CFPB Issues FCRA Compliance Bulletin Regarding Furnishing of Information to CRAs
On February 3, 2016, the CFPB issued Compliance Bulletin 2016-1 to address certain requirements that apply to furnishers of consumer information to credit reporting agencies (CRAs) under Regulation V, the implementing regulation of the Fair Credit Reporting Act (FCRA).
The bulletin reminds furnishers that they are required to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information they furnish to CRAs. The CFPB notes that in its supervisory experience, it has found that some financial institutions do not comply with these Regulation V requirements as they relate to furnishing to specialty CRAs. A furnisher’s policies and procedures must address furnishing to all CRAs, including specialty CRAs, such as the furnishing of deposit account information to CRAs.
The bulletin also reiterates that the policies and procedures required by Regulation V must be appropriate to the nature, size, complexity, and scope of each furnisher’s activities. In preparing such policies and procedures, furnishers must consider the factors listed in Appendix E to Regulation V and incorporate these factors as appropriate. The CFPB notes that the type, frequency, and nature of information furnished to CRAs can vary significantly, and there may also be significant differences in the reporting formats and codes a furnisher uses to report to different types of CRAs. To this end, an institution that furnishes both credit information to nationwide CRAs and deposit account to specialty CRAs must consider the appropriate approach for each type of furnishing in preparing its policies and procedures.
The CFPB is continuing to monitor furnishers’ compliance with the policies and procedures requirements of Regulation V, and may take appropriate supervisory and enforcement actions if it determines that a furnisher has violated Regulation V.
The bulletin can be found here: http://files.consumerfinance.gov/f/201602_cfpb_supervisory-bulletin-furnisher-accuracy-obligations.pdf.
