There are new FCRA provisions that require furnishers of information to report date of delinquency in a certain way, and also require data furnishers to ensure that the data they submit is accurate and complete. While an obligation to report disputed information already existed in the FCRA, the 1997 amendments have revised the manner in which such information must be reported to credit bureaus.
Data furnishers have two main reporting obligations under Section 623 of the FCRA:
The FCRA requires the credit reporting agency to send a notice to a data furnisher, called a "Section 611 notice", if the credit bureau receives notice of a dispute from a consumer. The credit bureau is required to notify the information provider of the dispute within 5 days of receipt from the consumer. The credit bureau must then resolve all disputes within 30 days of receipt from the consumer. The time period may be extended for up to 15 additional days if the extension is warranted.
Under section 623(b)(2), data furnishers are required to work with the credit bureau to complete its investigation within that 30-day time frame. As a data furnisher, you will need to research and respond to the dispute communicated to you by the credit bureau and still give the credit bureau time to respond to the consumer within the 30 day time limitation imposed on the credit bureau. In other words, a furnisher can expect to have 15 to 23 days to respond to a dispute investigation request from a consumer reporting agency.
It is important to note that the amended FCRA does not mandate the use of specific forms to transmit notice of a dispute to a consumer reporting agency or report back the findings of an investigation. The FCRA merely discusses the sorts of steps that must be taken to resolve a dispute. The statute states that data furnishers are required to do the following as part of the dispute resolution process:
Technically, the FCRA states that a data furnisher is only required to follow these procedures and meet these time deadlines when it receives a Section 611 notice of dispute directly from the credit bureau.
In consultation with the four credit bureaus and some creditors, the Associated Credit Bureaus has finalized its revisions to the existing Metro reporting format. The credit bureaus are currently working to implement changes to their systems, and expect to be using the new format, "Metro 2," by early fourth quarter. All information reporters will be required to send information to the credit bureaus in the new Metro 2 format by October 1, 1999. The Metro 2 format was developed as a standard for the credit reporting industry and accomplishes the following:
The Metro 2 Format was designated to allow reporting of the most accurate and complete information on consumers' credit history. It is imperative that all accounts are reported on a monthly basis and that they are reported with a final status code when they are ultimately paid or closed.
The new format is available on the World Wide Web at ACB’s Web site. In order to download the format and report, you will first need to contact a credit bureau to obtain a user identification and a password. Instructions and telephone numbers are provided on the web site.