Debt Collector Settles CFPB Charges for Furnishing Inaccurate Data

A non-bank debt collector settled CFPB charges for furnishing inaccurate information to consumer reporting agencies ("CRAs").

As described in the Consent Order, the CFPB found that the debt collector:

• knowingly furnished inaccurate information to CRAs, in violation of Section 623(a)(1)(A) of the Fair Credit Reporting Act ("FCRA");
• failed to provide the date a delinquency commenced on certain consumer accounts, in violation of Section 623(a)(5) of the FCRA;
• failed to conduct investigations of consumer disputes, in violation of Sections 623(b)(1), 623(a)(8)(E)(i) and (iii) of the FCRA and Sections 1022.43(e)(1) and (3) of Regulation V, the regulation that implements the FCRA;
• failed to notify consumers that their "frivolous or irrelevant" disputes did not require investigation, in violation of Section 623(a)(8)(F) of the FCRA and Section 1022.43(f)(2) of Regulation V; and
• failed to maintain adequate policies and procedures regarding its furnishing of consumer information to CRAs, in violation of Section 1022.42 of Regulation V.

The CFPB also found that the debt collector, as a "covered person" engaging in violations of consumer financial law, violated Section 1036(a)(1)(A) of the Consumer Financial Protection Act.

To settle the charges, the debt collector agreed, among other things, to (i) pay a $500,000 civil money penalty, (ii) review account information on a monthly basis to assess accuracy and integrity, (iii) retain an independent consultant with "specialized experience in FCRA and Regulation V compliance" to conduct a compliance review, and (iv) not engage in future violations.