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ATTACHMENT B

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Attachment B

12 C.F.R. § 1022.43. Direct Disputes

(a) General rule. Except as otherwise provided in this section, a furnisher must conduct a 

reasonable investigation of a direct dispute if it relates to:

(1) The consumer’s liability for a credit account or other debt with the furnisher, such as 

direct disputes relating to whether there is or has been identity theft or fraud against 

the consumer, whether there is individual or joint liability on an account, or whether 

the consumer is an authorized user of a credit account;

(2) The terms of a credit account or other debt with the furnisher, such as direct disputes 

relating to the type of account, principal balance, scheduled payment amount on an 

account, or the amount of the credit limit on an open-end account;

(3) The consumer’s performance or other conduct concerning an account or other 

relationship with the furnisher, such as direct disputes relating to the current payment 

status, high balance, date a payment was made, the amount of a payment made, or the 

date an account was opened or closed; or

(4) Any other information in a consumer report regarding an account or other relationship 

with the furnisher that bears on the consumer’s creditworthiness, credit standing, 

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

living.

(b) Exceptions. The requirements of paragraph (a) of this section do not apply to a furnisher 

if:

(1) The direct dispute relates to:

(i) The consumer’s identifying information (other than a direct dispute relating to a 

consumer’s liability for a credit account or other debt with the furnisher, as 

provided in paragraph (a)(1) of this section) such as name(s), date of birth, Social 

Security number, telephone number(s), or address(es);

(ii) The identity of past or present employers;

(iii) Inquiries or requests for a consumer report;

(iv) Information derived from public records, such as judgments, bankruptcies, liens, 

and other legal matters (unless provided by a furnisher with an account or other 

relationship with the consumer);

(v) Information related to fraud alerts or active duty alerts; or

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(vi) Information provided to a consumer reporting agency by another furnisher; or

(2) The furnisher has a reasonable belief that the direct dispute is submitted by, is 

prepared on behalf of the consumer by, or is submitted on a form supplied to the 

consumer by, a credit repair organization, as defined in 15 U.S.C. 1679a(3), or an 

entity that would be a credit repair organization, but for 15 U.S.C. 1679a(3)(B)(i).

(c) Direct dispute address. A furnisher is required to investigate a direct dispute only if a 

consumer submits a dispute notice to the furnisher at:

(1) The address of a furnisher provided by a furnisher and set forth on a consumer report 

relating to the consumer;

(2) An address clearly and conspicuously specified by the furnisher for submitting direct 

disputes that is provided to the consumer in writing or electronically (if the consumer 

has agreed to the electronic delivery of information from the furnisher); or

(3) Any business address of the furnisher if the furnisher has not so specified and 

provided an address for submitting direct disputes under paragraphs (c)(1) or (2) of 

this section.

(a) Direct dispute notice contents. A dispute notice must include:

(1) Sufficient information to identify the account or other relationship that is in dispute, 

such as an account number and the name, address, and telephone number of the 

consumer, if applicable;

(2) The specific information that the consumer is disputing and an explanation of the 

basis for the dispute; and

(3) All supporting documentation or other information reasonably required by the 

furnisher to substantiate the basis of the dispute. This documentation may include, 

for example, a copy of the relevant portion of the consumer report that contains the 

allegedly inaccurate information; a police report; a fraud or identity theft affidavit; a 

court order; or account statements.

(b) Duty of furnisher after receiving a direct dispute notice. After receiving a dispute notice 

from a consumer pursuant to paragraphs (c) and (d) of this section, the furnisher must:

(1) Conduct a reasonable investigation with respect to the disputed information;

(2) Review all relevant information provided by the consumer with the dispute notice;

(3) Complete its investigation of the dispute and report the results of the investigation to 

the consumer before the expiration of period under section 611(a)(1) of the FCRA (15 

U.S.C. 1681i(a)(1)) within which a consumer reporting agency would be required to 

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complete its action if the consumer had elected to dispute the information under that 

section; and

(4) If the investigation finds that the information reported was inaccurate, promptly notify 

each consumer reporting agency to which the furnisher provided inaccurate 

information of that determination and provide to the consumer reporting agency any 

correction to that information that is necessary to make the information provided by 

the furnisher accurate.

(c) Frivolous or irrelevant disputes. 

(1) A furnisher is not required to investigate a direct dispute if the furnisher has 

reasonably determined that the dispute is frivolous or irrelevant. A dispute qualifies 

as frivolous or irrelevant if:

(i) The consumer did not provide sufficient information to investigate the disputed 

information as required by paragraph (d) of this section;

(ii) The direct dispute is substantially the same as a dispute previously submitted by 

or on behalf of the consumer, either directly to the furnisher or through a 

consumer reporting agency, with respect to which the furnisher has already 

satisfied the applicable requirements of the Act or this section; provided, 

however, that a direct dispute is not substantially the same as a dispute previously 

submitted if the dispute includes information listed in paragraph (d) of this section 

that had not previously been provided to the furnisher; or

(iii) The furnisher is not required to investigate the direct dispute because one or more 

of the exceptions listed in paragraph (b) of this section applies.

(2) Notice of determination. Upon making a determination that a dispute is frivolous or 

irrelevant, the furnisher must notify the consumer of the determination not later than 

five business days after making the determination, by mail or, if authorized by the 

consumer for that purpose, by any other means available to the furnisher.

(3) Contents of notice of determination that a dispute is frivolous or irrelevant. A notice 

of determination that a dispute is frivolous or irrelevant must include the reasons for 

such determination and identify any information required to investigate the disputed 

information, which notice may consist of a standardized form describing the general 

nature of such information.

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