We take a close look at the CDIA code options available for direct and indirect consumer disputes, their relationship to FCRA compliance, CFPB scrutiny of code use in FCRA compliance exams of furnishers, and court decisions involving alleged improper coding of disputed accounts. We also share our thoughts on best practices for furnishers in coding disputed accounts.… Continue Reading
The CFPB has issued a report titled “Payment Amount Furnishing & Consumer Reporting” that highlights changes since 2012 in the furnishing of actual payment data to consumer reporting agencies.
The report indicates that:
- Since 2012, the share of auto, student loan, and mortgage tradelines with actual payment data has generally trended upward.
The CFPB has issued a special edition of its Supervisory Highlights that focuses on compliance with the FCRA and Regulation V. The report contains two main sections, with one devoted to supervisory observations at furnishers and the other devoted to supervisory observations at consumer reporting companies (CRCs). (The report was published in yesterday’s Federal Register.)… Continue Reading
Recently, the Consumer Data Industry Association (CDIA) and the Metro 2 Taskforce approved a new Special Comment Code in FAQ 69. According to CDIA’s press release , the new code, “DE = Debt Extinguished Under State Law,” applies—as the code suggests—to debts that have become extinguished under applicable law.
Under most state laws, the running of a statute of limitation period precludes only the use of certain legal mechanisms (for example, filing a lawsuit, arbitration, or garnishment action) in an effort to the collect the underlying debt. … Continue Reading
The CFPB has released the Summer 2019 edition of its Supervisory Highlights. The report discusses the Bureau’s examination findings in the areas of automobile loan originations, credit card account management, debt collection, furnishing, and mortgage originations.
Key findings include the following:
Auto loan originations. Auto lenders were found to have engaged in an abusive practice by selling GAP insurance to consumers whose low loan-to-value ratios meant they would not benefit from the product. … Continue Reading