1681i[c]: Podell v. Citicorp

David A. Szwak

1681i[c]: Podell v. Citicorp

Postby David A. Szwak » Mon Jan 09, 2006 6:52 pm

Podell v. Citicorp Diners Club, Inc.
112 F.3d 98
C.A.2 (N.Y.),1997.
May 05, 1997

Podell contends that TRW violated § 1681i by failing to follow proper procedures in investigating the supposed indebtedness to Salon. Section 1681i(a) provides in relevant part that when a consumer disputes the completeness or accuracy of an item on his credit report, and "directly convey [s]" that dispute to the credit reporting agency, the agency "shall within a reasonable period of time reinvestigate and record the current status of that information," and, if the "information is found to be inaccurate or can no longer be verified, ... promptly delete such information." 15 U.S.C. § 1681i(a). The credit reporting agency's "reinvestigation" typically entails sending a Consumer Dispute Verification form ("CDV") to subscribers (usually creditors) that have reported a disputed account. As the district court explained, "[t]he CDV asks subscribers to check whether the information they have about a consumer matches the information on TRW's credit report. If a subscriber fails to respond to a CDV or indicates that TRW's account information is incorrect, TRW deletes the disputed information." Podell, 914 F.Supp. at 1028. If reinvestigation does not resolve an account dispute, consumers may file with their credit report "a brief statement setting forth the nature of the dispute," 15 U.S.C. § 1681i(b), which must be included "in any subsequent consumer report containing the information in question" along with a notation that the matter is disputed by the consumer. 15 U.S.C. § 1681i(c).
After reinvestigating a disputed account, TRW sends to the consumer who filed the dispute an updated credit report that includes notice of the consumer's right to file the "brief statement" of dispute. Podell, 914 F.Supp. at 1028. The updated report serves as a confirmation of the reinvestigation process: if reinvestigation discloses an inaccuracy, the report reflects that the inaccurate entry has been deleted; if reinvestigation confirms that the debt is valid, the updated report retains the entry, but in addition advises the consumer of his right to file the statement pursuant to §§ 1681i(b) and (c). Id.
Podell "categorically denies that he ever received a [written] confirmation of TRW's reinvestigation" of the Salon account, "which TRW was required to provide under the FCRA (15 U.S.C. § 1681i)"; and he alleges that "TRW failed to give [him] the right to have TRW include in his credit file 'a brief statement setting forth the nature of the dispute' pursuant to 15 U.S.C. § [§ ] 1681i(b) and (c)." Appellant's Brief at 7. [FN3] The nub of Podell's argument is that because he never received an updated credit report from TRW confirming the validity of the Salon debt, he never received notice of--and never could exercise--his statutory right to place a statement in his credit file explaining (to his potential creditors) that he disputed the Salon *102 debt and setting forth his reasons for doing so. [FN4]


FN3. Podell makes a further claim, that "there is ample evidence that the investigation was not performed properly inasmuch as TRW's documents do not match the investigation complaint by [Podell]." Appellant's Brief at 7. We have examined the documents cited in reference to this claim--which is not further illuminated in Podell's briefs--and find that it is meritless.



FN4. Podell asserts that, "[c]learly, if such a confirmation had been sent to him, [he] would have taken advantage of his rights under the FCRA and would have requested that a statement be added to his credit report indicating that he disputed the Salon Furniture account." Appellant's Brief at 4.

David A. Szwak

Postby David A. Szwak » Mon Jan 09, 2006 6:53 pm

Podell v. Citicorp Diners Club, Inc.
914 F.Supp. 1025
S.D.N.Y.,1996.
Feb 05, 1996

Consumers have the right to see their credit information and to dispute the accuracy of their credit reports. 15 U.S.C. §§ 1681g, 1681h. The statutory procedure in case of disputed accuracy is set forth in 15 U.S.C. § 1681i. § 1681i(a) provides:
If the completeness of accuracy of any item of information contained in his file is disputed by a consumer, and such dispute is directly conveyed to the consumer reporting agency by the consumer, the consumer reporting agency shall within a reasonable period of time reinvestigate and record the current status of that information unless it has reasonable grounds to believe that the dispute by the consumer is frivolous or irrelevant. If after such reinvestigation such information is found to be inaccurate or can no longer be verified, the consumer reporting agency shall promptly delete such information. The presence of contradictory information in the consumer's file does not in and of itself constitute reasonable grounds for believing the dispute is frivolous or irrelevant.
If the credit reporting agency's reinvestigation does not resolve the dispute, "the consumer may file with the agency 'a brief statement setting forth the nature of the dispute.' " § 1681i(b). Unless there is reasonable grounds to believe that the consumer's statement of a dispute "is frivolous or irrelevant," the consumer reporting agency is required in any subsequent consumer report containing the information in question to "clearly note that it is disputed by the consumer and provide either the consumer's statement or a clear and accurate codification or summary thereof." § 1681i(c).
15 U.S.C. § 1681i(d) provides:
Following any deletion of information which is found to be inaccurate or whose accuracy can no longer be verified or any notation as to disputed information, the consumer reporting agency shall, at the request of the consumer, furnish notification that the item has been deleted or the statement, codification or summary pursuant to subsection (b) or (c) of this section to any person specifically designated by the consumer who has within two years prior thereto received a consumer report for employment purposes, or within six months prior thereto received a consumer report for any other purpose, which contained the deleted or disputed information. The consumer reporting agency shall clearly and conspicuously disclose to the consumer his rights to make such a request. Such disclosure shall be made at or prior to the time the information is deleted *1032 or the consumer's statement regarding the disputed information received.


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