Fair Credit or UDAAP

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  • #6083

    A question we received from one of our members:

    We had a request from a customer to change past dues we had reported to the credit bureau(even though they were past due). Our board wants to comply with his request. My question is could this be a fair credit or UDAAP issue because we would not do this for other customers?


    I agree that you should be consistent with your reporting. If you report information it needs to be accurate. Take a look at the FCRA:
    § 623. Responsibilities of furnishers of information to consumer reporting agencies [15 U.S.C. § 1681s-2]
    (a) Duty of Furnishers of Information to Provide Accurate Information
    (1)Prohibition(A) Reporting information with actual knowledge of errors. A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate.
    Additionally, if you were to do this frequently for one class/group of borrowers and not for others it could possibly be seen an ECOA issue as it might be seen as the bank influencing what type of credit is potentially offered to a particular class of individuals. It doesn’t sound like this is your situation, but it is just something to consider.

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