The Bureau encourages voluntary
furnishing of information to consumer reporting agencies. Section
1022.42 of this part requires each furnisher to establish and implement
reasonable written policies and procedures concerning the accuracy
and integrity of the information it furnishes to consumer reporting
agencies. Under section 1022.42(b) of this part, a furnisher must
consider the guidelines set forth below in developing its policies
and procedures. In establishing these policies and procedures, a furnisher
may include any of its existing policies and procedures that are relevant
and appropriate. Section 1022.42(c) requires each furnisher to review
its policies and procedures periodically and update them as necessary
to ensure their continued effectiveness.
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I. Nature, Scope, and Objectives of Policies and Procedures (a) Nature and Scope. Section 1022.42(a) of this part requires that a furnisher’s
policies and procedures be appropriate to the nature, size, complexity,
and scope of the furnisher’s activities. In developing its policies
and procedures, a furnisher should consider, for example:
(1) The types of business activities in
which the furnisher engages;
(2) The nature and frequency of the information
the furnisher provides to consumer reporting agencies; and
(3) The technology used by
the furnisher to furnish information to consumer reporting agencies.
(b) Objectives. A furnisher’s policies and procedures should be reasonably
designed to promote the following objectives:
(1) To furnish information about accounts
or other relationships with a consumer that is accurate, such that
the furnished information:
(i) Identifies the appropriate consumer;
(ii) Reflects the
terms of and liability for those accounts or other relationships;
and
(iii) Reflects
the consumer’s performance and other conduct with respect to
the account or other relationship;
(2) To furnish information about accounts
or other relationships with a consumer that has integrity, such that
the furnished information:
(i) Is substantiated by the furnisher’s
records at the time it is furnished;
(ii) Is furnished in a form and manner
that is designed to minimize the likelihood that the information may
be incorrectly reflected in a consumer report; thus, the furnished
information should:
(A) Include appropriate identifying information
about the consumer to whom it pertains; and
(B) Be furnished in a standardized and clearly
understandable form and manner and with a date specifying the time
period to which the information pertains; and
(iii) Includes the credit
limit, if applicable and in the furnisher’s possession;
(3) To conduct reasonable
investigations of consumer disputes and take appropriate actions based
on the outcome of such investigations; and
(4) To update the information it furnishes
as necessary to reflect the current status of the consumer’s
account or other relationship, including, for example:
(i) Any
transfer of an account (e.g., by sale or assignment for collection)
to a third party; and
(ii) Any cure of the consumer’s failure to abide by the terms
of the account or other relationship.
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II. Establishing and Implementing Policies
and Procedures In establishing and implementing
its policies and procedures, a furnisher should:
(a) Identify practices or activities of the furnisher that can compromise
the accuracy or integrity of information furnished to consumer reporting
agencies, such as by:
(1) Reviewing its existing practices and
activities, including the technological means and other methods it
uses to furnish information to consumer reporting agencies and the
frequency and timing of its furnishing of information;
(2) Reviewing its historical
records relating to accuracy or integrity or to disputes; reviewing
other information relating to the accuracy or integrity of information
provided by the furnisher to consumer reporting agencies; and considering
the types of errors, omissions, or other problems that may have affected
the accuracy or integrity of information it has furnished about consumers
to consumer reporting agencies;
(3) Considering any feedback received from
consumer reporting agencies, consumers, or other appropriate parties;
(4) Obtaining feedback
from the furnisher’s staff; and
(5) Considering the potential impact of
the furnisher’s policies and procedures on consumers.
(b) Evaluate the effectiveness of existing policies
and procedures of the furnisher regarding the accuracy and integrity
of information furnished to consumer reporting agencies; consider
whether new, additional, or different policies and procedures are
necessary; and consider whether implementation of existing policies
and procedures should be modified to enhance the accuracy and integrity
of information about consumers furnished to consumer reporting agencies.
(c) Evaluate the effectiveness of specific methods
(including technological means) the furnisher uses to provide information
to consumer reporting agencies; how those methods may affect the accuracy
and integrity of the information it provides to consumer reporting
agencies; and whether new, additional, or different methods (including
technological means) should be used to provide information to consumer
reporting agencies to enhance the accuracy and integrity of that information.
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III. Specific Components of Policies and
Procedures In developing its policies and
procedures, a furnisher should address the following, as appropriate:
(a) Establishing and implementing a system for furnishing
information about consumers to consumer reporting agencies that is
appropriate to the nature, size, complexity, and scope of the furnisher’s
business operations.
(b) Using standard data reporting
formats and standard procedures for compiling and furnishing data,
where feasible, such as the electronic transmission of information
about consumers to consumer reporting agencies.
(c) Maintaining records for a reasonable period of time, not less
than any applicable recordkeeping requirement, in order to substantiate
the accuracy of any information about consumers it furnishes that
is subject to a direct dispute.
(d) Establishing
and implementing appropriate internal controls regarding the accuracy
and integrity of information about consumers furnished to consumer
reporting agencies, such as by implementing standard procedures and
verifying random samples of information provided to consumer reporting
agencies.
(e) Training staff that participates
in activities related to the furnishing of information about consumers
to consumer reporting agencies to implement the policies and procedures.
(f) Providing for appropriate and effective oversight
of relevant service providers whose activities may affect the accuracy
or integrity of information about consumers furnished to consumer
reporting agencies to ensure compliance with the policies and procedures.
(g) Furnishing information about consumers to consumer
reporting agencies following mergers, portfolio acquisitions or sales,
or other acquisitions or transfers of accounts or other obligations
in a manner that prevents re-aging of information, duplicative reporting,
or other problems that may similarly affect the accuracy or integrity
of the information furnished.
(h) Deleting, updating, and
correcting information in the furnisher’s records, as appropriate,
to avoid furnishing inaccurate information.
(i)
Conducting reasonable investigations of disputes.
(j) Designing technological and other means of communication with
consumer reporting agencies to prevent duplicative reporting of accounts,
erroneous association of information with the wrong consumer(s), and
other occurrences that may compromise the accuracy or integrity of
information provided to consumer reporting agencies.
(k) Providing consumer reporting agencies with sufficient identifying
information in the furnisher’s possession about each consumer
about whom information is furnished to enable the consumer reporting
agency properly to identify the consumer.
(l) Conducting a periodic evaluation of its own practices, consumer
reporting agency practices of which the furnisher is aware, investigations
of disputed information, corrections of inaccurate information, means
of communication, and other factors that may affect the accuracy or
integrity of information furnished to consumer reporting agencies.
(m) Complying with applicable requirements under
the FCRA and its implementing regulations.
