CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact

News

Home » FCRA covers factual inaccuracies, doesn’t resolve legal disputes
Policy & Issues

FCRA covers factual inaccuracies, doesn’t resolve legal disputes

February 17, 2023
Equifax

CUNA joined with other financial services organizations in an amicus brief to clarify that the Fair Credit Reporting Act (FCRA) requires furnishers and credit reporting agencies (CRA) to investigate and remove factually inaccurate information, but not to correctly resolve all legal disputes about a debt. The amicus brief was filed in the U.S. Court of Appeals for the 11th Circuit.

The consolidated lawsuit involves two plaintiffs suing Holiday Inn Club Vacations, Inc., after ceasing payments on timeshares. Holiday Inn reported the non-payment to CRAs, and the plaintiffs sued Holiday Inn under the FCRA for furnishing “inaccurate” information about their debts.

“The text, structure, history, and purpose of the FCRA all demonstrate that the statute requires furnishers and CRAs to investigate and verify factual accuracy, not assess or resolve legal disputes,” the brief reads.

The brief argues that the statute requires CRAs to “determine whether” disputed information is inaccurate.

“CRAs and furnishers can readily ‘determine’ and ‘find’ whether disputed information is factually error-free,” it reads. “But only courts of law have the capacity to conclusively ‘determine’ or ‘find’ that information in a credit file is legally valid.

“The FCRA’s structure and purpose reinforce the natural reading of the statutory text,” it adds. “Congress explained that the statute was designed to ensure ‘fair and accurate credit reporting’… Accordingly, the FCRA’s provisions work together to ensure that the information in a consumer’s credit report accurately represents her creditworthiness.”

CUNA filed briefs with similar arguments in the 2nd Circuit Court of Appeals and another 11th Circuit Court of Appeals lawsuit last year.

Credit Union Magazine: Spring 2023

Spring 2023

Credit Union Magazine’s Spring 2023 issue features the 2023 Credit Union Heroes and examines CUNA-League advocacy priorities, board leadership, the impact of financial well-being efforts, fee-related compliance issues, predictions for the year ahead, and more.
Digital Edition •  Subscribe

Trending

  • CUNA Mascot Madness: Voting opens for East Region

  • Mascot Madness: East winner crowned; Midwest voting opens

  • League leaders highlight credit union difference, safety, soundness

Tweets by CUNA_News

Polls

CUNA Mascot Madness: Which West Region mascot is your favorite?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us