Skip to main content

Search

Fair Credit Reporting: 4.1.3.4.4 CFPB complaints

The CFPB began accepting credit and consumer reporting complaints in October 2012.94 Credit and consumer reporting has been by far the top category of complaints to the CFPB, which received over 978,000 such complaints in 2022, constituting 75% of the overall complaints received by the Bureau that year.95 Between January 2020 and September 2021, the CFPB received 700,000 complaints specifically against th

Fair Credit Reporting: 4.1.3.6 Internal Accuracy Analyses from Consumer Reporting Agencies

The nationwide consumer reporting agencies maintain vast amounts of consumer credit information. Their business depends not just on data collection, but as well on its analysis and evaluation. Accordingly, the nationwide CRAs conduct their own internal audits or analyses of the accuracy of their data. While generally not publicly available, some practitioners have made an effort in litigation and discovery to obtain these internal audits and analyses.

Fair Credit Reporting: 4.2.1.4 Definition of Accuracy for Furnishers

While the FCRA itself does not define what is “accuracy,” Regulation V includes a definition for purposes of the furnisher accuracy144 and direct dispute requirements.145 This definition defines “accuracy” to mean that information a furnisher provides to a CRA about an account or other relationship with the consumer:146

Fair Credit Reporting: 4.2.2 Accuracy Standard Applies to Report Actually Supplied to User

It is important to determine the specific information that was actually reported to a user and the accuracy of that information in the form it was reported to the user. The plain language, paper version of a consumer report usually produced in litigation, with easily-read narratives, is not the manner in which the “Big Three” nationwide CRAs typically supply a consumer report to users.150

Fair Credit Reporting: 4.2.3 Accuracy Requires Common Understanding of Information

Ambiguity in information supplied to users can create inaccuracies in consumer reports that are actionable under the FCRA. For example, in Cassara v. DAC Services, a truck driver history database used an overly broad definition of what constituted an “accident,” leading employers to use different standards to report accidents. The Tenth Circuit held that these discrepancies raised a genuine issue as to the accuracy of such reports, stating:

Fair Credit Reporting: 4.2.4.1.1 Majority of circuits have adopted a “maximum possible accuracy” approach

The FCRA requires more than technical or literal accuracy; it requires “maximum possible accuracy of the information concerning the individual about whom the report relates.”162 As the Third Circuit has noted, “the distinction between ‘accuracy’ and ‘maximum possible accuracy’ is not nearly as subtle as may at first appear, it is in fact quite dramatic.”163 And as the Eleventh Circuit observed “[t]he words ‘maximum’ and ‘possible’ mean ‘greatest in quantity or highest in degree attainable’ and ‘

Fair Credit Reporting: 4.2.4.3 Technical Accuracy Defense Is Contrary to the Intent and Legislative History of the FCRA

Ironically, the phrase “technically accurate” was first used as an example of the abuses to be covered by the FCRA. Introducing the bill which was to become the FCRA, Senator Proxmire noted: “In addition to supplying inaccurate information, a second major abuse of credit reporting agencies is the dissemination of irrelevant information—that is, the information may be technically accurate but it may not serve any useful purposes.”214

Fair Credit Reporting: 4.2.4.4 Technical Accuracy Defense Is Contrary to FTC Interpretations of the FCRA

The cases permitting a “technically accurate” standard also make no sense when taken in conjunction with the FTC’s position that CRAs must utilize procedures to ensure that information is complete and must correct incomplete information if disputed.216 The same incompleteness should also lead to an inaccuracy finding triggering the consumer’s ability to challenge the CRA procedures.217

Fair Credit Reporting: 4.2.5 Information Must Relate to the Consumer

Information that does not pertain to the consumer upon whom a report is furnished is not accurate under the FCRA.224 A consumer report is one which “bear[s] on a consumer’s credit worthiness, credit standing, credit capacity,” and other individualized characteristics and which is to be used “as a factor in establishing the consumer’s eligibility” for credit, employment, and other permissible purposes.225 The CRA must follow procedures to “assure maximum possible accuracy of the

Fair Credit Reporting: 4.2.6 Consumer Reporting Agency May Not Report Unverifiable Information

While a CRA is entitled to presume that its furnisher is otherwise a reliable source, once it determines that a credit item cannot be “verified,” it is no longer entitled to report it.231 Typically, CRAs hold fast to the belief that they are entitled to report any information that cannot be conclusively determined to be inaccurate. This presumption is completely contrary to that demanded by the FCRA.

Credit Discrimination: 4.4.3 Credit Reporting Agency Files

Information collected on an applicant by a credit reporting agency is useful for several reasons. If information from a credit reporting agency is given by the creditor as the grounds for denial of credit, it is useful to check to see if the creditor in fact contacted the agency before denying credit and what the applicant’s record indicates. In any case, as it is likely that the creditor will bring up that record as a defense,191 it will be important for the applicant to know what the record contains.

Fair Credit Reporting: 9.2.2.1.2 Appropriate proof of identity

A prerequisite to obtaining any of the three alerts discussed below is that the consumer must provide the CRA with “appropriate proof of identity.”49 Regulation V requires CRAs to develop and implement “reasonable requirements” to verify identity.50 In developing these requirements, the CRAs must:51

Fair Credit Reporting: 9.2.3.2 Placement of a Security Freeze; Confirmation

Upon a consumer’s direct request,109 and after the nationwide CRA receives “proper identification,”110 a nationwide CRA must freeze access to the consumer’s report at no charge.111 A security freeze means, for purposes of the FCRA, “a restriction that prohibits a consumer reporting agency from disclosing the contents of a consumer report . . . to any person requesting [it].”112

Fair Credit Reporting: 3.4.4 Free Credit Monitoring for Active Duty Military Consumers

Despite well-documented problems with credit monitoring, Congress amended the FCRA in 2018 to require the nationwide consumer reporting agencies to provide a free version of the product to active duty military consumers.364 The Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) of 2018 requires the nationwide CRAs to provide a “free electronic credit monitoring service” to any consumer who provides appropriate proof that they are an active duty military consumer,365 which

Fair Credit Reporting: 3.5.2.4 Form of the Request

A consumer’s inquiry should clearly be a request; a casual inquiry to a CRA’s telephone receptionist asking generally what is going on is not a proper request for disclosure.399 However, the request need not be specifically stated as a request for a report or a “file disclosure.”400 For example, a request to a CRA for an explanation as to why a user has taken an adverse action may be enough to constitute a request for disclosure.401

Consumer Class Actions: 10.7.2.1 Generally

There is disagreement among federal courts on the criteria that control whether an issue class can be certified under Rule 23(c)(4) in cases seeking certification under Rule 23(b)(3). The main conflict among courts is how the predominance and superiority requirements of Rule 23(b)(3) apply to issue classes. Four circuits—the Second, Fourth, Sixth, and Ninth—apply the Rule 23(b)(3) predominance and superiority prongs to the common issues that have been identified for class treatment under Rule 23(c)(4).

Bankruptcy Basics: Statement of Residential Tenants.

If the debtor rents their residence, they should check the box indicating that. If no court judgment for possession has been entered against the debtor before the bankruptcy petition is filed, the debtor can then respond to the second portion of this question by checking the box indicating “no.” If a court judgment for possession has been entered against the debtor before the petition is filed, the debtor should check the second “yes” box in this section and must also submit the separate form entitled Initial Statement About an Eviction Judgment Against You (Official Form 101A).

Bankruptcy Basics: Statistical/Reporting Information

Part 6 of the petition asks questions for statistical and reporting purposes. The first question is whether the debtor’s debts are primarily consumer debts. Section 707(b) and the “means test” apply only to debtors whose debts are primarily consumer debts. If the debtor does not have primarily consumer debts and checks the box indicating that the debts are primarily business debts, the debtor may submit Official Form 122A-1Supp and check the appropriate box in Part 1 of that form. In the sample case, the majority of Ms.