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 Posted: Thu Jul 17, 2008 1:01 pm Subject: FCRA 623 Question |
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I need a little help understanding this part of 623(7)?? Please explain the last part on
| Quote: | COORDINATION WITH NEW ACCOUNT DISCLOSURES" at the end of this post?? What does it really mean??
(7) NEGATIVE INFORMATION-
(A) NOTICE TO CONSUMER REQUIRED-
(i) IN GENERAL- If any financial institution that extends credit and regularly and in the ordinary course of business furnishes information to a consumer reporting agency described in section 603(p) furnishes negative information to such an agency regarding credit extended to a customer, the financial institution shall provide a notice of such furnishing of negative information, in writing, to the customer.
(ii) NOTICE EFFECTIVE FOR SUBSEQUENT SUBMISSIONS- After providing such notice, the financial institution may submit additional negative information to a consumer reporting agency described in section 603(p) with respect to the same transaction, extension of credit, account, or customer without providing additional notice to the customer.
(B) TIME OF NOTICE-
(i) IN GENERAL- The notice required under subparagraph (A) shall be provided to the customer prior to, or no later than 30 days after, furnishing the negative information to a consumer reporting agency described in section 603(p).
(ii) COORDINATION WITH NEW ACCOUNT DISCLOSURES- If the notice is provided to the customer prior to furnishing the negative information to a consumer reporting agency, the notice may not be included in the initial disclosures provided under section 127(a) of the Truth in Lending Act |
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billyg35
Joined: 06 Mar 2008
Posts: 30
Debtcc Points: 331
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| Posted: Thu Jul 17, 2008 8:42 pm Subject: |
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As you can read above, furnisher's who "extend credit ... and regularly report" to the bureaus (this wording specifically excludes collection agencies...) have to provide you with a notice either right before, or within 30 days after they report negative information about your account.
The notice itself is pretty short; you can see more about it, and samples, at the Electronic Code of Fed Regulations
I'm sure somewhere along the way, some company thought "Hey if we just put that notice in with their loan paperwork (or cardmember agreement), then the customer can't say we never gave it to them..." (Would save on postage too if they didn't have to mail these darn notices out all the time).
That coordination clause is just saying they can't do that -- they can't hide the notice in the fine print on your original loan docs. They have to provide you with the notice on or about the time they are actually going to report negatively.
In essence, if you have an open account and you are late every month, then they would have to send you that notice every month.
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DebtCruncher
Moderator
Joined: 07 Nov 2006
Posts: 1568
Debtcc Points: 17612
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| Posted: Thu Jul 17, 2008 10:30 pm Subject: |
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This is my interpretation of the clause (you should of course consult a lawyer for clarification): "Yes Your Honor, when we extended credit to billyg35 we did not tell her/him -- at that time -- what we would do to her/his credit rating if s/he was late and defaulted on said credit...BUT...at a later date, when they was still current on their account or had just posted their first late, we sent them one of those super tiny printed notices on super shiny paper notifying them that we would report negatively to credit reporting agencies if s/he became late on their debt."
BTW, you make yourself proud by showing that you are actively studying the credit protection laws in order to protect your rights. Good job! 
_________________
The FDCPA is your friend -- read it.
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Codie
Joined: 08 Mar 2006
Posts: 26
Debtcc Points: 267
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| Posted: Mon Jul 21, 2008 12:25 pm Subject: ChexSystem |
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So if they report you to ChexSystem with out Notifying you that is a violation of the FCRA 623 Section 7??
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billyg35
Joined: 06 Mar 2008
Posts: 30
Debtcc Points: 331
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