When a credit bureau answers your dispute by keeping the information, your rights under the Fair Credit Reporting Act do not end there. A bureau is generally required to conduct a reasonable reinvestigation of a dispute under 15 U.S.C. § 1681i(a)(1)(A). A consumer may also dispute directly with the company that reported the item, add a statement of dispute to the file, or complain to a federal agency.
A short letter saying an item was "verified" can leave open whether it is the end of the matter or only one step in a longer process. This page explains what the law requires of credit bureaus and of the companies that report to them, why a bureau may decline to remove an item, and which options the FCRA leaves open afterward.
A consumer reporting agency is a company that collects information about consumers and sells it in reports. The best-known examples are the three nationwide credit bureaus. The CFPB explains that credit reporting companies "are companies that compile and sell credit reports" (CFPB). A furnisher is the company that sent the information to the bureau in the first place, such as a bank, a card issuer, a landlord or a collection agency. A reinvestigation is the bureau's second look at an item after a consumer disputes it.
Under 15 U.S.C. § 1681i(a)(1)(A), when a consumer disputes the completeness or accuracy of an item, the agency "shall, free of charge, conduct a reasonable reinvestigation." It must then record the item's current status or delete it within 30 days of receiving the dispute. Under § 1681i(a)(1)(B), that period may be extended by up to 15 days if the consumer sends relevant information during the 30 days. Under 15 U.S.C. § 1681i(a)(1)(C), the extension does not apply if, within the 30 days, the information is found to be inaccurate or incomplete or the agency determines that it cannot be verified.
Within 5 business days of receiving the dispute, § 1681i(a)(2)(A) requires the agency to notify the furnisher and pass along "all relevant information regarding the dispute." Under § 1681i(a)(4), the agency must review and consider everything relevant that the consumer submitted. If an item is found "inaccurate or incomplete or cannot be verified," § 1681i(a)(5)(A) requires the agency to promptly delete or modify it.
The duty to investigate has a limit. Under § 1681i(a)(3), an agency may stop a reinvestigation it reasonably decides is frivolous or irrelevant, "including by reason of a failure by a consumer to provide sufficient information."
A "verified" letter can reflect more than one situation, including the three below.
The furnisher confirmed the data. The agency sent the dispute to the furnisher, the furnisher reported back that its information was correct, and the agency treated the item as not "inaccurate or incomplete" and not unverifiable under § 1681i(a)(5)(A).
The agency treated the dispute as frivolous or irrelevant. Under § 1681i(a)(3)(B), the agency must notify the consumer within 5 business days of that decision. The notice goes by mail, or by another method the consumer has authorized. Under § 1681i(a)(3)(C), the notice must give the reasons and identify the information needed to investigate. The statute says the identification may consist of a standardized form describing the general nature of that information.
The information is accurate but unfavorable. The FCRA targets incorrect information, not negative information. A late payment that really happened, or a charge-off, may stay on the report. A charge-off means the creditor wrote the account off as a loss on its books, which the statute describes as "charged to profit and loss." The FTC puts the point plainly: correct but negative information can be reported (FTC).
What the law does limit is how long negative information can stay. Under 15 U.S.C. § 1681c(a), a consumer reporting agency generally may not make a report containing accounts placed for collection or charged to profit and loss, or most other adverse items, that antedate the report by more than seven years. Under 15 U.S.C. § 1681c(c)(1), for a delinquent account placed for collection or charged to profit and loss, the seven years begin when the 180-day period that starts on the date the delinquency began expires. Bankruptcy cases may stay for 10 years. These limits do not apply to some reports, including reports for a credit transaction of $150,000 or more. Whether an item is accurate and whether it is too old are two separate questions.
Disputing Directly with the Furnisher
The FCRA also places duties on the company that furnished the information.
When a bureau forwards a dispute, 15 U.S.C. § 1681s-2(b)(1) requires the furnisher to:
- investigate the disputed information;
- review all relevant information the agency sent;
- report its results to the agency;
- report an inaccuracy to every nationwide agency it furnished the item to; and
- promptly modify, delete or permanently block an item it finds inaccurate, incomplete or unverifiable.
Under § 1681s-2(b)(2), the furnisher must finish this work within the agency's own reinvestigation period.
A consumer may also send a dispute straight to the furnisher. Regulation V is the federal rule that carries out much of the FCRA, and one of its sections, 12 C.F.R. § 1022.43, covers these direct disputes. A furnisher must reasonably investigate a direct dispute about matters such as liability for the account, its terms, payment history, or whether identity theft occurred.
The dispute must go to the address on the consumer report, to an address the furnisher has clearly specified for disputes, or, if the furnisher has specified none, to any of its business addresses. It must identify the account, explain what is wrong and why, and include supporting documents. The regulation's examples include a copy of the report, a police report, an identity theft affidavit, a court order or account statements.
The furnisher must review what the consumer sent and report its results to the consumer within the same period a bureau would have. The CFPB says furnishers "generally must investigate and respond to your dispute within 30 days" (CFPB). If the furnisher finds an error, it must promptly correct it with each bureau it reported to.
Some disputes fall outside this duty, including disputes about addresses or other identifying information, about past employers, or about inquiries.
Adding a Statement of Dispute to Your Credit Report
A statement of dispute is a short note in the file that gives the consumer's side when a reinvestigation leaves the disagreement unresolved. The CFPB describes the right this way. For unresolved disputes, a consumer may ask that "a brief statement of the dispute be included in your file and included or summarized in future credit reports" (CFPB).
The same page notes a limit. This right applies only to disputes submitted to a credit reporting company, not to disputes sent directly to a furnisher. The statute refers to the right in another setting as well. When deleted information is put back in a file, § 1681i(a)(5)(B)(iii) requires the agency to tell the consumer in writing, within 5 business days, that the consumer "has the right to add a statement to the consumer's file disputing the accuracy or completeness" of the information.
The FTC adds a related point. If a business keeps reporting information that a consumer has disputed, it must tell the bureau about the dispute, and the bureau must include a notice that the item is disputed (FTC).
A statement does not remove anything. What it does is create a record that lenders and other readers of the report can see. It is available even when the bureau did not agree with the consumer.
Filing a Complaint with the CFPB or FTC
The CFPB says consumers who disagree with a dispute result "can also submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372)" (CFPB). The same page notes that a consumer may complain to the state attorney general, and that "your state may have additional protections" beyond the FCRA.
The FTC's consumer guidance explains the dispute process and the duties of credit bureaus and businesses that supply information (FTC). Its page on free reports explains that AnnualCreditReport.com is the only authorized site for free annual reports (FTC).
A complaint adds to the paper trail alongside the dispute letters, mailing receipts and results notices. It does not guarantee that any item will be corrected or removed.
What the FCRA Makes Available When a Bureau or Furnisher Fails to Meet Its Obligations
A "verified" answer can feel final, but the FCRA provides civil liability for some failures to meet its requirements. Conduct that may violate the FCRA includes a few examples. A consumer reporting agency may violate § 1681i(a) if it does not conduct a reasonable reinvestigation within the required period. A furnisher may violate § 1681s-2(b) if it does not investigate a dispute a bureau forwarded. Whether a particular situation is a violation depends on its facts, including what was disputed, what was sent, and what each company did in response. Under 15 U.S.C. § 1681s-2(c) and (d), sections 1681n and 1681o do not apply to a violation of 15 U.S.C. § 1681s-2(a), including regulations issued under it, and the federal and state agencies and officials the statute identifies enforce that subsection.
For willful noncompliance, 15 U.S.C. § 1681n(a) makes potentially available "any actual damages sustained by the consumer as a result of the failure or damages of not less than $100 and not more than $1,000." It also makes available "such amount of punitive damages as the court may allow." In a successful action, the court may award costs and reasonable attorney's fees.
For negligent noncompliance, 15 U.S.C. § 1681o(a) makes potentially available actual damages caused by the failure. In a successful action, the court may also award costs and reasonable attorney's fees.
Both sections also say that if a court finds a filing was made in bad faith or to harass, it shall award the other side attorney's fees. The CFPB notes that "time limits apply to bringing a lawsuit" (CFPB). The consumer lawsuit overview explains how these cases work under federal law.
If You'd Like a Consumer Rights Case Review
A dispute that came back "verified" leaves a trail: the original dispute letter, what was attached to it, the bureau's results notice, any frivolous-dispute notice, and anything sent to or received from the furnisher. This page does not cover credit repair services, debt settlement or bankruptcy.
A reader may request a consumer rights case review through Federal Consumer Rights. For a broader look at federal consumer protections, see the consumer rights attorney overview.
