In what is being called the biggest industry overhaul in a decade, the sweeping changes aim to make the credit reporting agencies more proactive in assisting consumers in the process of resolving disputes of information found on their credit reports, specifically those who were victims of identity theft and fraud, as well as those involved in mixed file situations. Trained employees must now be used by the reporting agencies to review disputes submitted by consumers and assist in looking into and helping to resolve the disputes even if a creditor states the information in question is correct. Consumers who dispute information from their free annual credit report will now also be able to procure another free copy of their report without having to wait a year.
Furthermore, the announcement included the introduction of consistent standards for the parties who are responsible for submitting the data that is typically included on a credit report – also known as data furnishers. Among the changes is the elimination of the ability to report debts that arose from medical collections that have been or are currently being paid by insurance, as well as the reporting of debts that did not result from an agreement or contract by the consumer to pay (e.g. tickets or fines). Any information submitted by data furnishers that does not include a date of birth of the authorized user will also be rejected by the credit reporting agencies as part of the agreement.
To ensure compliance with these changes, a multi-company working group will be established and tasked with regularly reviewing the data submitted by data furnishers for consistency and uniformity.
The changes are expected to be implemented nationally and are slated to come into effect within the next six to 39 months.
Source: NBC News, 3/9/2015
Posted: April 8, 2015