Answer to Credit Report Questions #1
Section 809(b) requires that, if the consumer disputes the debt or requests identification of the original creditor in writing, the collector must cease collection efforts until he verifies the debt and mails a response.
Section 809(c) states that a consumer’s failure to dispute the validity of a debt under this section may not be interpreted by a court as an admission of liability.
1. Prenotice collection. A debt collector need not cease normal collection activities within the consumer’s 30-day period to give notice of a dispute until he receives a notice from the consumer.
2. An attorney debt collector may take legal action within 30 days of sending the notice,
regardless of whether the consumer disputes the debt.
3. If the consumer disputes the debt, the attorney may still take legal action but must
cease collection efforts until verification is obtained and mailed to the consumer.
4. A debt collector may report a debt to a credit bureau within the 30-day notice period, before he receives a request for validation or a dispute notice from the consumer.
So, it based on the above information, reporting the debt AFTER receiving your dispute letter is a violation. Also, Section 1681s2 (Duty of furnishers of information to provide accurate information) of the Fair Credit Reporting Act states:
(A) Reporting information with actual knowledge of errors
A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or consciously avoids knowing that the information is inaccurate.
(B) Reporting information after notice and confirmation of errors
A person shall not furnish information relating to a consumer to any consumer reporting agency if –
(i) the person has been notified by the consumer, at the address specified by the person for such notices, that specific information is inaccurate; and
(ii) the information is, in fact, inaccurate.
Answer to Question #2
Section 1681s2 (Duty of furnishers of information to provide accurate information) of the Fair Credit Reporting Act states:
(2) Duty to correct and update information
A person who –
(A) regularly and in the ordinary course of business furnishes information to one or more consumer reporting agencies about the person’s transactions or experiences with any consumer; and
(B) has furnished to a consumer reporting agency information that the person determines is not complete or accurate, shall promptly notify the consumer reporting agency of that determination and provide to the agency any corrections to that information, or any additional information, that is necessary to make the information provided by the person to the agency complete and accurate, and shall not thereafter furnish to the agency any of the information that remains not complete or accurate.
(3) Duty to provide notice of dispute
If the completeness or accuracy of any information furnished by any person to any consumer reporting agency is disputed to such person by a consumer, the person may not furnish the information to any consumer reporting agency without notice that such information is disputed by the consumer.
I want to burn these guys for a $1000 penalty. They were rude and are intentionally damaging my credit despite having sufficient cause to confirm with MCI that this was an MCI error.
I agree and encourage you to find a local attorney to help you.