FTC Reports to Congress on the FCRA Dispute Process

Section 313(b) of the 2003 Fair and Accurate Credit Transactions Act (as published in Federal Register, Vol. 69, No. 153, August 10, 2004) required the FTC and Board to jointly study the “extent to which, and the manner in which, consumer reporting agencies and furnishers of consumer information to consumer reporting agencies are complying with the procedures, timelines, and requirements under the FCRA for the prompt investigation of the disputed accuracy of any consumer information”.

The FTC’s August 2006 report concluded that “The FACT Act imposes a number of new requirements on CRAs and furnishers that should enhance the consumer dispute process and improve accuracy, including measures to reduce identity theft and new requirements on furnishers.  Many of these requirements are still being implemented, and their effects on the dispute process have yet to be seen.  The FTC and the Board believe that the FACT Act requirements should be given time to take effect before legislators and regulators consider making additional changes to the dispute process”.