Under the FCRA, what must a credit reporting agency do if they receive a dispute from a consumer?

When a credit reporting agency receives a dispute from a consumer, it is required under the Fair Credit Reporting Act (FCRA) to process the dispute and conduct an investigation into the claim. This process is crucial because consumers have the right to ensure that the information reported about them is accurate and fair. The agency must take the dispute seriously and investigate the items disputed to verify their accuracy.

The FCRA sets specific timelines and guidelines for how disputes should be handled. The agency typically has 30 days to investigate the dispute and must consider all relevant information provided by the consumer. If the investigation reveals that the information was indeed inaccurate, the credit reporting agency is obligated to correct or delete the erroneous information. This provision in the FCRA is designed to protect consumers and promote fair credit reporting practices.

The other options do not align with the responsibilities outlined in the FCRA. For example, ignoring a dispute unless it comes from a lawyer would undermine consumer rights, while notifying creditors immediately may not be appropriate in every instance, as certain investigations require discretion and confidentiality. Charging a fee for disputing a claim is also inconsistent with the FCRA, as consumers are entitled to dispute inaccuracies without incurring additional costs.