A recent federal consumer financial protection agency advisory opinion that highlights credit reporting agencies’ duty under the Fair Credit Reporting Act (FCRA) to assure maximum possible accuracy in consumer credit reports – free of “junk” or “facially false” data – went into effect Wednesday, according to a Federal Register notice.
“Because of the importance of consumer report accuracy to businesses and consumers, the structure of the FCRA creates interrelated legal standards and requirements to support the policy goal of accurate credit reporting,” the CFPB wrote. “Among these is the requirement that, when preparing a consumer report, consumer reporting agencies ‘shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.’”
The bureau said courts have recognized that in “certain instances, inaccurate credit reports by themselves can fairly be read as evidencing unreasonable procedures[.]” The aim of its advisory opinion, it said, is “to highlight that the legal requirement to follow reasonable procedures to assure maximum possible accuracy of the information concerning the individuals about whom the reports relate includes, but is not limited to, procedures to screen for and eliminate logical inconsistencies to avoid including facially false data in consumer reports.”
The opinion was announced Oct. 20 by the agency and published Wednesday in the Federal Register.
Reg lookup: Fair Credit Reporting; Facially False Data