Loan Originator Settles CFPB Charges for Consumer Reporting Violations
An originator and servicer of auto loans settled Consumer Financial Protection Bureau (the "Bureau") charges for furnishing inaccurate consumer loan data to consumer reporting agencies ("CRAs") in violation of the Fair Credit Reporting Act ("FCRA").
According to the Consent Order, the Bureau found that the company:
- failed to furnish accurate information regarding whether accounts were open or closed;
- failed to promptly update and correct information furnished to CRAs that the company knew to be incomplete or inaccurate;
- failed to provide data relating to the date of first delinquency (or "DOFD") for certain delinquent or charged-off accounts; and
- failed to establish and implement reasonable written policies regarding the accuracy and integrity of information provided to CRAs.
The alleged misconduct violated Sections 1681s-2(a)(1)(A), 1681s-2(a)(2), and 1681-2(a)(5) of the FCRA (i.e., provisions on the responsibilities of furnishers of information to CRAs) and Regulation V ("Fair Credit Reporting").
In connection with the Consent Order, the company agreed to, among other things, (i) correct all inaccuracies and errors described in the Consent Order, (ii) take all reasonable steps to identify and resolve any errors each month before providing the data to a CRA, (iii) submit a comprehensive compliance plan to the Bureau for review and the determination of non-objection, and (iv) pay a $4.75 million civil money penalty.