PCS Credit Bureau Reporting Accuracy 2 — Questions and Answers
Question 1: Under the FCRA, how long does a furnisher have to investigate a consumer dispute after receiving notice from a CRA?
- 15 days
- 30 days (Correct answer)
- 45 days
- 60 days
Correct answer: 30 days
Furnishers must complete their investigation within 30 days of receiving a dispute notice from a CRA, extendable to 45 days if the consumer provides additional information.
Question 2: What term describes the practice of a debt collector re-aging an account to make it appear more recent than it actually is?
- Account refreshing
- Re-aging (Correct answer)
- Balance updating
- Status resetting
Correct answer: Re-aging
Re-aging is the illegal practice of changing the date of first delinquency to extend the reporting period beyond the legally permitted 7 years.
Question 3: Which Metro 2 field is specifically used to report the original creditor's name when a debt has been sold to a collector?
- Original Creditor Name field (K1 segment) (Correct answer)
- Account Number field
- Creditor Classification Code
- Special Comment Code
Correct answer: Original Creditor Name field (K1 segment)
The K1 segment in Metro 2 format contains the Original Creditor Name field, allowing consumers to identify who first extended the credit.
Question 4: A collector reports a $500 balance on an account but the consumer claims the balance is $450 after a partial payment. What must the collector do after verifying the payment?
- Delete the tradeline entirely
- Update the balance to $450 within the next reporting cycle (Correct answer)
- Leave the balance unchanged until the account is paid in full
- Report both balances simultaneously
Correct answer: Update the balance to $450 within the next reporting cycle
Furnishers must correct and update inaccurate information, so the verified balance must be updated to $450 in the next reporting cycle.
Question 5: Under E-OSCAR, what action code is used when a furnisher verifies the disputed information is accurate and no change is needed?
- 01 – Account information updated
- 02 – Delete account
- 03 – Account information verified, no change (Correct answer)
- 04 – Remove from file
Correct answer: 03 – Account information verified, no change
Action code 03 in E-OSCAR indicates the furnisher investigated the dispute and confirmed the reported information is accurate with no changes required.
Question 6: Which FCRA provision specifically obligates collection agencies to provide complete and accurate information to CRAs on an ongoing basis?
- Section 611 – Consumer dispute procedures
- Section 623 – Responsibilities of furnishers (Correct answer)
- Section 605 – Obsolescence of information
- Section 609 – Disclosures to consumers
Correct answer: Section 623 – Responsibilities of furnishers
Section 623 of the FCRA outlines the duties of information furnishers, including the obligation to report accurate, complete, and timely information to CRAs.
Question 7: If a consumer pays a collection account in full, which Metro 2 Account Status Code should the collector report?
- 62 – Paid collection (Correct answer)
- 13 – Paid, was a collection account
- 97 – Unpaid balance charged off
- DA – Delete account
Correct answer: 62 – Paid collection
Account Status Code 62 indicates the collection account has been paid in full, accurately reflecting the resolved status to the CRAs.
PCS Credit Bureau Reporting Accuracy 2
Under the FCRA, how long does a furnisher have to investigate a consumer dispute after receiving notice from a CRA?