Common things CRAs do or don't do. If I'm wrong, please do not hesitate to correct me. Statement 1: I disputed a TL with CRA, they requested more information from me, now I have to send them a copy of my DL or my SS card and a notarized statement of my address or a copy of a utility bill that shows my address. ··· FALSE ··· [color=0066FF]§ 611 (a)(1)(A) In general. If the completeness or accuracy of any item of information contained in a consumer's file at a consumer reporting agency is disputed by the consumer and the consumer notifies the agency directly of such dispute, the agency shall reinvestigate free of charge and record the current status of the disputed information, or delete the item from the file in accordance with paragraph (5), before the end of the 30-day period beginning on the date on which the agency receives the notice of the dispute from the consumer.[/color] That's it folks ... Nothing in the law obligates you to provide such evidence. In fact, you can call CRA on the phone and tell them: "I'm John Doe, SS# XXX-XX-XXXX, I dispute the account XXXX-XXXX-XXXX-XXXX as 'not mine'. Have a nice day!" and you've given them all the information they need to identify you and the TL in dispute. On the contrary, if you DO send them any other information you fall in the following trap: [color=0066FF]§ 611 (a)(1)(B) Extension of period to reinvestigate. Except as provided in subparagraph (C), the 30-day period described in subparagraph (A) may be extended for not more than 15 additional days if the consumer reporting agency receives information from the consumer during that 30-day period that is relevant to the reinvestigation.[/color] ... and another 15-day period starts ticking ... Statement 2: Your turn ...
Statement 2: I can sue the CRA, because they split my file. ··· TRUE ··· [color=0066FF]§ 609. Disclosures to consumers [15 U.S.C. § 1681g] (a) Information on file; sources; report recipients. Every consumer reporting agency shall, upon request, and subject to 610(a)(1) [§ 1681h], clearly and accurately disclose to the consumer: (1) All information in the consumer's file at the time of the request, except that nothing in this paragraph shall be construed to require a consumer reporting agency to disclose to a consumer any information concerning credit scores or any other risk scores or predictors relating to the consumer.[/color] - AND - [color=0066FF]§ 616. Civil liability for willful noncompliance [15 U.S.C. § 1681n] (a) In general. Any person who willfully fails to comply with any requirement imposed under this title with respect to any consumer is liable to that consumer in an amount equal to the sum of (1)(A) any actual damages sustained by the consumer as a result of the failure or damages of not less than $100 and not more than $1,000; (2) such amount of punitive damages as the court may allow;[/color] You applied for a loan, CRA provided just the "bad" part of your CR, you got the loan with 33% APR instead of 4.95%. Or, you didn't go to the appointment with the bank because of your split CR and just missed their promotional APR. That's actual damage. Or, you got so pissed off that you broke your collection of arrow heads. That's punitive damage. The tricky part is to apply for a loan when you see your CR is split ... Statement 3: Your turn ...
Statement 03: According to Section 604 CA has PP for review or collection of account. ··· FALSE ··· [color=0066FF]§ 604. Permissible purposes of consumer reports [15 U.S.C. § 1681b] (a) In general. Subject to subsection (c), [1]any consumer reporting agency may furnish a consumer report under the following circumstances and no other: (3) [2]To a person which it has reason to believe (A) [3]intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished [3a]and involving the extension of credit to, or [3b]review or collection of an account of, the consumer; (c) Furnishing reports in connection with credit or insurance transactions that are not initiated by the consumer. (1) In general. A consumer reporting agency may furnish a consumer report relating to any consumer pursuant to subparagraph (A) or (C) of subsection (a)(3) [4]in connection with any credit or insurance transaction that is not initiated by the consumer only if (A) [5]the consumer authorizes the agency to provide such report to such person; or (B) (i) the transaction consists of [6]a firm offer of credit or insurance;[/color] So here is the same translated into human language: [color=0066FF][1]any consumer reporting agency may furnish a consumer report under the following circumstances and no other: [2]To a person which it has reason to believe [3]intends to use the information in connection with a credit transaction involving the consumer [3a]and involving [3b]review or collection of an account of, the consumer [4]in connection with any credit or insurance transaction that is not initiated by the consumer only if [5]the consumer authorizes the agency to provide such report to such person.[/color] What that means is CRA can give your CR to CA for review or collection ONLY if YOU INITIATE the transaction, or YOU AUTHORIZE the CRA to do it. CA cannot pull even a soft inquiry, because it will not be [6]"[color=0066FF]a firm offer of credit or insurance[/color]". Statement 04: Your turn ...
So.. you are really, truly saying that the *MANY -MANY* Hard Pulls on my husband's credit reports by Asset Acceptance and various other CAs through out the last couple of years are 100% non-pp. You are sure of this? <wide eyed, almost giddy laugh>
You know ... I was really, truly surprised when I put all this together, because, as everybody else, I was convinced that CA has perfect PP for any kind of inquiry. I hope some of the CN Gurus will respond - we need more people to read it and to think about it.
Sh*t ... I think I just found it ... [color=0066FF]§ 603. Definitions; rules of construction [15 U.S.C. § 1681a] (m) Credit or insurance transaction that is not initiated by the consumer. The term "credit or insurance transaction that is not initiated by the consumer" does not include the use of a consumer report by a person with which the consumer has an account or insurance policy, for purposes of (1) reviewing the account or insurance policy; or (2) collecting the account. [/color] The only thing left is to find out if when a CA buys my account, that makes them "a person with which the consumer has an account". We didn't sign any written agreement with the CA after all ...
I would respectfully disagree with Statement 03. According to the rules of structure, paragraph 604(c) cannot be combined with paragraph 604(a) and must be read separately. Paragraph 604(c) refers only to PROMOTIONAL inquiries and does not include account reviews or collections. In fact, 603(m) specifically excludes ARs and collections from the definition of "credit or insurance transaction that is not initiated by the consumer." The way I read 604(a)(3) is that a person can legally pull your CR if you have applied with them for credit. They can also pull your CR for an account review if you have an existing (i.e. open or current) account with them. A person (i.e. original creditor or CA) can also pull your CR for collection purposes related to a specific account that is past due. The CA cannot pull a CR just to randomly search for overdue accounts to solicit collection business from creditors, but must have a specific account to review for collection purposes (which is further discussed in the Benner FTC Opinion Letter). In addition, the Long FTC Opinion Letter further supports the FTC's view that a third party CA has legal PP for collection purposes by stating the following: Section 604(a)(3)(A) allows a third party to receive a consumer report if the third party "intends to use the information in connection with a credit transaction involving the consumer . . . and involving the extension of credit to, or review or collection of an account, of the consumer." In our view, this provision is inapplicable to the residential lease outlined in your letter. Section 604(a)(3)(A) applies only to the review or collection of a credit account, as well as to an extension of credit to a consumer.
