Maryland Legal Alert for Financial Services

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CFPB Releases 2024 Supervisory Highlights on Furnisher Deficiencies

The Consumer Financial Protection Bureau (CFPB) recently released its Spring 2024 “Supervisory Highlights”. This edition highlights several deficiencies by furnishers of credit data to credit reporting agencies (CRAs), including the failure to comply with provisions of the Fair Credit Reporting Act (FCRA) and its implementing of Regulation V. These deficiencies involve the accuracy of information furnished to CRAs, the duty to conduct reasonable investigations of direct disputes, the duty to notify CRAs of direct disputes and delinquent accounts, and the duty to obtain consumer consent prior to submitting identity theft reports.  Additional CFPB guidance concerning conducting investigations of consumer disputes is available here and here

The CFPB recommended that furnishers of consumer credit data update their policies to:

  1. Ensure that CRAs are promptly notified of fraudulent accounts;
  2. Address how furnishers will notify CRAs of direct disputes;
  3. Enable reasonable investigations of direct disputes;
  4. Ensure that furnishers accurately report dates of first delinquencies to CRAs; and
  5. Ensure that information relating to identifying theft reports is furnished after the completion of an investigation

Additionally, the CFPB urged furnishers to review existing consumer accounts to ensure that reporting and dispute investigation have been compliant with the FCRA and Regulation V.  

Practice Pointer: Furnishers should review previous CFPB guidance on establishing reasonable policies and procedures regarding the accuracy and integrity of information, conducting investigations, and investigating disputes to ensure compliance with FCRA and Regulation V. 

For more information, contact Christopher R. Rahl or Tamia J. Morris.

Contact Christopher R. Rahl | 410-576-4222

Contact Tamia J. Morris | 410-576-4021