How many days does a CRA have to notify a consumer about a termination of reinvestigation if it is deemed frivolous?

The correct answer is that a Consumer Reporting Agency (CRA) must notify a consumer within 5 business days if it deems a reinvestigation request to be frivolous. Under the Fair Credit Reporting Act (FCRA), when a consumer disputes the accuracy of information contained in their credit report, the CRA is required to investigate the matter. However, if the CRA concludes that the dispute is frivolous—meaning it lacks sufficient information to warrant further investigation—it has a specific timeframe to inform the consumer of this decision.

This 5 business days deadline helps to provide consumers with timely information regarding their disputes, enabling them to understand the status of their requests and take any necessary further actions if they disagree with the CRA's assessment. The determination of a dispute as frivolous generally hinges on criteria such as whether the consumer provided enough information for the CRA to continue its investigation or if the request is deemed unreasonable.

Thus, understanding this 5-day notification requirement is crucial for both consumers and those working within the credit reporting industry, as it reflects the balance the FCRA seeks to achieve between protecting consumers' rights and allowing CRAs to manage disputes effectively.