15 U.S.C. § 1681s-2 : US Code - Section 1681S-2: Responsibilities of furnishers of information to consumer reporting agencies

Search 15 U.S.C. § 1681s-2 : US Code - Section 1681S-2: Responsibilities of furnishers of information to consumer reporting agencies

    (a) Duty of furnishers of information to provide accurate
      information
      (1) Prohibition
        (A) Reporting information with actual knowledge of errors
          A person shall not furnish any information relating to a
        consumer to any consumer reporting agency if the person knows
        or has reasonable cause to believe that the information is
        inaccurate.
        (B) Reporting information after notice and confirmation of
          errors
          A person shall not furnish information relating to a consumer
        to any consumer reporting agency if - 
            (i) the person has been notified by the consumer, at the
          address specified by the person for such notices, that
          specific information is inaccurate; and
            (ii) the information is, in fact, inaccurate.
        (C) No address requirement
          A person who clearly and conspicuously specifies to the
        consumer an address for notices referred to in subparagraph (B)
        shall not be subject to subparagraph (A); however, nothing in
        subparagraph (B) shall require a person to specify such an
        address.
        (D) Definition
          For purposes of subparagraph (A), the term "reasonable cause
        to believe that the information is inaccurate" means having
        specific knowledge, other than solely allegations by the
        consumer, that would cause a reasonable person to have
        substantial doubts about the accuracy of the information.
      (2) Duty to correct and update information
        A person who - 
          (A) regularly and in the ordinary course of business
        furnishes information to one or more consumer reporting
        agencies about the person's transactions or experiences with
        any consumer; and
          (B) has furnished to a consumer reporting agency information
        that the person determines is not complete or accurate,

      shall promptly notify the consumer reporting agency of that
      determination and provide to the agency any corrections to that
      information, or any additional information, that is necessary to
      make the information provided by the person to the agency
      complete and accurate, and shall not thereafter furnish to the
      agency any of the information that remains not complete or
      accurate.
      (3) Duty to provide notice of dispute
        If the completeness or accuracy of any information furnished by
      any person to any consumer reporting agency is disputed to such
      person by a consumer, the person may not furnish the information
      to any consumer reporting agency without notice that such
      information is disputed by the consumer.
      (4) Duty to provide notice of closed accounts
        A person who regularly and in the ordinary course of business
      furnishes information to a consumer reporting agency regarding a
      consumer who has a credit account with that person shall notify
      the agency of the voluntary closure of the account by the
      consumer, in information regularly furnished for the period in
      which the account is closed.
      (5) Duty to provide notice of delinquency of accounts
        (A) In general
          A person who furnishes information to a consumer reporting
        agency regarding a delinquent account being placed for
        collection, charged to profit or loss, or subjected to any
        similar action shall, not later than 90 days after furnishing
        the information, notify the agency of the date of delinquency
        on the account, which shall be the month and year of the
        commencement of the delinquency on the account that immediately
        preceded the action.
        (B) Rule of construction
          For purposes of this paragraph only, and provided that the
        consumer does not dispute the information, a person that
        furnishes information on a delinquent account that is placed
        for collection, charged for profit or loss, or subjected to any
        similar action, complies with this paragraph, if - 
            (i) the person reports the same date of delinquency as that
          provided by the creditor to which the account was owed at the
          time at which the commencement of the delinquency occurred,
          if the creditor previously reported that date of delinquency
          to a consumer reporting agency;
            (ii) the creditor did not previously report the date of
          delinquency to a consumer reporting agency, and the person
          establishes and follows reasonable procedures to obtain the
          date of delinquency from the creditor or another reliable
          source and reports that date to a consumer reporting agency
          as the date of delinquency; or
            (iii) the creditor did not previously report the date of
          delinquency to a consumer reporting agency and the date of
          delinquency cannot be reasonably obtained as provided in
          clause (ii), the person establishes and follows reasonable
          procedures to ensure the date reported as the date of
          delinquency precedes the date on which the account is placed
          for collection, charged to profit or loss, or subjected to
          any similar action, and reports such date to the credit
          reporting agency.
      (6) Duties of furnishers upon notice of identity theft-related
        information
        (A) Reasonable procedures
          A person that furnishes information to any consumer reporting
        agency shall have in place reasonable procedures to respond to
        any notification that it receives from a consumer reporting
        agency under section 1681c-2 of this title relating to
        information resulting from identity theft, to prevent that
        person from refurnishing such blocked information.
        (B) Information alleged to result from identity theft
          If a consumer submits an identity theft report to a person
        who furnishes information to a consumer reporting agency at the
        address specified by that person for receiving such reports
        stating that information maintained by such person that
        purports to relate to the consumer resulted from identity
        theft, the person may not furnish such information that
        purports to relate to the consumer to any consumer reporting
        agency, unless the person subsequently knows or is informed by
        the consumer that the information is correct.
      (7) Negative information
        (A) Notice to consumer required
          (i) In general
            If any financial institution that extends credit and
          regularly and in the ordinary course of business furnishes
          information to a consumer reporting agency described in
          section 1681a(p) of this title furnishes negative information
          to such an agency regarding credit extended to a customer,
          the financial institution shall provide a notice of such
          furnishing of negative information, in writing, to the
          customer.
          (ii) Notice effective for subsequent submissions
            After providing such notice, the financial institution may
          submit additional negative information to a consumer
          reporting agency described in section 1681a(p) of this title
          with respect to the same transaction, extension of credit,
          account, or customer without providing additional notice to
          the customer.
        (B) Time of notice
          (i) In general
            The notice required under subparagraph (A) shall be
          provided to the customer prior to, or no later than 30 days
          after, furnishing the negative information to a consumer
          reporting agency described in section 1681a(p) of this title.
          (ii) Coordination with new account disclosures
            If the notice is provided to the customer prior to
          furnishing the negative information to a consumer reporting
          agency, the notice may not be included in the initial
          disclosures provided under section 1637(a) of this title.
        (C) Coordination with other disclosures
          The notice required under subparagraph (A) - 
            (i) may be included on or with any notice of default, any
          billing statement, or any other materials provided to the
          customer; and
            (ii) must be clear and conspicuous.
        (D) Model disclosure
          (i) Duty of Bureau
            The Bureau shall prescribe a brief model disclosure that a
          financial institution may use to comply with subparagraph
          (A), which shall not exceed 30 words.
          (ii) Use of model not required
            No provision of this paragraph may be construed to require
          a financial institution to use any such model form prescribed
          by the Bureau.
          (iii) Compliance using model
            A financial institution shall be deemed to be in compliance
          with subparagraph (A) if the financial institution uses any
          model form prescribed by the Bureau under this subparagraph,
          or the financial institution uses any such model form and
          rearranges its format.
        (E) Use of notice without submitting negative information
          No provision of this paragraph shall be construed as
        requiring a financial institution that has provided a customer
        with a notice described in subparagraph (A) to furnish negative
        information about the customer to a consumer reporting agency.
        (F) Safe harbor
          A financial institution shall not be liable for failure to
        perform the duties required by this paragraph if, at the time
        of the failure, the financial institution maintained reasonable
        policies and procedures to comply with this paragraph or the
        financial institution reasonably believed that the institution
        is prohibited, by law, from contacting the consumer.
        (G) Definitions
          For purposes of this paragraph, the following definitions
        shall apply:
          (i) Negative information
            The term "negative information" means information
          concerning a customer's delinquencies, late payments,
          insolvency, or any form of default.
          (ii) Customer; financial institution
            The terms "customer" and "financial institution" have the
          same meanings as in section 6809 of this title.
      (8) Ability of consumer to dispute information directly with
        furnisher
        (A) In general
          The Bureau, in consultation with the Federal Trade
        Commission, the Federal banking agencies, and the National
        Credit Union Administration, shall prescribe regulations that
        shall identify the circumstances under which a furnisher shall
        be required to reinvestigate a dispute concerning the accuracy
        of information contained in a consumer report on the consumer,
        based on a direct request of a consumer.
        (B) Considerations
          In prescribing regulations under subparagraph (A), the
        agencies shall weigh - 
            (i) the benefits to consumers with the costs on furnishers
          and the credit reporting system;
            (ii) the impact on the overall accuracy and integrity of
          consumer reports of any such requirements;
            (iii) whether direct contact by the consumer with the
          furnisher would likely result in the most expeditious
          resolution of any such dispute; and
            (iv) the potential impact on the credit reporting process
          if credit repair organizations, as defined in section
          1679a(3) of this title, including entities that would be a
          credit repair organization, but for section 1679a(3)(B)(i) of
          this title, are able to circumvent the prohibition in
          subparagraph (G).
        (C) Applicability
          Subparagraphs (D) through (G) shall apply in any circumstance
        identified under the regulations promulgated under subparagraph
        (A).
        (D) Submitting a notice of dispute
          A consumer who seeks to dispute the accuracy of information
        shall provide a dispute notice directly to such person at the
        address specified by the person for such notices that - 
            (i) identifies the specific information that is being
          disputed;
            (ii) explains the basis for the dispute; and
            (iii) includes all supporting documentation required by the
          furnisher to substantiate the basis of the dispute.
        (E) Duty of person after receiving notice of dispute
          After receiving a notice of dispute from a consumer pursuant
        to subparagraph (D), the person that provided the information
        in dispute to a consumer reporting agency shall - 
            (i) conduct an investigation with respect to the disputed
          information;
            (ii) review all relevant information provided by the
          consumer with the notice;
            (iii) complete such person's investigation of the dispute
          and report the results of the investigation to the consumer
          before the expiration of the period under section 1681i(a)(1)
          of this title within which a consumer reporting agency would
          be required to complete its action if the consumer had
          elected to dispute the information under that section; and
            (iv) if the investigation finds that the information
          reported was inaccurate, promptly notify each consumer
          reporting agency to which the person furnished the inaccurate
          information of that determination and provide to the agency
          any correction to that information that is necessary to make
          the information provided by the person accurate.
        (F) Frivolous or irrelevant dispute
          (i) In general
            This paragraph shall not apply if the person receiving a
          notice of a dispute from a consumer reasonably determines
          that the dispute is frivolous or irrelevant, including - 
              (I) by reason of the failure of a consumer to provide
            sufficient information to investigate the disputed
            information; or
              (II) the submission by a consumer of a dispute that is
            substantially the same as a dispute previously submitted by
            or for the consumer, either directly to the person or
            through a consumer reporting agency under subsection (b) of
            this section, with respect to which the person has already
            performed the person's duties under this paragraph or
            subsection (b) of this section, as applicable.
          (ii) Notice of determination
            Upon making any determination under clause (i) that a
          dispute is frivolous or irrelevant, the person 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 person.
          (iii) Contents of notice
            A notice under clause (ii) shall include - 
              (I) the reasons for the determination under clause (i);
            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.
        (G) Exclusion of credit repair organizations
          This paragraph shall not apply if the notice of the dispute
        is submitted by, is prepared on behalf of the consumer by, or
        is submitted on a form supplied to the consumer by, a credit
        repair organization, as defined in section 1679a(3) of this
        title, or an entity that would be a credit repair organization,
        but for section 1679a(3)(B)(i) of this title.
      (9) Duty to provide notice of status as medical information
        furnisher
        A person whose primary business is providing medical services,
      products, or devices, or the person's agent or assignee, who
      furnishes information to a consumer reporting agency on a
      consumer shall be considered a medical information furnisher for
      purposes of this subchapter, and shall notify the agency of such
      status.
    (b) Duties of furnishers of information upon notice of dispute
      (1) In general
        After receiving notice pursuant to section 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 consumer
        reporting agency pursuant to section 1681i(a)(2) of this title;
          (C) report the results of the investigation to the consumer
        reporting agency;
          (D) if the investigation finds that the information is
        incomplete or inaccurate, report those results to all other
        consumer reporting agencies 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 consumer reporting agency 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.
      (2) Deadline
        A person shall complete all investigations, reviews, and
      reports required under paragraph (1) regarding information
      provided by the person to a consumer reporting agency, before the
      expiration of the period under section 1681i(a)(1) of this title
      within which the consumer reporting agency is required to
      complete actions required by that section regarding that
      information.
    (c) Limitation on liability
      Except as provided in section 1681s(c)(1)(B) of this title,
    sections 1681n and 1681o of this title do not apply to any
    violation of - 
        (1) subsection (a) of this section, including any regulations
      issued thereunder;
        (2) subsection (e) of this section, except that nothing in this
      paragraph shall limit, expand, or otherwise affect liability
      under section 1681n or 1681o of this title, as applicable, for
      violations of subsection (b) of this section; or
        (3) subsection (e) of section 1681m of this title.
    (d) Limitation on enforcement
      The provisions of law described in paragraphs (1) through (3) of
    subsection (c) of this section (other than with respect to the
    exception described in paragraph (2) of subsection (c) of this
    section) shall be enforced exclusively as provided under section
    1681s of this title by the Federal agencies and officials and the
    State officials identified in section 1681s of this title.
    (e) Accuracy guidelines and regulations required
      (1) Guidelines
        The Bureau shall, with respect to persons or entities that are
      subject to the enforcement authority of the Bureau under section
      1681s of this title - 
          (A) establish and maintain guidelines for use by each person
        that furnishes information to a consumer reporting agency
        regarding the accuracy and integrity of the information
        relating to consumers that such entities furnish to consumer
        reporting agencies, and update such guidelines as often as
        necessary; and
          (B) prescribe regulations requiring each person that
        furnishes information to a consumer reporting agency to
        establish reasonable policies and procedures for implementing
        the guidelines established pursuant to subparagraph (A).
      (2) Criteria
        In developing the guidelines required by paragraph (1)(A), the
      Bureau shall - 
          (A) identify patterns, practices, and specific forms of
        activity that can compromise the accuracy and integrity of
        information furnished to consumer reporting agencies;
          (B) review the methods (including technological means) used
        to furnish information relating to consumers to consumer
        reporting agencies;
          (C) determine whether persons that furnish information to
        consumer reporting agencies maintain and enforce policies to
        ensure the accuracy and integrity of information furnished to
        consumer reporting agencies; and
          (D) examine the policies and processes that persons that
        furnish information to consumer reporting agencies employ to
        conduct reinvestigations and correct inaccurate information
        relating to consumers that has been furnished to consumer
        reporting agencies.