compliance
ACA SearchPoint
Last Word
Collector - May 2018 - Cover1
Collector - May 2018 - Cover2
Collector - May 2018 - 1
Collector - May 2018 - 2
Collector - May 2018 - 3
Collector - May 2018 - Upfront
Collector - May 2018 - 5
Collector - May 2018 - Industry News
Collector - May 2018 - 7
Collector - May 2018 - 8
Collector - May 2018 - 9
Collector - May 2018 - 10
Collector - May 2018 - 11
Collector - May 2018 - Best Practices
Collector - May 2018 - 13
Collector - May 2018 - FYI
Collector - May 2018 - 15
Collector - May 2018 - Collection Tips
Collector - May 2018 - 17
Collector - May 2018 - Off to a Running Start
Collector - May 2018 - 19
Collector - May 2018 - 20
Collector - May 2018 - 21
Collector - May 2018 - 22
Collector - May 2018 - 23
Collector - May 2018 - On the Ball
Collector - May 2018 - 25
Collector - May 2018 - 26
Collector - May 2018 - 27
Collector - May 2018 - 28
Collector - May 2018 - 29
Collector - May 2018 - ACA International’s 2018 Convention and Expo Highlights
Collector - May 2018 - 31
Collector - May 2018 - 32
Collector - May 2018 - 33
Collector - May 2018 - 34
Collector - May 2018 - 35
Collector - May 2018 - 36
Collector - May 2018 - 37
Collector - May 2018 - 38
Collector - May 2018 - 39
Collector - May 2018 - Calendar
Collector - May 2018 - Honor Roll
Collector - May 2018 - Building a Case for Continuous Education
Collector - May 2018 - 43
Collector - May 2018 - Hire Like a Pro
Collector - May 2018 - 45
Collector - May 2018 - Getting Ahead
Collector - May 2018 - 47
Collector - May 2018 - ACA Responds to Misleading ACLU Report on Debt Collection Industry
Collector - May 2018 - 49
Collector - May 2018 - ACA Wins Legal Challenge Against FCC’s TCPA Declaratory Ruling and Order
Collector - May 2018 - 51
Collector - May 2018 - Compliance
Collector - May 2018 - 53
Collector - May 2018 - ACA SearchPoint
Collector - May 2018 - Last Word
Collector - May 2018 - 56
Collector - May 2018 - Cover3
Collector - May 2018 - Cover4
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