CFPB Policy Statement Addresses FCRA and Regulation V Requirements in Light of CARES Act and COVID-19

The CFPB issued a policy statement relating to supervisory and enforcement practices under FCRA and Regulation V in light of the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  The statement addresses consumer reporting furnishers’ responsibilities under the CARES Act and informs consumer reporting agencies and furnishers of the Bureau’s intention to apply a flexible supervisory and enforcement approach during the pandemic to support the confidence of all affected parties in the consumer reporting system.

Recognizing the impact on the current COVID-19 pandemic on consumer reporting agencies and furnishers that could impede timely compliance with statutory and regulatory reporting obligations, the CFPB will consider circumstances regulated entities face and their good faith efforts to comply with those obligations.

With respect to furnishing, the Bureau encourages furnishers to continue providing accurate information to consumer reporting agencies.  However, the Bureau notes the CARES Act’s amendment to FCRA requires furnishers to report as current certain credit obligations for which furnishers make payment accommodations to consumers affected by COVID-19.  For example, where furnishers offer affected consumers payment accommodations to defer or skip payments, under the CARES Act, such accommodations will avoid the reporting of delinquencies.  The policy statement notes that the Bureau does not intend to cite in examinations or take enforcement actions against furnishers of information to consumer reporting agencies that accurately reflect such payment relief measures.

With respect to disputes, the Bureau notes it will consider a consumer reporting agency or furnisher’s circumstances with respect to adhering to FCRA requirements for timely dispute investigation and reporting.  The Bureau will take into account good faith efforts to investigate disputes as quickly as possible, even if those investigations take longer than what is permitted by the statutory timeframe.