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Facta - Answer To Frivolous Disputes
I don't know if this has been talked about before but here it goes:
One reason asking for validation might not have worked is that prior to FACTA,and effective 12-1-04, there was no way to really dispute with "furnishers of information". It appears there is no requirement for CRA's to "validate." There is a requirement to "investigate." maybe this is a good reason why they just determine our letters to be frivolous "validation" letters. It appears that it's the furnisher's right, under FACTA, to declare disputes frivolous or irrelevant with good reason.
CHECK OUT THE FOLLOWING AMENDMENTS TO FCRA:
b) DUTY OF FURNISHERS TO PROVIDE ACCURATE INFORMATION- Section 623(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)(1)) is amended--
(1) in subparagraph (A), by striking 'knows or consciously avoids knowing that the information is inaccurate' and inserting 'knows or has reasonable cause to believe that the information is inaccurate'; and
(2) by adding at the end the following:
'(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.'.
(c) ABILITY OF CONSUMER TO DISPUTE INFORMATION DIRECTLY WITH FURNISHER- Section 623(a) of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)), as amended by this Act, is amended by adding at the end the following:
'(8) ABILITY OF CONSUMER TO DISPUTE INFORMATION DIRECTLY WITH FURNISHER-
'(A) IN GENERAL- The Federal banking agencies, the National Credit Union Administration, and the Commission shall jointly 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 403(3), including entities that would be a credit repair organization, but for section 403(3)(B)(i), 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 611(a)(1) 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), with respect to which the person has already performed the person's duties under this paragraph or subsection (b), 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.
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