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Is My Interpretation of FCRA 1681s-2 Correct?

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Pancakes40

Junior Member
What is the name of your state (only U.S. law)? Indiana

I was reading through every provision, rule and definition of the Fair Credit Reporting Act, and cannot see how I'd be wrong to assume financial institutions (Chase, BofA, Capital One) are culpable if they don't tell you they're changing an account status in a derogatory fashion. See key phrases in BOLD:

FCRA § 1681s–2 (a)(7)(a)(i): In general If any financial institution that extends credit and regularly and in the ordinary course of business furnishes information to a consumer reporting agency described in section 1681a (p) of this title furnishes negative information to such an agency regarding credit extended to a customer, the financial institution shall provide a notice of such furnishing of negative information, in writing, to the customer."

Subsection (B) goes on to state that this would need to happen within 30 days.

I never received anything regarding a derogatory status update, which would make the financial institution liable for damages under this section, correct?
 


What is the name of your state (only U.S. law)? Indiana

I was reading through every provision, rule and definition of the Fair Credit Reporting Act, and cannot see how I'd be wrong to assume financial institutions (Chase, BofA, Capital One) are culpable if they don't tell you they're changing an account status in a derogatory fashion. See key phrases in BOLD:

FCRA § 1681s–2 (a)(7)(a)(i): In general If any financial institution that extends credit and regularly and in the ordinary course of business furnishes information to a consumer reporting agency described in section 1681a (p) of this title furnishes negative information to such an agency regarding credit extended to a customer, the financial institution shall provide a notice of such furnishing of negative information, in writing, to the customer."

I never received anything regarding a derogatory status update, which would make the financial institution liable for damages under this section, correct?
I don't know a lot about the FCRA, but I do know that it's one thing to violate a particular section of a statute, and it's another thing to have a private cause of action for violation of that particular section of the statute (ie. to have the private right to sue someone yourself for violation of that particular section of the statute).

I am sure that others know the bottom line concerning the FCRA better than I do, but a quick and dirty Google search makes me suspect that consumers do not have any private cause of action against those who violate 1681s–2(a). I don't know if all courts concur on this, but one of the reviews below states that:
"Section 1681s-2(c) specifically exempts violations of 1681s-2(a) from private civil liability."

http://blogs.findlaw.com/second_circuit/2012/12/no-private-right-of-action-for-certain-fcra-violations.html
http://www.sclpa.com/private-right-action-fcra-erroneous-reporting/
http://www.ellislawgrp.com/article10fcra.html

On the other hand, there may be a private right/cause of action for violations of 1681s-2(b).

http://www.sixthcircuitappellateblog.com/recent-cases/sixth-circuit-joins-other-circuits-in-holding-that-fcra-creates-a-private-right-of-action-to-enforce-section-1681s-2b/

Hopefully someone who knows more about the FCRA, and in particular the private right/cause of action therein, will chime in with a more definitive statement.
 

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