The consumer then filed a dispute with the consumer reporting company, which was passed to the collection agency. Because the account was never noted to be in dispute, the collection agency took no action and did not note the account in dispute even after it was handed the dispute. The consumer then filed a second dispute with the consumer reporting company, which was, again, passed to the collection agency. This time, however, the consumer stated that the account was subject to litigation and obtained a police report. As a result, the collection agency removed the delinquent account from the credit report and ceased collections. In the litigated matter, the court held for the defendant that furnishers are only obligated to investigate bona fide disputes. The CFPB recognizes that errors on a credit report can have life-altering consequences, as those errors can cause an individual to be denied loans, housing, and even employment. Due to the significant impacts an error on a credit report can have, the CFPB realizes the need for consumers to have meaningful procedures in place for companies to investigate and resolve these errors. The Fair Credit Reporting Act (FCRA) gives consumers multiple avenues to dispute errors on their credit reports. Since consumers receive their credit information from consumer Know Your Role — Continued on page 28 27
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