The Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC) recently filed an amici curiae brief, urging the U.S. Court of Appeals for the Second Circuit to overturn a district court’s judgement. The decision pertained to a furnisher’s investigation of a consumer dispute and subsequent supply of the contested information, a stance deemed reasonable under the Fair Credit Reporting Act (FCRA).
The legal dispute currently before the Second Circuit addresses whether, under the FCRA, furnishers are obligated to remove unverified data from a customer’s report. The CFPB and FTC argue that unless furnishers can substantiate the data contesting a consumer’s credibility, they should be under the legal obligation to remove such unverified or disputable information. If the court upholds this interpretation of the FCRA, the impact will be significant on furnishers who will then be obliged to carefully vet and substantiate any information that challenges a customer’s credibility.
The joint approach by the CFPB and FTC highlights their dedication to safeguarding consumer rights. They are urging the court to interpret the FCRA in a way that ensures furnishers have legal responsibility for the accuracy of the data they provide.
As this matter progresses through the legal system, legal professionals, particularly those serving corporation involved in data furnishing, will continue to keenly watch the proceedings and possible implications.
For more information, consider JD Supra’s report on this topic.