Is the ACDV System Compliant? No.

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Is the ACDV System Compliant? No.

Postby ChrisGreen » Mon Jul 28, 2014 11:21 am

Some courts that have addressed the issue of whether the ACDV system and its use of codes to convey the relevant consumer information complies with the FCRA. See Davis v. Equifax Information Services LLC, 346 F. Supp. 2d 1164, 1176 (N.D. Ala. 2004) (where consumer did not know what information CRA asked furnisher to investigate and consumer's only evidence that CRA failed to convey "all relevant information" to furnisher was fact that CRA conveyed the information electronically, court granted summary judgment for CRA); Perry v. Experian Info. Solutions, No. 05C1578, 2005 U.S. Dist. LEXIS 26040, *22-23 (N.D. Ill. Oct. 28, 2005) (based on scant information in consumer's dispute letters, CRA's reinvestigation using ACDVs was reasonable); and Lee v. Experian Info. Solutions, No. 02C8424, 2003 U.S. Dist. LEXIS 17420, at 19-20 (N.D. Ill. Oct. 2, 2003) ("[T]he CDV procedure alone is accepted by courts as an adequate method both for assuring accuracy and for reinvestigation" (citing Dickens v. TransUnion Corp., 18 Fed. Appx. 315, 319 (6th Cir. 2001))).

Courts have found that under particular circumstances, the CRA should take additional steps to override or correct the standard procedures when it knows or should know those procedures are not functioning properly in that case. See Apodaca v. Discover Financial Services, 2006 U.S. Dist. LEXIS 12505, *32 (D.N.M. Mar. 2, 2006) (where potential harm to the consumer is great and the consumer provides specific and detailed information, a rational factfinder may find this "weigh[s] strongly in favor of investing the resources necessary to complete a more thorough investigation that goes beyond the minimal CDV procedure," which the CRA knew would be inadequate to correct the problems created by its reporting procedures); and Soghomonian v. U.S., 278 F. Supp. 2d 1151, 1157 n.3 (E.D. Cal. 2003) (CRA acted unreasonably in failing to provide furnisher with copy of IRS document supplied by the plaintiffs that proved the plaintiffs' tax lien had been extinguished). Thus, the issue of whether the CRA has conveyed "all relevant information" is a fact-dependent one.
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