Creditor's Duty to Make Accurate Reports Under the FCRA

Is a car dealer violating the FCRA if it makes only negative reports to the credit bureaus?

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Bill's Answer: Bills.com Resident Expert

You bought a vehicle from a dealer that has a reputation for providing negative reports and no positive reports to the consumer credit reporting agencies (commonly called "credit bureaus"). You returned the vehicle to the dealer -- i.e., you voluntarily repossessed your vehicle. Now you wonder whether the dealer is prohibited from reporting this negative event on your credit report if the dealer does not make positive reports regarding its customers.

I can find no rule in the Federal Credit Reporting Act that requires a person furnishing any information relating to a consumer to any consumer reporting agency to report both positive and negative information. The FCRA requires that furnishers report accurate (Section 623(a)(1)), complete and updated information (Section 623(a)(2)).

Therefore, as long as the reports the vehicle dealer is making to the credit bureaus are accurate -- positive or negative -- then the dealer is in compliance with the FCRA.

Regarding your primary issue, see the Bills.com resource Voluntary Repossession to learn more about the rights of creditors and consumers in this situation.

I wish you the best of luck in resolving your financial difficulties, and hope that the information I have provided helps you Find. Learn. Save.

Best,

Bill

Bills.com

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