Holden v. Holiday Inn Club Vacations Inc. and Mayer v. Holiday Inn Club Vacations Inc.
To ensure fair and accurate credit reporting, the Fair Credit Reporting Act (FCRA or the Act), 15 U.S.C. § 1681 et seq., requires consumer reporting agencies (CRAs) and entities that furnish information to CRAs (furnishers)—often, but not always, creditors—to follow various requirements when they compile and disseminate personal information about individuals. One of those requirements is that furnishers must reasonably investigate consumers’ disputes regarding the completeness or accuracy of the information furnished.
The Bureau filed an amicus brief in two related cases arguing that the duty to investigate applies not only to factual disputes, but also disputes that can be labeled as legal in nature. The briefs also explain that, among other things, a contrary approach is not supported by the statute, risks exposing consumers to more inaccurate credit reporting, and undercuts the remedial purpose of the FCRA.