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Posted on our discussion forums by a reader... For anyone suing a CRA, thinking of suing them, or just wants to see how they "verify" the information - this is all Equifax sends to the creditor/collection agent: 
This is the form EQ sends out for EVERY investigation, not just some of them. TU and EX send out forms that look basically the same. Case law has borne out that this method of investigation is not sufficient. In Cushman vs. Trans Union, Stevenson v. TRW (Experian), and Richardson vs. Fleet, Equifax, et al, the courts ruled each and every time that the CRA couldn't merely "parrot" information from the creditors and collection agencies. They must conduct an independent REASONABLE investigation to ensure the validity of the debt and the honesty/integrity of the creditor/CA in question. This is not regarded by the courts as a reasonable investigation. Please note that name/address/prev/SSN all appear TWICE on this form. In the left hand versions of those, the CRA (EQ in this instance) fills in the information they have on file. The check boxes are there for the CA's/Creditors to mark if their computers match that information. If it DOESN'T match that information, they fill in what their computers have on the right hand version and then check the box. If the information is even CLOSE, the CRA will consider it "valid" and verify the debt--yes, even social security numbers and dates of birth. Addresses do not need to match AT ALL. EQ will simply update their files with the address the CA/creditor provides if they fill in a different address, and THAT address, valid or not, will magically become your CURRENT address on your credit file (making it insanely difficult to get correspondence going with the CRA). As for the rest of the information? If 3 portions of the form are listed as "match"...your debt has just been verified. That's ALL these CRA's do in order to "ensure" that your financial future isn't jeopardized. One thing to note in particular is the "Consumer states" box. This will often be the key piece of evidence in a S2B case. S2B cases are also referred to as "furnisher liability" cases. Consider a hypothetical identity theft situation where a California resident sees trade lines from Florida on their report. The consumer writes 47 letters explaining that the charges were incurred in Florida while the consumer lives in California. Utility bills and drivers license are copied and sent to prove residence. The consumer even (cleverly) points out that charges were incurred in Florida at the same time as legitimate charges were incurred in California. The CRA reduces the consumer complaint to "not mine" and asks the creditor to verify. In the above hypo, it would be difficult for the CRA to argue that its reinvestigation was reasonable if it did not forward all relevant information to the creditor but simply characterized the complaint as "not mine". Furnishers may try to defend a case saying they got inadequate info from the CRA. If you read the text of S2B, you'll see what I'm talking about. That is why it is a good idea to copy the furnisher on all disputes to the CRA (and include all proof sent to the CRA). One other poster responded: | I recently had my credit union change some inaccurate info. To prove they sent it to teh CRAs, they sent me copies of a "Universal Data Form" which is apparently a standard form furnishers use to send in data. Interstingly, at the top of the sheet is a box that starts with teh question" If Change makes trade current is previous delinquent history to be deleted?" with a Yes/No check off. In other words, deletion can be had if the furnisher really wants it. |
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