PCS Credit Bureau Reporting Accuracy 2

Question 1

Under the FCRA, how long does a furnisher have to investigate a consumer dispute after receiving notice from a CRA?

Accepted Answer

30 days

Answer

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?

Accepted Answer

Re-aging

Answer

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?

Accepted Answer

Original Creditor Name field (K1 segment)

Answer

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?

Accepted Answer

Update the balance to $450 within the next reporting cycle

Answer

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?

Accepted Answer

03 – Account information verified, no change

Answer

Action code 03 in E-OSCAR indicates the furnisher investigated the dispute and confirmed the reported information is accurate with no changes required.

(PCS) Professional Collection Specialist Practice Test

(PCS) Professional Collection Specialist Practice Test

PCS Credit Bureau Reporting Accuracy 2