FACTA: CRAs Must Block ID Theft Related Reportings

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FACTA: CRAs Must Block ID Theft Related Reportings

Postby Administrator » Sun Oct 02, 2005 7:21 pm

Credit History Restoration

Agencies must block identity-theft-related information.

FACTA adds a new section, 605B, to the FCRA that requires agencies to block identity-theft related information within 4 days of receiving specified information: proof of the consumer’s identity, a copy of an identity theft report, the consumer’s identification of the fraudulent information, and the consumer’s statement that the information does not relate to any transaction by the consumer. The agency must also notify the furnisher of the block, and furnishers must implement procedures to prevent them from re-furnishing such information (to anyone, apparently, not just the notifying agency). Although the new provision allows an agency to rescind the block under certain circumstances, the agency must both notify the consumer of the rescission and the specific reason for the rescission within 5 business days, just as an agency must notify a consumer that it is reinserting formerly deleted information. If the consumer notifies a reseller that a report contains identity-theft-caused information the reseller must block the report. Although a reseller need not notify the original furnisher of the information, it must identify the consumer agency from which the reseller obtained the fraudulent information, which will allow the consumer to enforce the right to block the information with that agency, who will then be required to notify the original furnisher. Check services companies are exempted from the blocking requirements although the provision requires them to block information identified as fraudulent for 4 business days. Although states are preempted from regulating the conduct required of agencies and resellers under the new blocking section, consumers may use the FCRA’s liability provisions to enforce it.[/u][/b]

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