15 U.S.C. § 1681i : US Code - Section 1681I: Procedure in case of disputed accuracy

Search 15 U.S.C. § 1681i : US Code - Section 1681I: Procedure in case of disputed accuracy

(a) Reinvestigations of disputed information
(1) Reinvestigation required
(A) In general
Subject to subsection (f) of this section, if the
completeness or accuracy of any item of information contained
in a consumer's file at a consumer reporting agency is disputed
by the consumer and the consumer notifies the agency directly,
or indirectly through a reseller, of such dispute, the agency
shall, free of charge, conduct a reasonable reinvestigation to
determine whether the disputed information is inaccurate and
record the current status of the disputed information, or
delete the item from the file in accordance with paragraph (5),
before the end of the 30-day period beginning on the date on
which the agency receives the notice of the dispute from the
consumer or reseller.
(B) Extension of period to reinvestigate
Except as provided in subparagraph (C), the 30-day period
described in subparagraph (A) may be extended for not more than
15 additional days if the consumer reporting agency receives
information from the consumer during that 30-day period that is
relevant to the reinvestigation.
(C) Limitations on extension of period to reinvestigate
Subparagraph (B) shall not apply to any reinvestigation in
which, during the 30-day period described in subparagraph (A),
the information that is the subject of the reinvestigation is
found to be inaccurate or incomplete or the consumer reporting
agency determines that the information cannot be verified.
(2) Prompt notice of dispute to furnisher of information
(A) In general
Before the expiration of the 5-business-day period beginning
on the date on which a consumer reporting agency receives
notice of a dispute from any consumer or a reseller in
accordance with paragraph (1), the agency shall provide
notification of the dispute to any person who provided any item
of information in dispute, at the address and in the manner
established with the person. The notice shall include all
relevant information regarding the dispute that the agency has
received from the consumer or reseller.
(B) Provision of other information
The consumer reporting agency shall promptly provide to the
person who provided the information in dispute all relevant
information regarding the dispute that is received by the
agency from the consumer or the reseller after the period
referred to in subparagraph (A) and before the end of the
period referred to in paragraph (1)(A).
(3) Determination that dispute is frivolous or irrelevant
(A) In general
Notwithstanding paragraph (1), a consumer reporting agency
may terminate a reinvestigation of information disputed by a
consumer under that paragraph if the agency reasonably
determines that the dispute by the consumer is frivolous or
irrelevant, including by reason of a failure by a consumer to
provide sufficient information to investigate the disputed
information.
(B) Notice of determination
Upon making any determination in accordance with subparagraph
(A) that a dispute is frivolous or irrelevant, a consumer
reporting agency shall notify the consumer of such
determination not later than 5 business days after making such
determination, by mail or, if authorized by the consumer for
that purpose, by any other means available to the agency.
(C) Contents of notice
A notice under subparagraph (B) shall include -
(i) the reasons for the determination under subparagraph
(A); and
(ii) identification of any information required to
investigate the disputed information, which may consist of a
standardized form describing the general nature of such
information.
(4) Consideration of consumer information
In conducting any reinvestigation under paragraph (1) with
respect to disputed information in the file of any consumer, the
consumer reporting agency shall review and consider all relevant
information submitted by the consumer in the period described in
paragraph (1)(A) with respect to such disputed information.
(5) Treatment of inaccurate or unverifiable information
(A) In general
If, after any reinvestigation under paragraph (1) of any
information disputed by a consumer, an item of the information
is found to be inaccurate or incomplete or cannot be verified,
the consumer reporting agency shall -
(i) promptly delete that item of information from the file
of the consumer, or modify that item of information, as
appropriate, based on the results of the reinvestigation; and
(ii) promptly notify the furnisher of that information that
the information has been modified or deleted from the file of
the consumer.
(B) Requirements relating to reinsertion of previously deleted
material
(i) Certification of accuracy of information
If any information is deleted from a consumer's file
pursuant to subparagraph (A), the information may not be
reinserted in the file by the consumer reporting agency
unless the person who furnishes the information certifies
that the information is complete and accurate.
(ii) Notice to consumer
If any information that has been deleted from a consumer's
file pursuant to subparagraph (A) is reinserted in the file,
the consumer reporting agency shall notify the consumer of
the reinsertion in writing not later than 5 business days
after the reinsertion or, if authorized by the consumer for
that purpose, by any other means available to the agency.
(iii) Additional information
As part of, or in addition to, the notice under clause
(ii), a consumer reporting agency shall provide to a consumer
in writing not later than 5 business days after the date of
the reinsertion -
(I) a statement that the disputed information has been
reinserted;
(II) the business name and address of any furnisher of
information contacted and the telephone number of such
furnisher, if reasonably available, or of any furnisher of
information that contacted the consumer reporting agency,
in connection with the reinsertion of such information; and
(III) a notice that the consumer has the right to add a
statement to the consumer's file disputing the accuracy or
completeness of the disputed information.
(C) Procedures to prevent reappearance
A consumer reporting agency shall maintain reasonable
procedures designed to prevent the reappearance in a consumer's
file, and in consumer reports on the consumer, of information
that is deleted pursuant to this paragraph (other than
information that is reinserted in accordance with subparagraph
(B)(i)).
(D) Automated reinvestigation system
Any consumer reporting agency that compiles and maintains
files on consumers on a nationwide basis shall implement an
automated system through which furnishers of information to
that consumer reporting agency may report the results of a
reinvestigation that finds incomplete or inaccurate information
in a consumer's file to other such consumer reporting agencies.
(6) Notice of results of reinvestigation
(A) In general
A consumer reporting agency shall provide written notice to a
consumer of the results of a reinvestigation under this
subsection not later than 5 business days after the completion
of the reinvestigation, by mail or, if authorized by the
consumer for that purpose, by other means available to the
agency.
(B) Contents
As part of, or in addition to, the notice under subparagraph
(A), a consumer reporting agency shall provide to a consumer in
writing before the expiration of the 5-day period referred to
in subparagraph (A) -
(i) a statement that the reinvestigation is completed;
(ii) a consumer report that is based upon the consumer's
file as that file is revised as a result of the
reinvestigation;
(iii) a notice that, if requested by the consumer, a
description of the procedure used to determine the accuracy
and completeness of the information shall be provided to the
consumer by the agency, including the business name and
address of any furnisher of information contacted in
connection with such information and the telephone number of
such furnisher, if reasonably available;
(iv) a notice that the consumer has the right to add a
statement to the consumer's file disputing the accuracy or
completeness of the information; and
(v) a notice that the consumer has the right to request
under subsection (d) of this section that the consumer
reporting agency furnish notifications under that subsection.
(7) Description of reinvestigation procedure
A consumer reporting agency shall provide to a consumer a
description referred to in paragraph (6)(B)(iii) by not later
than 15 days after receiving a request from the consumer for that
description.
(8) Expedited dispute resolution
If a dispute regarding an item of information in a consumer's
file at a consumer reporting agency is resolved in accordance
with paragraph (5)(A) by the deletion of the disputed information
by not later than 3 business days after the date on which the
agency receives notice of the dispute from the consumer in
accordance with paragraph (1)(A), then the agency shall not be
required to comply with paragraphs (2), (6), and (7) with respect
to that dispute if the agency -
(A) provides prompt notice of the deletion to the consumer by
telephone;
(B) includes in that notice, or in a written notice that
accompanies a confirmation and consumer report provided in
accordance with subparagraph (C), a statement of the consumer's
right to request under subsection (d) of this section that the
agency furnish notifications under that subsection; and
(C) provides written confirmation of the deletion and a copy
of a consumer report on the consumer that is based on the
consumer's file after the deletion, not later than 5 business
days after making the deletion.
(b) Statement of dispute
If the reinvestigation does not resolve the dispute, the consumer
may file a brief statement setting forth the nature of the dispute.
The consumer reporting agency may limit such statements to not more
than one hundred words if it provides the consumer with assistance
in writing a clear summary of the dispute.
(c) 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.
(d) Notification of deletion of disputed information
Following any deletion of information which is found to be
inaccurate or whose accuracy can no longer be verified or any
notation as to disputed information, the consumer reporting agency
shall, at the request of the consumer, furnish notification that
the item has been deleted or the statement, codification or summary
pursuant to subsection (b) or (c) of this section to any person
specifically designated by the consumer who has within two years
prior thereto received a consumer report for employment purposes,
or within six months prior thereto received a consumer report for
any other purpose, which contained the deleted or disputed
information.
(e) Treatment of complaints and report to Congress
(1) In general
The Commission shall -
(A) compile all complaints that it receives that a file of a
consumer that is maintained by a consumer reporting agency
described in section 1681a(p) of this title contains incomplete
or inaccurate information, with respect to which, the consumer
appears to have disputed the completeness or accuracy with the
consumer reporting agency or otherwise utilized the procedures
provided by subsection (a) of this section; and
(B) transmit each such complaint to each consumer reporting
agency involved.
(2) Exclusion
Complaints received or obtained by the Commission pursuant to
its investigative authority under the Federal Trade Commission
Act [15 U.S.C. 41 et seq.] shall not be subject to paragraph (1).
(3) Agency responsibilities
Each consumer reporting agency described in section 1681a(p) of
this title that receives a complaint transmitted by the
Commission pursuant to paragraph (1) shall -
(A) review each such complaint to determine whether all legal
obligations imposed on the consumer reporting agency under this
subchapter (including any obligation imposed by an applicable
court or administrative order) have been met with respect to
the subject matter of the complaint;
(B) provide reports on a regular basis to the Commission
regarding the determinations of and actions taken by the
consumer reporting agency, if any, in connection with its
review of such complaints; and
(C) maintain, for a reasonable time period, records regarding
the disposition of each such complaint that is sufficient to
demonstrate compliance with this subsection.
(4) Rulemaking authority
The Commission may prescribe regulations, as appropriate to
implement this subsection.
(5) Annual report
The Commission shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives an annual
report regarding information gathered by the Commission under
this subsection.
(f) Reinvestigation requirement applicable to resellers
(1) Exemption from general reinvestigation requirement
Except as provided in paragraph (2), a reseller shall be exempt
from the requirements of this section.
(2) Action required upon receiving notice of a dispute
If a reseller receives a notice from a consumer of a dispute
concerning the completeness or accuracy of any item of
information contained in a consumer report on such consumer
produced by the reseller, the reseller shall, within 5 business
days of receiving the notice, and free of charge -
(A) determine whether the item of information is incomplete
or inaccurate as a result of an act or omission of the
reseller; and
(B) if -
(i) the reseller determines that the item of information is
incomplete or inaccurate as a result of an act or omission of
the reseller, not later than 20 days after receiving the
notice, correct the information in the consumer report or
delete it; or
(ii) if the reseller determines that the item of
information is not incomplete or inaccurate as a result of an
act or omission of the reseller, convey the notice of the
dispute, together with all relevant information provided by
the consumer, to each consumer reporting agency that provided
the reseller with the information that is the subject of the
dispute, using an address or a notification mechanism
specified by the consumer reporting agency for such notices.
(3) Responsibility of consumer reporting agency to notify
consumer through reseller
Upon the completion of a reinvestigation under this section of
a dispute concerning the completeness or accuracy of any
information in the file of a consumer by a consumer reporting
agency that received notice of the dispute from a reseller under
paragraph (2) -
(A) the notice by the consumer reporting agency under
paragraph (6), (7), or (8) of subsection (a) of this section
shall be provided to the reseller in lieu of the consumer; and
(B) the reseller shall immediately reconvey such notice to
the consumer, including any notice of a deletion by telephone
in the manner required under paragraph (8)(A).
(4) Reseller reinvestigations
No provision of this subsection shall be construed as
prohibiting a reseller from conducting a reinvestigation of a
consumer dispute directly.