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FACTA: Furnishers Must Tell Consumer When Reporting Derog

Posted: Sun Oct 02, 2005 7:34 pm
by Administrator
Financial institution furnishers to notify customers of negative information.

The FCRA now requires a financial institution to notify a customer that it is furnishing negative information about that customer; however, financial institutions may take advantage of a safe harbor provision. Once notified about an account, it appears there is no other requirement entitling the consumer to receive further notices when additional negative information is reported about that account. The notice must be given within 30 days of reporting negative information. The Federal Reserve Board is to provide a model notice not to exceed 30 words. A financial institution may provide the notice without submitting the negative information. This is an unusual means of providing notice since it would not be accurate. The notice may not be included with disclosures under ยงยง 127 of the Truth In Lending Act. This provision appears to be unenforceable by private consumers actions under this law.