FTC Obtains $1.1 Million in Penalties for Alleged FCRA Data Furnishing Violations

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Yesterday, the FTC announced a settlement with Credit Bureau Collection Services (“CBCS”) and its two principals for alleged violations of the data furnisher provisions of the federal Fair Credit Reporting Act. Because CBCS is a third-party debt collector subject to the Fair Debt Collection Practices Act, the FTC included follow-on FDCPA claims covering the same subject matter as the FCRA claims.

By our count, this is only the fourth case that the FTC has brought against a data furnisher since the furnisher provisions were added to the FCRA in 1997. Moreover, this is the first case in which the FTC has elucidated in detail what it believes a furnisher is required to do when investigating information that has been disputed by a consumer.

ALLEGED VIOLATIONS

The FTC alleged that CBCS...

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Published In: Antitrust & Trade Regulation Updates, Consumer Protection Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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