UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF TEXAS

DALLAS DIVISION

UNITED STATES OF AMERICA,

Plaintiff,

v.

CREDIT PROTECTION ASSOCIATION, 

LP, a limited partnership,

Defendant.

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Case No.

STIPULATED FINAL ORDER FOR PERMANENT INJUNCTION AND 

CIVIL PENALTY JUDGMENT

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

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

Complaint for Civil Penalties, Permanent Injunction, and Other Equitable Relief, pursuant to 

Sections 5(a), 5(m)(1)(A), 13(b), 16(a)(1), and 19(b) of the Federal Trade Commission Act 

(“FTC Act”), 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), 56(a)(1), and 57(b); and Section 621(a) of 

the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. § 1681s(a). Defendant has waived service of 

the Summons and Complaint. Plaintiff and Defendant stipulate to the entry of this Stipulated

Final Order for Permanent Injunction and Civil Penalty Judgment (“Order”) to resolve all 

matters in dispute in this action between them.

THEREFORE, IT IS ORDERED as follows:

FINDINGS

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that Defendant participated in acts or practices in 

violation of Section 5 of the FTC Act, 15 U.S.C. § 45; the FCRA, 15 U.S.C. §§ 1681-1681x; and 

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the Duties of Furnishers of Information to Consumer Reporting Agencies (“Furnisher Rule”), 16 

C.F.R. § 660, issued pursuant to Section 623(e)(1) of the FCRA, 15 U.S.C. §1681s-2(e)(1), and 

recodified as Duties of Furnishers of Information, 12 C.F.R. § 1022, subpart E. 

3. Defendant neither admits nor denies any of the allegations in the Complaint, 

except as specifically stated in this Order. Only for purposes of this action, Defendant admits the 

facts necessary to establish jurisdiction. 

4. Defendant waives any claim that it 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 agrees to bear its own costs and attorney’s fees. 

5. Defendant and Plaintiff waive all rights to appeal or otherwise challenge or 

contest the validity of this Order. 

DEFINITIONS

For purposes of this Order, the following definitions apply:

A. “Defendant” means Credit Protection Association, LP, and its successors and 

assigns. 

B. The definitions set forth in the FCRA, 15 U.S.C. § 1681a, et seq., and 12 C.F.R. 

§§ 1022.3 and 1022.41 shall apply, including but not limited to: 

1. “Consumer” means an individual.

2. “Consumer Reporting Agency” or “CRA” means 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 consumer reports to third parties, and which uses any means or 

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facility of interstate commerce for the purpose of preparing or furnishing 

consumer reports.

3. “Direct Dispute” means a dispute submitted directly to a furnisher 

(including a furnisher that is a debt collector) by a consumer concerning 

the accuracy of any information contained in a consumer report and 

pertaining to an account or other relationship that the furnisher has or had 

with the consumer.

4. “Furnisher” means an entity that furnishes information relating to 

consumers to one or more consumer reporting agencies for inclusion in a 

consumer report. 

C. “FCRA Qualified Direct Dispute” means a written Direct Dispute that is 

submitted by the consumer at the address provided by the furnisher or, if the furnisher has not 

specified an address, is submitted to any business address of the furnisher and: (1) includes 

sufficient information to identify the account or other relationship that is in dispute; (2) includes 

the specific information the consumer is disputing and an explanation for the basis of the dispute; 

and (3) includes all supporting documentation or other information reasonably required by the 

furnisher to substantiate the basis of the dispute. 

ORDER

I. PROHIBITED BUSINESS ACTIVITIES

IT IS ORDERED that Defendant, Defendant’s officers, agents, employees, and 

attorneys, and all other persons in active concert or participation with any of them, who receive

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

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furnishing of consumer information to CRAs, are hereby permanently restrained and enjoined 

from:

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

Attachment A, including by failing to:

1. Establish and implement reasonable written policies and procedures 

regarding the accuracy and integrity of the information relating to 

consumers that it furnishes to CRAs that are appropriate to the nature, 

size, complexity, and scope of Defendant’s activities; 

2. Consider the guidelines set forth in Appendix E to 12 C.F.R. Part 1022, a 

copy of which is attached as Attachment B, in developing the policies 

and procedures, and incorporate those guidelines that are appropriate; and 

3. Periodically review the written policies and procedures and update them as 

necessary to ensure their continued effectiveness; 

B. Failing to:

1. Establish and implement reasonable written policies and procedures 

regarding reasonable investigations of FCRA Qualified Direct Disputes;

2. In developing the policies and procedures concerning FCRA Qualified 

Direct Disputes, incorporate reasonable provisions related to: (a) training 

employees whose duties include processing, responding to, or 

investigating Direct Disputes, including training on the requirements of 

the FCRA and related regulations; (b) retaining documents related to 

FCRA Qualified Direct Disputes for a reasonable period of time to allow 

for effective training and auditing; (c) requiring employees to document 

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actions taken in processing, responding to, or investigating FCRA 

Qualified Direct Disputes, to allow for effective training and auditing; and 

(d) establishing an auditing program and schedule that is reasonably 

designed to promote compliance with the requirements of the FCRA and 

related regulations; and

3. Periodically review the written policies and procedures regarding the 

conduct of reasonable investigations of FCRA Qualified Direct Disputes

and update them as necessary to ensure their continued effectiveness; 

C. Failing to comply with 12 C.F.R. § 1022.43, a copy of which is attached as 

Attachment C, including by, upon receiving an FCRA Qualified Direct Dispute, failing to:

1. Conduct a reasonable investigation with respect to the disputed 

information;

2. Review all relevant information provided by the consumer with the 

dispute notice; and

3. Complete its investigation of the dispute and report the results of the 

investigation to the consumer before the expiration of the period 

prescribed by Section 611(a)(1) of the Fair Credit Reporting Act, 15 U.S.C 

1681i(a)(1), a copy of which is attached as Attachment D.

II. MONETARY JUDGMENT FOR CIVIL PENALTY

IT IS FURTHER ORDERED that:

A. Judgment in the amount of Seventy-Two Thousand Dollars ($72,000) is entered 

in favor of the Plaintiff against Defendant as a civil penalty pursuant to Section 621(a) of the 

FCRA, 15 U.S.C. § 1681s(a). 

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B. Defendant is ordered to pay to the Plaintiff Seventy-Two Thousand Dollars 

($72,000) by electronic transfer to the Treasurer of the United States as follows:

1. Eighteen Thousand Dollars ($18,000) which, as Defendant stipulates, its

undersigned counsel holds in escrow for no purpose other than payment to 

Plaintiff. Such payment must be made within fourteen (14) days of the entry of 

this Order by electronic fund transfer in accordance with instructions previously 

provided by a representative of Plaintiff. 

2. Eighteen Thousand Dollars ($18,000) within three (3) months of entry of 

this Order; 

3. Eighteen Thousand Dollars ($18,000) within six (6) months of entry of 

this Order; and

4. Eighteen Thousand Dollars ($18,000) within nine (9) months of entry of 

this Order.

III. ADDITIONAL MONETARY PROVISIONS

IT IS FURTHER ORDERED that:

A. Defendant relinquishes 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. 

B. The facts alleged in the Complaint will be taken as true, without further proof, in 

any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to 

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

C. Defendant acknowledges that its Taxpayer Identification Number (Employer 

Identification Number), which Defendant must submit to the Commission, may be used for 

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collecting and reporting on any delinquent amount arising out of this Order, in accordance with 

31 U.S.C. § 7701. 

IV. ORDER ACKNOWLEDGMENTS

IT IS FURTHER ORDERED that Defendant obtain acknowledgments of receipt of this 

Order: 

A. 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, Defendant 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 Defendant delivered a copy of this Order, 

Defendant must obtain, within thirty (30) days, a signed and dated acknowledgment of receipt of 

this Order. 

V. COMPLIANCE REPORTING

IT IS FURTHER ORDERED that Defendant make timely submissions to the 

Commission:

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

compliance report, sworn under penalty of perjury. Defendant must: (1) identify the primary 

physical, postal, and email address and telephone number, as designated points of contact, which 

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representatives of the Commission and Plaintiff may use to communicate with Defendant; (2) 

identify all of Defendant’s businesses by all of their names, telephone numbers, and physical, 

postal, email, and Internet addresses; (3) describe the activities of each business, including

whether the business engages in debt collection or furnishes consumer information to CRAs; (4) 

describe in detail whether and how 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 twenty (20) years following entry of this Order, Defendant must submit a 

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

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

Defendant has any ownership interest in or controls directly or indirectly 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 subject to 

this Order. 

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

petition, insolvency proceeding, or similar proceeding by or against 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 

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. 

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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: United States v. Credit Protection 

Association, LP. 

VI. RECORDKEEPING 

IT IS FURTHER ORDERED that Defendant must create certain records for twenty 

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

in connection with furnishing information to any CRA, and receiving and investigating direct 

disputes related to Consumer Reports, Defendant must create and retain the following records:

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

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

employee or otherwise, that person’s: name; addresses; telephone numbers; job title or position; 

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

C. All employee training materials for employees whose duties involve furnishing 

consumer information to CRAs, processing or investigating disputes of furnished consumer 

information, or training or supervising other employees who perform these duties;

D. All auditing reports related to auditing employees whose duties involve furnishing 

consumer information to CRAs, processing or investigating disputes of furnished consumer 

information, or training or supervising other employees who perform these duties;

E. All form letters or notices related to Defendant’s FCRA compliance practices and 

procedures; and

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F. All records necessary to demonstrate full compliance with each provision of this 

Order, including, but not limited to:

1. all acknowledgments of receipt of this Order required by the section titled 

“Order Acknowledgments”; and

2. all reports submitted to the FTC pursuant to the Section titled 

“Compliance Reporting.”

VII. COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for purposes of monitoring Defendant’s compliance 

with this Order:

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

the Commission or Plaintiff, 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 for 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 the Defendant. Defendant must permit representatives of the 

Commission and Plaintiff to interview any employee or other person affiliated with 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 their representatives as consumers, suppliers, or other individuals or entities, to 

Defendant or any individual or entity affiliated with Defendant, 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 of the FTC Act, 15 U.S.C. §§ 49, 57b-1. 

III. RETENTION OF JURISDICTION

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

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

IT IS SO ORDERED this ______ day of ________, 2016.

______________________________

HONORABLE SIDNEY A. FITZWATER

United States District Court Judge

Northern District of Texas

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SO STIPULATED AND AGREED:

FOR PLAINTIFF:

THE UNITED STATES OF AMERICA

BENJAMIN C. MIZER

Principal Deputy Assistant Attorney General

Civil Division

United States Department of Justice 

JONATHAN F OLIN

Deputy Assistant Attorney General

MICHAEL S. BLUME

Director

Consumer Protection Branch

ANDREW E. CLARK

Assistant Director

_______________________________ 

Jacqueline Blaesi-Freed

Trial Attorney

Dep’t of Justice, Consumer Protection Branch

450 5th Street, NW 

Washington DC 20001

(202) 353-2809; jacqueline.m.blaesi-freed@usdoj.gov

(202) 514-8742 (fax)

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ATTACHMENTS:

Attachment A: Reasonable policies and procedures concerning the accuracy and 

integrity of furnished information, 12 C.F.R. § 1022.42.

Attachment B: Appendix E to Part 1022—Interagency Guidelines Concerning the 

Accuracy and Integrity of Information Furnished to Consumer Reporting Agencies.

Attachment C: Direct disputes, 12 C.F.R. § 1022.43. 

Attachment D: Procedure in case of disputed accuracy—Reinvestigations of disputed 

information—Reinvestigation required—In general, 15 U.S.C. § 1681i(a)(1)(A).

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ATTACHMENT A

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.

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ATTACHMENT B

Appendix E to Part 1022—Interagency Guidelines Concerning the Accuracy and Integrity of 

Information Furnished to Consumer Reporting Agencies

The Bureau encourages voluntary furnishing of information to consumer reporting 

agencies. Section 1022.42 of this part requires each furnisher to establish and implement 

reasonable written policies and procedures concerning the accuracy and integrity of the 

information it furnishes to consumer reporting agencies. Under § 1022.42(b) of this part, a 

furnisher must consider the guidelines set forth below in developing its policies and procedures. 

In establishing these policies and procedures, a furnisher may include any of its existing policies 

and procedures that are relevant and appropriate. Section 1022.42(c) requires each furnisher to 

review its policies and procedures periodically and update them as necessary to ensure their 

continued effectiveness.

I. Nature, Scope, and Objectives of Policies and Procedures

(a) Nature and Scope. Section 1022.42(a) of this part requires that a furnisher's 

policies and procedures be appropriate to the nature, size, complexity, and scope of the 

furnisher's activities. In developing its policies and procedures, a furnisher should consider, for 

example:

(1) The types of business activities in which the furnisher engages;

(2) The nature and frequency of the information the furnisher provides to 

consumer reporting agencies; and

(3) The technology used by the furnisher to furnish information to consumer 

reporting agencies.

(b) Objectives. A furnisher's policies and procedures should be reasonably designed 

to promote the following objectives:

(1) To furnish information about accounts or other relationships with a 

consumer that is accurate, such that the furnished information:

(i) Identifies the appropriate consumer;

(ii) Reflects the terms of and liability for those accounts or other 

relationships; and

(iii) Reflects the consumer's performance and other conduct with 

respect to the account or other relationship;

(2) To furnish information about accounts or other relationships with a 

consumer that has integrity, such that the furnished information: 

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(i) Is substantiated by the furnisher's records at the time it is 

furnished;

(ii) Is furnished in a form and manner that is designed to minimize the 

likelihood that the information may be incorrectly reflected in a consumer report; 

thus, the furnished information should:

(A) Include appropriate identifying information about the 

consumer to whom it pertains; and

(B) Be furnished in a standardized and clearly understandable 

form and manner and with a date specifying the time period to which the 

information pertains; and

(iii) Includes the credit limit, if applicable and in the furnisher's 

possession;

(3) To conduct reasonable investigations of consumer disputes and take 

appropriate actions based on the outcome of such investigations; and

(4) To update the information it furnishes as necessary to reflect the current 

status of the consumer's account or other relationship, including, for example:

(i) Any transfer of an account (e.g., by sale or assignment for 

collection) to a third party; and

(ii) Any cure of the consumer's failure to abide by the terms of the 

account or other relationship.

II. Establishing and Implementing Policies and Procedures

In establishing and implementing its policies and procedures, a furnisher should:

(a) Identify practices or activities of the furnisher that can compromise the accuracy 

or integrity of information furnished to consumer reporting agencies, such as by:

(1) Reviewing its existing practices and activities, including the technological 

means and other methods it uses to furnish information to consumer reporting agencies 

and the frequency and timing of its furnishing of information;

(2) Reviewing its historical records relating to accuracy or integrity or to 

disputes; reviewing other information relating to the accuracy or integrity of information 

provided by the furnisher to consumer reporting agencies; and considering the types of 

errors, omissions, or other problems that may have affected the accuracy or integrity of 

information it has furnished about consumers to consumer reporting agencies;

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(3) Considering any feedback received from consumer reporting agencies, 

consumers, or other appropriate parties;

(4) Obtaining feedback from the furnisher's staff; and

(5) Considering the potential impact of the furnisher's policies and procedures 

on consumers.

(b) Evaluate the effectiveness of existing policies and procedures of the furnisher 

regarding the accuracy and integrity of information furnished to consumer reporting agencies; 

consider whether new, additional, or different policies and procedures are necessary; and 

consider whether implementation of existing policies and procedures should be modified to 

enhance the accuracy and integrity of information about consumers furnished to consumer 

reporting agencies.

(c) Evaluate the effectiveness of specific methods (including technological means) 

the furnisher uses to provide information to consumer reporting agencies; how those methods 

may affect the accuracy and integrity of the information it provides to consumer reporting 

agencies; and whether new, additional, or different methods (including technological means) 

should be used to provide information to consumer reporting agencies to enhance the accuracy 

and integrity of that information.

III. Specific Components of Policies and Procedures

In developing its policies and procedures, a furnisher should address the following, as 

appropriate:

(a) Establishing and implementing a system for furnishing information about 

consumers to consumer reporting agencies that is appropriate to the nature, size, complexity, and 

scope of the furnisher's business operations.

(b) Using standard data reporting formats and standard procedures for compiling and 

furnishing data, where feasible, such as the electronic transmission of information about 

consumers to consumer reporting agencies.

(c) Maintaining records for a reasonable period of time, not less than any applicable 

recordkeeping requirement, in order to substantiate the accuracy of any information about 

consumers it furnishes that is subject to a direct dispute.

(d) Establishing and implementing appropriate internal controls regarding the 

accuracy and integrity of information about consumers furnished to consumer reporting agencies, 

such as by implementing standard procedures and verifying random samples of information

provided to consumer reporting agencies.

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(e) Training staff that participates in activities related to the furnishing of information 

about consumers to consumer reporting agencies to implement the policies and procedures.

(f) Providing for appropriate and effective oversight of relevant service providers 

whose activities may affect the accuracy or integrity of information about consumers furnished 

to consumer reporting agencies to ensure compliance with the policies and procedures.

(g) Furnishing information about consumers to consumer reporting agencies 

following mergers, portfolio acquisitions or sales, or other acquisitions or transfers of accounts 

or other obligations in a manner that prevents re-aging of information, duplicative reporting, or 

other problems that may similarly affect the accuracy or integrity of the information furnished.

(h) Deleting, updating, and correcting information in the furnisher's records, as 

appropriate, to avoid furnishing inaccurate information.

(i) Conducting reasonable investigations of disputes.

(j) Designing technological and other means of communication with consumer 

reporting agencies to prevent duplicative reporting of accounts, erroneous association of 

information with the wrong consumer(s), and other occurrences that may compromise the 

accuracy or integrity of information provided to consumer reporting agencies.

(k) Providing consumer reporting agencies with sufficient identifying information in 

the furnisher's possession about each consumer about whom information is furnished to enable 

the consumer reporting agency properly to identify the consumer.

(l) Conducting a periodic evaluation of its own practices, consumer reporting agency 

practices of which the furnisher is aware, investigations of disputed information, corrections of 

inaccurate information, means of communication, and other factors that may affect the accuracy 

or integrity of information furnished to consumer reporting agencies.

(m) Complying with applicable requirements under the FCRA and its implementing 

regulations.

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ATTACHMENT C

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 contained 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 in15 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. 

(d) 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. 

(e) 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; 

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

investigation to the consumer before the expiration of the period undersection 611(a)(1) 

of the FCRA (15 U.S.C. 1681i(a)(1)) within which a consumer reporting agency would 

be required to 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. 

(f) 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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ATTACHMENT D

15 U.S.C. § 1681i – Procedure in case of disputed accuracy.

(a) Reinvestigations of disputed information 

(1) Reinvestigation required 

(A) In general 

Subject to subsection (f) of this section, 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.

Case 3:16-cv-01255-D Document 4-5 Filed 05/09/16 Page 1 of 1 PageID 43