Ftc Credit Report

Financial Report

Courtesy of the credit report: Bankruptcy dismissed bank account At the beginning of this weeks United States District Court for the Middle District of Tennessee reminds us of an important (and sometimes forgotten) fold of the Fair Credit Reporting Act ("FCRA"). At Blanch v Transunion, the applicant, April Blanch, lodged a complaint that the respondents had infringed their right under the CFRA by alleging that they had improperly declared certain USD 0 balances in certain bank account books to be involved in insolvency. In 2012, Ms Blanch declared Chapter 13 bankrupt and her debts were cancelled in June 2017.

Mrs Blanch submitted a complaint with the Credit Reporting Agencies ('CRAs') when she found that the trading facilities for the relevant bank balances were still reporting the insolvency of the bank balance. Ms Blanch stated in her case that the relevant bank balances had been cleared in her liquidation, enclosed a copy of the dismissal order and demanded that the credit rating agencies delete the bank balance in order to report the proper state.

Following the refusal of the credit rating agencies to amend their credit report on the basis of information provided to them by the accountholders about the bank balances, Blanch brought a lawsuit alleging that she had sustained credit and psychological damage as a result of the defendant's negligence and/or wilful failure to rectify the imprecise coverage.

It began its debate by pointing out that the Federal Trade Commission ("FTC") had issued a decree defining the concept of "accuracy" for credit reports to consumers: "Precision means that information that a supplier provides to a reporter about an Account or other relation with the Consumers is accurate:

1 ) shall reflect the conditions and responsibility for the bank or any other relation; 2 ) shall reflect the service and other behaviour of the customer in relation to the bank or any other relation; and 3 ) shall identify the appropriate customer. As a result, the court granted the defendant's dismissal requests and referred to the FTC's guidelines on a consumers report which is precise for declaring a bankrupt banked account as long as it claims that a zero amount is due.

"Consumers' accounts may contain an escrow bank that has been dismissed in liquidation (as well as the liquidation itself) as long as it declares a zero net, as it reflects the fact that the user is no longer responsible for the discharge of liability. "16 C.F.R. pt. 600 app'x 607(b)(6), the District Court found, citing the above mentioned terminology, that the defendant's notification of Blanch's bank accounts was neither incorrect nor complete and was not substantially deceptive.

In particular, the Court found that the invoice consisted of the following notation: "Section 13 Insolvency; information on the consumer's bank accounts; bank accounts involved in insolvency; bank accounts shut down by the creditor; balance: $0". That court came to the conclusion that this report correctly reflects an earlier guilt, the right equilibrium, and that it was settled in insolvency.

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