Consumer complaint received 2022-04-29
Product: Credit reporting, credit repair services, or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: ENCORE CAPITAL GROUP INC. (FL)

Inaccurate Information. Section 623 ( a ) prohibits furnishers from reporting information to a XXXX if the furnisher knows or has reasonable cause to believe that the information is inaccurate.14 The statute defines reasonable cause to believe that the information is inaccurate to mean specific knowledge, other than solely allegations by the consumer, that would cause a reasonable person to have substantial doubts about the accuracy of the information.15 Duty to Correct and Update Information. A furnisher that regularly furnishes information to XXXX is also required to notify a CRA if it has determined that previously furnished information is not complete or accurate and to correct that information.16 For example, if a bank reports to a checking account verification service that a consumer 's account was closed with an outstanding negative balance, and the consumer subsequently paid off that balance, the bank would have a duty to report that the balance had been paid off.17 Duty to Provide Notice of Dispute. When a consumer disputes the completeness or accuracy of furnished information, the furnisher must note the dispute to the CRAs when furnishing the information.18 Duty to Provide Notice of Closed Accounts. Furnishers that regularly furnish information to CRAs must notify the CRAs when a consumer voluntarily closes a credit account.19 This information must be included in information regularly furnished for the period in which the account is closed. The legislative history indicates that this requirement is designed to complement the requirement in 605 of the FCRA that CRAs must indicate in a consumer report when a consumer voluntarily closes an account20 and to ensure that an account closed by a consumer does not lead to the incorrect assumption by credit grantors reviewing the consumer 's consumer report that the account was closed because the consumer failed to meet its terms. Such an assumption could result in the denial of credit to a consumer.21 Duty to Provide Notice of Delinquency of Accounts. When an account is placed for collection, is charged to profit or loss, or a similar action is taken, and that delinquency is furnished to a CRA, the furnisher must notify the CRA of the date of delinquency on the account no later than 90 days after furnishing the information.22 This date is the month and year the account first becomes delinquent, not when the creditor places the account for collections, charges the account to profit or loss, or takes a similar action. For example, if an account became delinquent in XX/XX/XXXX but the creditor waited until XX/XX/XXXX to sell it to a collection agency, the date of delinquency is XX/XX/XXXX. XXXX XXXX XXXX XXXX XXXX XXXX, at XXXX ( XXXX ). 

Identity Theft. Furnishers are required to maintain reasonable procedures to respond to notifications from the CRAs under 605B relating to information resulting from identify theft in order to prevent the refurnishing of this information. In addition, when a consumer submits an identity theft report to a furnisher indicating that furnished information resulted from identity theft, the furnisher may not report the information to the CRAs unless the furnisher subsequently knows or is informed by the consumer that the information is correct.23 Negative Information. If a financial institution that extends credit and regularly furnishes information to a nationwide CRA furnishes negative information to the CRAs about a consumer credit extension, it must provide a clear and conspicuous written notice to the consumer indicating that it furnished negative information to the CRAs. The notice must be provided to the consumer no later than 30 days after furnishing the negative information. After providing the notice, the financial institution is not required to send the consumer additional notices if it furnishes additional negative information to the CRAs about the same transaction, credit extension, account, or consumer.24 Two model forms ( Furnishing Negative Information ) are available in Appendix B of Regulation V. Appropriate use of one of the two model notices in Regulation V provides a safe harbor for complying with the notice requirement in 623 ( a ) ( 7 ). See Appendix B of Regulation V.