I was reviewing the Error Resolution Procedures that were provided as part of the CMG and I have a question. The procedures do not mention or address the 60 day restriction on reporting to the credit bureau. Shouldn’t that be part of the procedures since we are not allowed to report adverse information related to an alleged error?
Then a follow up – does this mean we can not report the information even if we have determined that the error did not occur or if we have corrected all the information? Do we have to quit reporting for 60 days just because they sent us a written error notice?
Thanks for your comment/suggestion on the procedures. We’ll certainly take a look at them and notify you and all Compliance Master Group members if we make changes. In the meantime, you may customize the procedures to fit your bank and include more information as you see fit. It is certainly reasonable to include adverse reporting requirements under 1024.35(i); if you do include this information you may also want to include the information under 1024.35(g).
In regard to your second question, you are correct unless one of the requirements in 1024.35(g) are met which includes: 1) duplicative notice of error; 2) overboard notice error; or 3) untimely notice of error. Also, read beginning on page 205-206 of the preamble linked below. It explains the CFPB’s reasoning behind the adverse information timing requirement.