What must furnishers do if they receive a notice of dispute from a consumer reporting agency?

When furnishers receive a notice of dispute from a consumer reporting agency, they are required to investigate the disputed information and respond within a specified timeframe, which is typically 30 days. This requirement is part of the Fair Credit Reporting Act (FCRA), which mandates that furnishers maintain the accuracy and integrity of the information they provide to credit reporting agencies.

The investigation process involves reviewing the details of the dispute and verifying the accuracy of the reported information. If the information is found to be inaccurate or cannot be verified, the furnisher must correct or remove it from the consumer's credit report. This provision in the FCRA is crucial for protecting consumers' rights and ensuring that their credit reports are accurate and fair.

The importance of this requirement underscores the responsibility of furnishers to engage in due diligence regarding the information they supply, thus helping to uphold the principles of fairness and accuracy in credit reporting.