PCS Credit Bureau Reporting Accuracy 3

Question 1

A consumer disputes a collection account claiming the debt belongs to someone with a similar name. The collector confirms it is indeed a different person's debt. What is the correct action?

Accepted Answer

Delete the tradeline from the consumer's credit report

Answer

When a collector confirms the account is a case of mistaken identity, the tradeline must be deleted from the wrongly affected consumer's credit report.

Question 2

What is the maximum number of days after a consumer's direct dispute to a furnisher that the furnisher must complete its investigation?

Accepted Answer

45 days

Answer

Under FCRA Section 623(a)(8), furnishers must investigate and respond to direct consumer disputes within 45 days.

Question 3

Which of the following is NOT a permissible reason for a furnisher to decline investigating a direct dispute?

Accepted Answer

The consumer owes a large balance on the account

Answer

The size of the balance owed is irrelevant to whether a furnisher must investigate a dispute; only procedural grounds like frivolousness or prior identical disputes can excuse investigation.

Question 4

Under Metro 2 compliance, what does the Compliance Condition Code 'XB' signify on a tradeline?

Accepted Answer

Account information disputed by consumer via FCRA Section 609

Answer

Compliance Condition Code XB indicates the consumer has disputed the account information directly with the furnisher under FCRA Section 609.

Question 5

A collection account first became delinquent on March 1, 2019. When must this account be removed from the consumer's credit report?

Accepted Answer

March 1, 2026

Answer

Negative information may be reported for 7 years from the date of first delinquency, so an account delinquent March 1, 2019 must be removed by March 1, 2026.

(PCS) Professional Collection Specialist Practice Test

(PCS) Professional Collection Specialist Practice Test

PCS Credit Bureau Reporting Accuracy 3