FCRA Consumer Rights & Dispute Resolution 3 — Questions and Answers
Question 1: A furnisher receives notice of a consumer dispute forwarded by a CRA. Under FCRA §623, how many days does the furnisher generally have to investigate and report back?
- 20 days
- 30 days (Correct answer)
- 45 days
- 60 days
Correct answer: 30 days
Furnishers must investigate disputes forwarded by CRAs and report results back within 30 days, participating fully in the reinvestigation process.
Question 2: Under the FCRA's direct dispute rule, which of the following entities can a consumer send a direct dispute to?
- Only the CRA that issued the report
- Only the CFPB
- The furnisher of the disputed information (Correct answer)
- Only the creditor who took adverse action
Correct answer: The furnisher of the disputed information
The FCRA's direct dispute rule (§623(a)(8)) allows consumers to dispute information directly with the furnisher, not just with the CRA.
Question 3: A consumer disputes information directly with a furnisher. Which of the following disputes may the furnisher reasonably determine to be outside the scope of direct dispute rights?
- A dispute about the accuracy of the account balance
- A dispute about the accuracy of a payment rating
- A dispute about the factual accuracy of a public record
- A dispute about the consumer's desire to obtain a lower interest rate (Correct answer)
Correct answer: A dispute about the consumer's desire to obtain a lower interest rate
Direct dispute rights cover factual accuracy of information in consumer reports; disputes related to desired outcomes (like interest rates) are not factual disputes and fall outside the direct dispute framework.
Question 4: After a reinvestigation, the CRA notifies a consumer of the results. Which of the following must be included in that notification?
- The consumer's FICO score and how it changed
- Contact information for the CFPB only
- A statement that the consumer may add a dispute statement and the name of the furnisher (Correct answer)
- The CRA's proprietary algorithm for dispute resolution
Correct answer: A statement that the consumer may add a dispute statement and the name of the furnisher
The CRA's reinvestigation results notice must include a statement that the consumer may add a dispute statement and the name, address, and phone number of the furnisher.
Question 5: Under the FCRA, when a consumer successfully disputes an item and it is deleted, can a furnisher re-report that same item?
- Yes, immediately if the furnisher verifies the information
- Yes, but only after 30 days
- No, deleted items can never be re-reported
- Yes, but the CRA must notify the consumer before reinserting and provide a free report (Correct answer)
Correct answer: Yes, but the CRA must notify the consumer before reinserting and provide a free report
A deleted item may only be reinserted if the furnisher certifies accuracy, but the CRA must notify the consumer within 5 business days before reinsertion and provide a free updated report.
Question 6: Which FCRA provision requires consumer reporting agencies to maintain a toll-free number for consumers to dispute information?
- §604 — Permissible Purposes
- §605 — Obsolescence
- §611 — Procedure in Case of Disputed Accuracy (Correct answer)
- §616 — Civil Liability for Willful Noncompliance
Correct answer: §611 — Procedure in Case of Disputed Accuracy
FCRA §611 governs the procedures CRAs must follow when accuracy is disputed, including maintaining accessible channels like toll-free numbers for consumers.
Question 7: A consumer's dispute to a CRA includes documentation proving an account does not belong to them. What is the CRA's obligation regarding the furnisher during reinvestigation?
- The CRA may ignore the furnisher if the consumer provides enough documentation
- The CRA must promptly forward all relevant consumer-submitted materials to the furnisher (Correct answer)
- The CRA must wait for the furnisher to contact them first
- The CRA must file a report with the FTC before notifying the furnisher
Correct answer: The CRA must promptly forward all relevant consumer-submitted materials to the furnisher
CRAs must promptly convey all relevant information, including documentation submitted by the consumer, to the furnisher as part of the reinvestigation notice.
FCRA Consumer Rights & Dispute Resolution 3
A furnisher receives notice of a consumer dispute forwarded by a CRA.
Under FCRA §623, how many days does the furnisher generally have to investigate and report back?