On May 20, 2015, the attorneys general of 31 states settled with three major credit reporting agencies (CRAs) for six million dollars and commitments to make a number of business practice changes. With the exception of $6 million payment–which can be seen as relatively small, all things considered–the settlement largely mirrors the CRAs’ March 2015 agreement with the New York Attorney General. Collectively, these agreements require CRAs to comply with the Fair Credit Reporting Act (FCRA), create new FCRA compliance procedures, and impose new substantive requirements focused on customer disputes and reporting of certain kinds of debt. These agreements reflect the growing focus of regulators and consumers on credit reporting issues. And, the agreements impact not only CRAs, but also creditors, other furnishers of consumer reporting information, and debt collectors in a number of important ways.
Read our client alert.