FCRA / Furnishers of Info – What is the general rule related to the investigation of direct disputes?

Compliance > FCRA
Q:  What is the general rule related to the investigation of direct disputes?   
 
A:   (a) Except as otherwise provided in this section, a furnisher must conduct a reasonable investigation of a direct dispute if it relates to:
 
(1) The consumer's liability for a credit account or other debt with the furnisher, such as direct disputes relating to whether there is or has been identity theft or fraud against the consumer, whether there is individual or joint liability on an account, or whether the consumer is an authorized user of a credit account;
(2) The terms of a credit account or other debt with the furnisher, such as direct disputes relating to the type of account, principal balance, scheduled payment amount on an account, or the amount of the credit limit on an open-end account;
(3) The consumer's performance or other conduct concerning an account or other relationship with the furnisher, such as direct disputes relating to the current payment status, high balance, date a payment was made, the amount of a payment made, or the date an account was opened or closed; or
(4) Any other information contained in a consumer report regarding an account or other relationship with the furnisher that bears on the consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living.
 
(b) Exceptions. The requirements of paragraph (a) of this section do not apply to a furnisher if:
 
(1) The direct dispute relates to:
 
(i) The consumer's identifying information (other than a direct dispute relating to a consumer's liability for a credit account or other debt with the furnisher, as provided in paragraph (a)(1) of this section) such as name(s), date of birth, Social Security number, telephone number(s), or address(es);
(ii) The identity of past or present employers;
(iii) Inquiries or requests for a consumer report;
(iv) Information derived from public records, such as judgments, bankruptcies, liens, and other legal matters (unless provided by a furnisher with an account or other relationship with the consumer);
(v) Information related to fraud alerts or active duty alerts; or
(vi) Information provided to a consumer reporting agency by another furnisher; or
 
(2) The furnisher has a reasonable belief that the direct dispute is submitted by, is prepared on behalf of the consumer by, or is submitted on a form supplied to the consumer by, a credit repair organization, as defined in 15 U.S.C. 1679a(3), or an entity that would be a credit repair organization, but for 15 U.S.C. 1679a(3)(B)(i).
 
 
This can be found in the CFPB's Regulation V, 1022.43, which you may find here:  https://www.ecfr.gov/cgi-bin/text-idx?SID=a24c19492c9536b81bc9fa4567a901e8&mc=true&node=pt12.8.1022&rgn=div5#sp12.8.1022.e
 

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