FCRA 623 Question

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.

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! :)

So if they report you to ChexSystem with out Notifying you that is a violation of the FCRA 623 Section 7??