Date: February 16, 2016
To All SLG Clients and Affiliates.
From: Spencer Scheer
Subject: Client Alert: CFPB Mandates Written Policies and Procedures for Credit Reporting.
Credit Reporting violations are proliferating. The cost to lenders is rising as more borrowers’ counsel discover that uncertainty in reporting requirements and the costs of resolving even meritless claims can lead to quick settlements. In a worst case scenario, class action liability can be established.
The CFPB has just “weighed in” and will be taking a more active role to ensure that “furnishers of information” have policies and procedures to ensure accuracy. The absence of such policies and procedures, could in and of itself be used to establish that violations are willful or reckless under the FCRA and increase the cost to resolve a case.
The following is a short summary of the CFPB Bulletin. Prepare now!!
CFPB Compliance Bulletin: Furnisher Obligations to Establish and Implement FCRA Policies and Procedures to Ensure Accuracy (Issued February 4, 2016).
The CFPB finds that financial institutions have not been compliant with obligations under Regulation V (See 74 FR 31484 (July 1, 2009), requiring accuracy and integrity of information reported to a credit reporting agency. The CFPB requires that furnishers of information establish and implement written policies and procedures to ensure this occurs. These obligations are independent of FCRA requirements.
The policies and procedures must be appropriate to the nature, size, complexity and scope of each furnisher’s activities. When creating required policies the furnishers must consider the factors listed in the “Interagency Guidelines Concerning the Accuracy and Integrity of Information Furnished to Consumer Reporting Agencies” and incorporate those guidelines that are appropriate”. 
Please call me if you would like to discuss
 Go to : https://federalregister.gov/a/2016-01987 for the entire bulletin.
Fields Marked With An “*” Are Required