CRA_DR_Blue_V2.0.jpg
Intelicrunch_Banner_Header.jpg

CFPB Statement Clarifies Credit Reporting And CARES Act


On April 1, 2020, as the nation was in the beginning stages of its COVID-19 shutdown and companies, including financial institutions, encountered operational challenges, the CFPB released a statement on supervisory enforcement regarding the Fair Credit Reporting Act (FCRA) and the CARES Act (the “Statement”). In discussing investigating disputes, the CFPB recognized the operational disruptions taking place that could affect a furnisher’s ability to respond to disputes within the timeframes provided by the FCRA and implied that it would consider a furnisher’s good faith efforts to comply even if the deadlines to investigate and respond to disputes were not strictly met. Given the national emergency, the CFPB indicated that it would look at several factors before taking enforcement action.

Although the Statement did not appear to be political, almost immediately after it was issued, several attorneys general, other politicians, and former director Richard Cordray chastised the CFPB for not strictly enforcing the statutory time periods in the FCRA. Their contention was that now more than ever, consumers needed the protections offered by the CFPB. This criticism did not account for the operational difficulties faced by furnishers and appears to have been based upon a belief that the Statement signaled an intention by the CFPB to forego enforcement of the FCRA, rather than merely a recognition that furnishers should not be penalized for making a good faith effort to overcome initial operational limitations.

Responding to this criticism and questions that have arisen largely from furnishers trying to navigate credit reporting under the CARES Act, on June 16 the CFPB issued “Consumer Reporting FAQs Related to the CARES Act and COVID-19 Pandemic.” The CFPB clarified that it expects all furnishers to make good faith efforts to investigate disputes quickly and within the statutory time frame. However, it reiterated that it will consider individual circumstances that consumer reporting agencies and furnishers face due to COVID-19 in deciding whether to take enforcement action. FULL ARTICLE

© 2020  InteliCrunch.com

InteliCrunch is a free service provided by a collective of people who monitor the background screening industry and how events affect not only the people in it, but even more importantly, the real human impact the industry has on today's society.*All third party logos and / or images used on this website are the sole property and / or registered trademarks of their respective companies or copyright holders. Use of these logos, images or likenesses does not, in any way, imply the endorsement of InteliCrunch by any of the businesses, brands or individuals represented, their parent companies, officers, employees, partners, or affiliates. Any such usage is for informational / news purposes only.  Any / all articles, announcements, releases or third-party-authored content is / are linked back to the original "source"  and author credit given  Furthermore, InteliCrunch is not responsible for, and does not warrant the safety of any third-party links or sites to which any viewer may be directed from InteliCrunch.  InteliCrunch has made reasonable efforts to ensure that any news or informational links on the site are from "known and reputable"  sources / websites.