Case 1:14-cv-00062-CKK Document 3 Filed 01/17/14 Page 1 of 30

IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF COLUMBIA 

UNITED STATES OF AMERICA, 

Plaintiff, 

v. 

TELECHECK SERVICES, INC., a 

Delaware corporation, 

and 

TRS RECOVERY SERVICES, INC., a 

Delaware corporation, 

Defendants. 

Civil Action No. 14cv 00(~>2-

STIPULATED FINAL JUDGMENT AND ORDER FOR CIVIL PENALTIES, 

PERMANENT INJUNCTION, AND OTHER EQUITABLE RELIEF 

Plaintiff, the United States of America, acting upon notification and authorization to the 

Attorney General by the Federal Trade Commission ("FTC" or "Commission"), filed its 

complaint for a permanent injunction, civil penalties, and other equitable relief, pursuant to 

sections 5(a), 5(m)(l)(A), 13(b), 16(a)(l), and 19 ofthe Federal Trade Commission Act ("FTC 

Act"), 15 U.S.C. §§ 45(a), 45(m)(l)(A), 53(b), 56(a)(l), and 57b; and section 621(a) ofthe Fair 

Credit Reporting Act ("FCRA"), 15 U.S.C. § 1681s(a). Defendants have been represented by 

attorneys whose names appear hereafter. Defendants have waived service of the Summons and 

Complaint. Plaintiff and Defendants stipulate to the entry of this Stipulated Final Judgment and 

Order for Civil Penalties, Permanent Injunction, and Other Equitable Relief ("Order") to resolve 

all matters in dispute in this action between them. 

THEREFORE, IT IS ORDERED as follows: 
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FINDINGS 

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that TeleCheck, a consumer reporting agency ("CRA"), 

participated in deceptive or unfair acts or practices in violation of the FTC Act, 15 U.S.C. 

§ 45(a); and sections 611(et seq.) and 607(b) ofthe FCRA, 15 U.S.C. §§ 1681i (et seq.) and 

1681 e(b ). 

3. The Complaint charges that TRS, a debt-collector, participated in deceptive or 

unfair acts or practices in violation of section 5 ofthe FTC Act, 15 U.S.C. § 45(a); and violated 

the Duties of Furnishers of Information to Consumer Reporting Agencies Rule, 16 C.F .R. § 

660.3, recodified at 12 C.F .R. § 1022.42 ("Furnisher Rule"). 

4. Defendants neither admit nor deny any of the allegations in the Complaint, except 

as specifically stated in this Order. Only for purposes of this action, Defendants admit the facts 

necessary to establish jurisdiction. 

5. The parties waive all rights to appeal or otherwise challenge or contest the 

validity ofthis Order. 

6. Defendants waive any claim they may have against the Commission, its 

employees, representatives, or agents that relate to the matter stated herein. 

7. Defendants waive any claim they may have under the Equal Access to Justice 

Act, 28 U.S.C. § 2412, concerning the prosecution of this action through the date of this Order, 

and Defendants agree to bear their own costs and attorneys' fees. 

8. Entry of this Order is in the public interest. 

DEFINITIONS 

For the purpose of this Order: 

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1. "Defendants" shall mean TeleCheck Services, Inc. ("TeleCheck") and TRS 

Recovery Services, Inc. ("TRS"), their subsidiaries and operating companies, and their 

successors and assigns. 

2. The definitions set forth in the FCRA, 15 U.S.C. § 168la, et seq., shall apply, 

including but not limited to: 

a. "Person" shall mean any individual, partnership, corporation, trust, estate, 

cooperative, association, government or governmental subdivision or agency, or 

other entity. 

b. "Consumer" shall mean an individual. 

c. "Consumer Report" shall mean any written, oral, or other communication of any 

information by a CRA bearing on a consumer's credit worthiness, credit standing, 

credit capacity, character, general reputation, personal characteristics, or mode of 

living which is used or expected to be used or collected in whole or in part for the 

purpose of serving as a factor in establishing the consumer's eligibility for ( 1) 

credit or insurance to be used primarily for personal, family, or household 

purposes; (2) employment purposes; or (3) any other purpose authorized under 

section 604 ofthe FCRA, 15 U.S.C. § 1681b. For exclusions, see section 

603(d)(2) of the FCRA, 15 U.S.C. § 1681a(d)(2), a copy of which is attached as 

Exhibit A. 

d. "Consumer Reporting Agency" or "CRA" shall mean any person which, for 

monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in 

whole or in part in the practice of assembling or evaluating consumer credit 

information or other information on consumers for the purpose of furnishing 

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consumer reports to third parties, and which uses any means or facility of 

interstate commerce for the purpose of preparing or furnishing consumer reports. 

ORDER 

I. CIVIL PENALTY 

IT IS ORDERED that judgment in the amount of three million five hundred thousand 

dollars ($3,500,000) is entered in favor of Plaintiff against Defendants, jointly and severally, as a 

civil penalty, pursuant to section 621(a) of the FCRA, 15 U.S.C. § 1681s(a). 

Defendants are ordered to pay Plaintiff, by making payment to the Treasurer of the 

United States, three million five hundred thousand dollars ($3,500,000) within seven (7) days of 

entry of this Order by electronic fund transfer in accordance with instructions previously 

provided by a representative of Plaintiff. 

II. ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

A. If Defendants are in default on any obligations under this Section, then the 

judgment amount, together with interest computed pursuant to 28 U.S.C. § 1961 from the date of 

default to the date of payment, minus any payments previously made pursuant to this Section, 

becomes immediately due. 

B. Defendants relinquish dominion and all legal and equitable right, title, and interest 

in all assets transferred pursuant to this Order and may not seek the return of any assets. 

C. The facts as alleged in the Complaint filed will be taken as true, without further 

proof, in any subsequent civil litigation filed by or on behalf of the Commission to enforce its 

rights to any payment or monetary judgment pursuant to this Order. 

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III. PROHIBITED BUSINESS ACTIVITIES AS TO TELECHECK 

IT IS FURTHER ORDERED that TeleCheck, and its officers, agents, servants, 

employees, and all persons or entities in active concert or participation with any of them, who 

receive actual notice of this Order, whether acting directly or indirectly, in connection with 

TeleCheck's activities as a CRA, are hereby permanently restrained and enjoined from: 

A. Failing to comply with section 611 of the FCRA, 15 U.S.C. § 1681i, a copy of 

which is attached as Exhibit B, including by: 

1. Requiring the consumer to contact a third party directly to resolve a dispute 

over the completeness or accuracy of any item of information contained in the 

consumer's file; 

2. Imposing limitations or conditions before conducting a reinvestigation unless 

such limitations or conditions are expressly allowed by the FCRA; 

3. Failing to complete reinvestigations of disputes within 30 days or, if 

TeleCheck receives information from the consumer during that 30-day period 

that is relevant to the reinvestigation, within 45 days, and failing to adequately 

track the handling and resolution of consumer disputes to ensure their timely 

resolution; 

4. Failing to provide, before the expiration of the 5-business-day period 

beginning on the date on which TeleCheck receives notice of a dispute from 

any consumer, notification of the dispute to any person who provided any 

item of information in dispute, at the address and in the manner established 

with the person, which includes all relevant information regarding the dispute 

that TeleCheck has received from the consumer; 

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5. Failing to notify the consumer, within 5 business days, by mail or other means 

authorized by the consumer for that purpose, when it has terminated a 

reinvestigation of information disputed by a consumer, because it reasonably 

determined that the consumer's dispute was frivolous or irrelevant; 

6. After conducting a reinvestigation of any information disputed by a consumer 

and finding that an item of information is inaccurate, incomplete, or cannot be 

verified, failing to: 

i. promptly delete or modify an item of information from the consumer's 

file, as appropriate, based on the results of the reinvestigation; and 

ii. promptly notify the furnisher of that information that the information 

has been modified or deleted from the consumer's file; 

7. Failing to maintain reasonable procedures designed to prevent the 

reappearance in a consumer's file, and in consumer reports on the consumer, 

of information that is deleted pursuant to a reinvestigation; 

8. Failing to provide written notice to a consumer of the results of a 

reinvestigation not later than five (5) business days after the completion of the 

reinvestigation; 

B. Failing to comply with section 607(b) ofthe FCRA, 15 U.S.C. § 1681e(b), a copy 

of which is attached as Exhibit C, including by failing to promptly delete or modify an item of 

information from the consumer's file after conducting a reinvestigation and finding that an item 

of information was inaccurate or unverifiable. 

IV. PROHIBITED BUSINESS ACTIVITIES AS TO TRS 

IT IS FURTHER ORDERED that TRS, and its officers, agents, servants, employees, 

and all persons or entities in active concert or participation with any of them, who receive actual 

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notice of this Order, whether acting directly or indirectly, in connection with TRS's activities as 

a debt-collector, are hereby permanently restrained and enjoined from: 

A. Failing to comply with 12 C.P.R.§ 1022.42, a copy of which is attached as 

Exhibit D, including by failing to consider the guidelines in 12 C.P.R.§ 1022, subpart E, in 

TRS' s written policies and procedures. 

V. ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of 

this Order: 

A. Each Defendant, within seven (7) days of entry of this Order, must submit to the 

Commission an acknowledgment of receipt of this Order sworn under penalty of perjury. 

B. For five (5) years after entry of this Order, each Defendant for any business that 

such Defendant, individually or collectively with any other Defendant, is the majority owner or 

controls directly or indirectly, must deliver a copy of this Order to: (1) all principals, officers, 

directors, and LLC managers and members; (2) all employees, agents, and representatives who 

participate in conduct related to the subject matter of the Order; and (3) any business entity 

resulting from any change in structure as set forth in the Section titled Compliance Reporting. 

Delivery must occur within seven (7) days of entry of this Order for current personnel. For all 

others, delivery must occur before they assume their responsibilities. 

C. From each individual or entity to which a Defendant delivered a copy of this 

Order, that Defendant must obtain, within thirty (30) days, a signed and dated acknowledgment 

of receipt of this Order. 

VI. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendants make timely submissions to the 

Commission: 

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A. One hundred eighty (180) days after entry of this Order, each Defendant must 

submit a compliance report, sworn under penalty of perjury. Each Defendant must: (I) identify 

the primary physical, postal, and email address and telephone number, as designated points of 

contact, which representatives of the Commission or Plaintiff may use to communicate with 

Defendant; (2) identify all of that Defendant's businesses by all of their names, primary 

telephone numbers, and physical, postal, email, and Internet addresses; (3) describe the activities 

of each business, including the products and services offered, the means of consumer reporting 

and debt collection, and, the involvement of any other Defendant; ( 4) describe in detail whether 

and how that Defendant is in compliance with each Section of this Order; and (5) provide a copy 

of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to 

the Commission. 

B. For ten (1 0) years after entry of this Order, each Defendant must submit a 

compliance notice, sworn under penalty of perjury, within fourteen (14) days of any change in 

the following: (1) any designated point of contact; or (2) the structure of Defendant or any entity 

that Defendant has any ownership interest in or directly or indirectly controls that may affect 

compliance obligations arising under this Order, including: creation, merger, sale, or dissolution 

of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices of subject 

to this Order. 

C. Each Defendant must submit to the Commission notice of the filing of any 

bankruptcy petition, insolvency proceeding, or any similar proceeding by or against such 

Defendant within fourteen ( 14) days of its filing. 

D. Any submission to the Commission required by this Order to be sworn under 

penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by 

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concluding: "I declare under penalty of perjury under the laws of the United States of America 

that the foregoing is true and correct. Executed on: __ " and supplying the date, signatory's 

full name, title (if applicable), and signature. 

E. Unless otherwise directed by a Commission representative in writing, all 

submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or 

sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, 

Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, 

Washington, DC 20580. The subject line must begin: US. v. TeleCheck Svcs, Inc.; TRS 

Recovery Svcs, Inc. 

VII. RECORDKEEPING PROVISIONS 

IT IS FURTHER ORDERED that Defendants must create certain records for ten (10) 

years after entry of the Order, and retain each such record for five (5) years. Specifically, 

Defendants, in connection with providing consumer reports, must create and retain the following 

records: 

A. Accounting records showing the revenues from all goods or services sold, all 

costs incurred in generating those revenues, and the resulting net profit or loss; 

B. Personnel records showing, for each person providing services, whether as an 

employee or otherwise, that person's: name, addresses, and telephone numbers; job title or 

position; dates of service; and, (if applicable) the reason for termination; 

C. Consumer complaints, whether received directly or indirectly, such as through a 

third party, and any response; 

D. Copies of all training materials and written policies and procedures that relate to 

Defendants' activities in consumer reporting or debt-collection or Defendants' compliance with 

the provisions of this Order; 

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E. Consumer dispute files that include correspondence between consumers and 

Defendants, and correspondence between Defendants and furnishers of disputed information, 

sufficient to demonstrate compliance with section 611 of the FCRA, 15 U.S.C. § 1681, a copy of 

which is attached as Exhibit B; and 

F. All records and documents necessary to demonstrate full compliance with each 

provision of this Order, including all submissions to the Commission. 

VIII. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring Defendants' 

compliance with this Order: 

A. Within fourteen ( 14) days of receipt of a written request from a representative of 

Commission or Plaintiff, each Defendant must: submit additional compliance reports or other 

requested information, which must be sworn under penalty of perjury; appear for depositions; 

and produce documents for inspection and copying. The Commission and Plaintiff are also 

authorized to obtain discovery, without further leave of court, using any of the procedures 

prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 

34, 36, 45, and 69, provided that Defendant, after attempting to resolve a dispute without court 

action and for good cause shown, may file a motion with this Court seeking an order including 

one or more of the protections set forth in Rule 26( c). 

B. For matters concerning this Order, the Commission and Plaintiff are authorized to 

communicate directly with each Defendant. Defendants must permit representatives of the 

Commission and Plaintiff to interview any employee or other person affiliated with any 

Defendant who has agreed to such an interview. The person interviewed may have counsel 

present. 

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C. The Commission and Plaintiff may use all other lawful means, including posing, 

through its representatives, as consumers, suppliers, or other individuals or entities, to 

Defendants or any individual or entity affiliated with Defendants, without the necessity of 

identification or prior notice. Nothing in this Order limits the Commission's lawful use of 

compulsory process, pursuant to sections 9 and 20 ofthe FTC Act, 15 U.S.C. §§ 49, 57b-1. 

IX. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction ofthis matter for 

purposes of construction, modification, and enforcement of this Order. 

IT IS SO ORDERED: 

-t:L 

Datedthis /7 dayof ~ ,2014 

The parties, by their respective counsel, hereby consent to the terms and conditions of the 

Stipulated Order as set forth above and consent to the entry thereof. 

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FOR THE PLAINTIFF 

FOR THE UNITED STATES OF AMERICA: 

S11JART F. DELERY 

Assistant Attorney General, Civil Division 

U.S. DEPARTMENT OF JUSTICE 

MAAME EWUSI-MENSAH FRIMPONG 

Deputy Assistant Attorney General 

Civil Division 

MICHAEL S. BLUME 

Director 

Consumer Protection Branch 

RICHARD GOLDBERG 

Assistant Director 

Consumer Protection Branch 

U.S. Department of Justice 

P.O. Box 386 

Washington, D.C. 20044 

PHONE: 202-307-2532 

FAX: 202-514-8742 

Richard.Goldberg@usdoj .gov 

~~- ANN ENTWISTLE 

Trial Attorney 

Consumer Protection Branch 

U.S. Department of Justice 

P.O. Box386 

Washington, D.C. 20044 

PHONE: 202-305-3630 

FAX: 202-514-8742 

Ann.Entwistle@usdoj .gov 

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;t:h~{;fc~jSSION: 

MANEESHA MITRAL 

Associate Director 

Di~~ityProtection 

OBERT SCHOSHINSKI 

Assistant Director 

Division of Privacy and Identity Protection 

Attorney 

Division of Privacy and Identity Protection 

Federal Trade Commission 

601 New Jersey Avenue, NW 

Mail Stop NJ-8100 

Washington D.C. 20001 

Tel: (202) 326-3250 

~~ KRISTE ANDERSON 

Attorney 

Division of Privacy and Identity Protection 

Federal Trade Commission 

601 New Jersey Avenue, NW 

Mail Stop NJ-8100 

Washington D.C. 20001 

Tel: (202) 326-3209 
Case 1:14-cv-00062-CKK Document 3 Filed 01/17/14 Page 14 of 30

FOR THE DEFENDANTS: 

Mark Wallin 

President 

~ ~ ~rvices, Inc. 

Brian Connot 

President . 

TRS Recovery Services, Inc. 

w~~tJ.t14 Bass, Berry & Sims PLC 

150 Third A venue South, Suite 2800 

Nashville, TN 37201 

Tel: (615) 742-6276 

en~~. b-1 

David R. Esquivel 

Bass, Berry & Sims PLC 

150 Third A venue South, Suite 2800 

Nashville, TN 3 7201 

· 

22~ Michael Goodman 

Attomey 

Hudson Cook 

1020 19th Street, NW 

7th Floor 

Washington, DC 20036 

Tel: (202) 327-9704 
Case 1:14-cv-00062-CKK Document 3 Filed 01/17/14 Page 15 of 30

Attachments: 

Exhibit A: Section 603(d)(2) ofthe FCRA, 15 U.S.C. § 1681a(d)(2) 

Exhibit B: Section 611 ofthe FCRA, 15 U.S.C. § 1681i 

Exhibit C: Section 607(b) ofthe FCRA, 15 U.S.C. § 1681e(b) 

Exhibit D: Reasonable policies and procedures concerning the accuracy and integrity of 

furnished information, 12 C.P.R.§ 1022.42 

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Exhibit A 

§ 603. Definitions; rules of construction [15 U.S.C. § 1681a] 

(d) Consumer report. 

(2) Exclusions. Except as provided in paragraph (3), the term "consumer report" does not include 

(A) subject to section 624, any 

(i) report containing information solely as to transactions or experiences 

between the consumer and the person making the report; 

(ii) communication of that information among persons related by common 

ownership or affiliated by corporate control; or 

(iii) communication of other information among persons related by common 

ownership or affiliated by corporate control, if it is clearly and 

conspicuously disclosed to the consumer that the information may be 

communicated among such persons and the consumer is given the 

opportunity, before the time that the information is initially 

communicated, to direct that such information not be communicated 

among such persons; 

(B) any authorization or approval of a specific extension of credit directly or 

indirectly by the issuer of a credit card or similar device; 

(C) any report in which a person who has been requested by a third party to make a 

specific extension of credit directly or indirectly to a consumer conveys his or her 

decision with respect to such request, if the third party advises the consumer of 

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the name and address of the person to whom the request was made, and such 

person makes the disclosures to the consumer required under section 615 [§ 

1681m]; or 

(D) a communication described in subsection ( o) or (x) among such persons; 

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Exhibit B 

§ 611. Procedure in case of disputed accuracy [15 U.S.C. § 1681i] 

(a) Reinvestigations of Disputed Information 

( 1) Reinvestigation Required 

(A) In general. Subject to subsection (f), if the completeness or accuracy of 

any item of information contained in a consumer's file at a consumer 

reporting agency is disputed by the consumer and the consumer notifies 

the agency directly, or indirectly through a reseller, of such dispute, the 

agency shall, free of charge, conduct a reasonable reinvestigation to 

determine whether the disputed information is inaccurate and record the 

current status of the disputed information, or delete the item from the file 

in accordance with paragraph (5), before the end of the 30-day period 

beginning on the date on which the agency receives the notice of the 

dispute from the consumer or reseller. 

(B) Extension of period to reinvestigate. Except as provided in subparagraph 

(c), the 30-day period described in subparagraph (A) may be extended for 

not more than 15 additional days if the consumer reporting agency 

receives information from the consumer during that 30-day period that is 

relevant to the reinvestigation. 

(C) Limitations on extension of period to reinvestigate. Subparagraph (B) shall 

not apply to any reinvestigation in which, during the 30-day period 

described in subparagraph (A), the information that is the subject of the 

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reinvestigation is found to be inaccurate or incomplete or the consumer 

reporting agency determines that the information cannot be verified. 

(2) Prompt Notice of Dispute to Furnisher oflnformation 

(A) In general. Before the expiration of the 5-business-day period beginning 

on the date on which a consumer reporting agency receives notice of a 

dispute from any consumer or a reseller in accordance with paragraph (1 ), 

the agency shall provide notification of the dispute to any person who 

provided any item of information in dispute, at the address and in the 

manner established with the person. The notice shall include all relevant 

information regarding the dispute that the agency has received from the 

consumer or reseller. 

(B) Provision of other information. The consumer reporting agency shall 

promptly provide to the person who provided the information in dispute 

all relevant information regarding the dispute that is received by the 

agency from the consumer or the reseller after the period referred to in 

subparagraph (A) and before the end of the period referred to in paragraph 

(1 )(A). 

(3) Determination That Dispute Is Frivolous or Irrelevant 

(A) In general. Notwithstanding paragraph (1), a consumer reporting agency 

may terminate a reinvestigation of information disputed by a consumer 

under that paragraph if the agency reasonably determines that the dispute 

by the consumer is frivolous or irrelevant, including by reason of a failure 

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by a consumer to provide sufficient information to investigate the disputed 

information. 

(B) Notice of determination. Upon making any determination in accordance 

with subparagraph (A) that a dispute is frivolous or irrelevant, a consumer 

reporting agency shall notify the consumer of such determination not later 

than 5 business days after making such determination, by mail or, if 

authorized by the consumer for that purpose, by any other means available 

to the agency. 

(C) Contents of notice. A notice under subparagraph (B) shall include 

(i) the reasons for the determination under subparagraph (A); and 

(ii) identification of any information required to investigate the 

disputed information, which may consist of a standardized form 

describing the general nature of such information. 

( 4) Consideration of consumer information. In conducting any reinvestigation under 

paragraph (1) with respect to disputed information in the file of any consumer, the 

consumer reporting agency shall review and consider all relevant information 

submitted by the consumer in the period described in paragraph (l)(A) with 

respect to such disputed information. 

(5) Treatment oflnaccurate or Unverifiable Information 

(A) In general. If, after any reinvestigation under paragraph (1) of any 

information disputed by a consumer, an item of the information is found to 

be inaccurate or incomplete or cannot be verified, the consumer reporting 

agency shall20 
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(i) promptly delete that item of information from the file of the 

consumer, or modify that item of information, as appropriate, 

based on the results of the reinvestigation; and 

(ii) promptly notify the furnisher of that information that the 

information has been modified or deleted from the file of the 

consumer. 

(B) Requirements Relating to Reinsertion of Previously Deleted Material 

(i) Certification of accuracy of information. If any information is 

deleted from a consumer's file pursuant to subparagraph (A), the 

information may not be reinserted in the file by the consumer 

reporting agency unless the person who furnishes the information 

certifies that the information is complete and accurate. 

(ii) Notice to consumer. If any information that has been deleted from 

a consumer's file pursuant to subparagraph (A) is reinserted in the 

file, the consumer reporting agency shall notify the consumer of 

the reinsertion in writing not later than 5 business days after the 

reinsertion or, if authorized by the consumer for that purpose, by 

any other means available to the agency. 

(iii) Additional information. As part of, or in addition to, the notice 

under clause (ii), a consumer reporting agency shall provide to a 

consumer in writing not later than 5 business days after the date of 

the reinsertion 

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{I) a statement that the disputed information has been 

reinserted; 

(II) the business name and address of any furnisher of 

information contacted and the telephone number of such 

furnisher, if reasonably available, or of any furnisher of 

information that contacted the consumer reporting agency, 

in connection with the reinsertion of such information; and 

(III) a notice that the consumer has the right to add a statement 

to the consumer's file disputing the accuracy or 

completeness ofthe disputed information. 

(C) Procedures to prevent reappearance. A consumer reporting agency shall 

maintain reasonable procedures designed to prevent the reappearance in a 

consumer's file, and in consumer reports on the consumer, of information 

that is deleted pursuant to this paragraph (other than information that is 

reinserted in accordance with subparagraph (B)(i)). 

(D) Automated reinvestigation system. Any consumer reporting agency that 

compiles and maintains files on consumers on a nationwide basis shall 

implement an automated system through which furnishers of information 

to that consumer reporting agency may report the results of a 

reinvestigation that finds incomplete or inaccurate information in a 

consumer's file to other such consumer reporting agencies. 

(6) Notice of Results of Reinvestigation 

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(A) In general. A consumer reporting agency shall provide written notice to a 

consumer of the results of a reinvestigation under this subsection not later 

than 5 business days after the completion of the reinvestigation, by mail 

or, if authorized by the consumer for that purpose, by other means 

available to the agency. 

(B) Contents. As part of, or in addition to, the notice under subparagraph (A), 

a consumer reporting agency shall provide to a consumer in writing before 

the expiration of the 5-day period referred to in subparagraph (A) 

(i) a statement that the reinvestigation is completed; 

(ii) a consumer report that is based upon the consumer's file as that file 

is revised as a result of the reinvestigation; 

(iii) a notice that, if requested by the consumer, a description of the 

procedure used to determine the accuracy and completeness of the 

information shall be provided to the consumer by the agency, 

including the business name and address of any furnisher of 

information contacted in connection with such information and the 

telephone number of such furnisher, if reasonably available; 

(iv) a notice that the consumer has the right to add a statement to the 

consumer's file disputing the accuracy or completeness of the 

information; and 

(v) a notice that the consumer has the right to request under subsection 

(d) that the consumer reporting agency furnish notifications under 

that subsection. 

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(7) Description of reinvestigation procedure. A consumer reporting agency shall 

provide to a consumer a description referred to in paragraph (6)(B)(iii) by not 

later than 15 days after receiving a request from the consumer for that description. 

(8) Expedited dispute resolution. If a dispute regarding an item of information in a 

consumer's file at a consumer reporting agency is resolved in accordance with 

paragraph (5)(A) by the deletion of the disputed information by not later than 3 

business days after the date on which the agency receives notice of the dispute 

from the consumer in accordance with paragraph (1 )(A), then the agency shall not 

be required to comply with paragraphs (2), (6), and (7) with respect to that dispute 

if the agency 

(A) provides prompt notice of the deletion to the consumer by telephone; 

(B) includes in that notice, or in a written notice that accompanies a 

confirmation and consumer report provided in accordance with 

subparagraph (C), a statement of the consumer's right to request under 

subsection (d) that the agency furnish notifications under that subsection; 

and 

(C) provides written confirmation of the deletion and a copy of a consumer 

report on the consumer that is based on the consumer's file after the 

deletion, not later than 5 business days after making the deletion. 

(b) Statement of dispute. If the reinvestigation does not resolve the dispute, the consumer 

may file a brief statement setting forth the nature of the dispute. The consumer reporting 

agency may limit such statements to not more than one hundred words if it provides the 

consumer with assistance in writing a clear summary of the dispute. 

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(c) Notification of consumer dispute in subsequent consumer reports. Whenever a statement 

of a dispute is filed, unless there is reasonable grounds to believe that it is frivolous or 

irrelevant, the consumer reporting agency shall, in any subsequent report containing the 

information in question, clearly note that it is disputed by the consumer and provide 

either the consumer's statement or a clear and accurate codification or summary thereof. 

(d) Notification of deletion of disputed information. Following any deletion of information 

which is found to be inaccurate or whose accuracy can no longer be verified or any 

notation as to disputed information, the consumer reporting agency shall, at the request of 

the consumer, furnish notification that the item has been deleted or the statement, 

codification or summary pursuant to subsection (b) or (c) of this section to any person 

specifically designated by the consumer who has within two years prior thereto received 

a consumer report for employment purposes, or within six months prior thereto received a 

consumer report for any other purpose, which contained the deleted or disputed 

information. 

(e) Treatment of Complaints and Report to Congress 

(1) In general. The Bureau shall-

(A) compile all complaints that it receives that a file of a consumer that is 

maintained by a consumer reporting agency described in section 603(p) 

contains incomplete or inaccurate information, with respect to which, the 

consumer appears to have disputed the completeness or accuracy with the 

consumer reporting agency or otherwise utilized the procedures provided 

by subsection (a); and 

(B) transmit each such complaint to each consumer reporting agency involved. 

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(2) Exclusion. Complaints received or obtained by the Bureau pursuant to its 

investigative authority under the Consumer Financial Protection Act of 20 I 0 shall 

not be subject to paragraph (I). 

(3) Agency responsibilities. Each consumer reporting agency described in section 

603(p) that receives a complaint transmitted by the Bureau pursuant to paragraph 

(I) shall-

(A) review each such complaint to determine whether all legal obligations 

imposed on the consumer reporting agency under this title (including any 

obligation imposed by an applicable court or administrative order) have 

been met with respect to the subject matter of the complaint; 

(B) provide reports on a regular basis to the Bureau regarding the 

determinations of and actions taken by the consumer reporting agency, if 

any, in connection with its review of such complaints; and 

(C) maintain, for a reasonable time period, records regarding the disposition of 

each such complaint that is sufficient to demonstrate compliance with this 

subsection. 

(4) Rulemaking authority. The Bureau may prescribe regulations, as appropriate to 

implement this subsection. 

(5) Annual report. The Bureau shall submit to the Committee on Banking, Housing, 

and Urban Affairs of the Senate and the Committee on Financial Services of the 

House of Representatives an annual report regarding information gathered by the 

Bureau under this subsection. 

(f) Reinvestigation Requirement Applicable to Resellers 

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(1) Exemption from general reinvestigation requirement. Except as provided in 

paragraph (2), a reseller shall be exempt from the requirements of this section. 

(2) Action required upon receiving notice of a dispute. If a reseller receives a notice 

from a consumer of a dispute concerning the completeness or accuracy of any 

item of information contained in a consumer report on such consumer produced 

by the reseller, the reseller shall, within 5 business days of receiving the notice, 

and free of charge -

(A) determine whether the item of information is incomplete or inaccurate as a 

result of an act or omission of the reseller; and 

(B) (i) if the reseller determines that the item of information is incomplete 

or inaccurate as a result of an act or omission of the reseller, not 

later than 20 days after receiving the notice, correct the 

information in the consumer report or delete it; or 

(ii) if the reseller determines that the item of information is not 

incomplete or inaccurate as a result of an act or omission of the 

reseller, convey the notice of the dispute, together with all relevant 

information provided by the consumer, to each consumer reporting 

agency that provided the reseller with the information that is the 

subject of the dispute, using an address or a notification 

mechanism specified by the consumer reporting agency for such 

notices. 

(3) Responsibility of consumer reporting agency to notifY consumer through reseller. 

Upon the completion of a reinvestigation under this section of a dispute 

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concerning the completeness or accuracy of any information in the file of a 

consumer by a consumer reporting agency that received notice of the dispute from 

a reseller under paragraph (2)-

(A) the notice by the consumer reporting agency under paragraph (6), (7), or 

(8) of subsection (a) shall be provided to the reseller in lieu of the 

consumer; and 

(B) the reseller shall immediately reconvey such notice to the consumer, 

including any notice of a deletion by telephone in the manner required 

under paragraph (8)(A). 

( 4) Reseller reinvestigations. No provision of this subsection shall be construed as 

prohibiting a reseller from conducting a reinvestigation of a consumer dispute 

directly. 

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Exhibit C 

§ 607. Compliance procedures [15 U.S.C. § 1681e] 

(b) Accuracy of report. Whenever a consumer reporting agency prepares a consumer report it 

shall follow reasonable procedures to assure maximum possible accuracy of the information 

concerning the individual about whom the report relates. 

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Exhibit D 

12 C.F .R. § 1022.42. Reasonable policies and procedures concerning the accuracy and integrity 

of furnished information. 

(a) Policies and procedures. Each furnisher must establish and implement reasonable written 

policies and procedures regarding the accuracy and integrity of the information relating to 

consumers that it furnishes to a consumer reporting agency. The policies and procedures 

must be appropriate to the nature, size, complexity, and scope of each furnisher's 

activities. 

(b) Guidelines. Each furnisher must consider the guidelines in appendix E of this part in 

developing its policies and procedures required by this section, and incorporate those 

guidelines that are appropriate. 

(c) Reviewing and updating policies and procedures. Each furnisher must review its policies 

and procedures required by this section periodically and update them as necessary to 

ensure their continued effectiveness. 

30