Are resellers obligated to perform traditional reinvestigations when a consumer disputes their information?

Resellers are considered entities that obtain consumer report information from credit reporting agencies (CRAs) and then sell that information to third parties. When a consumer disputes information in their report, resellers have specific obligations under the Fair Credit Reporting Act (FCRA). They are not mandated to conduct traditional reinvestigations like CRAs do, but they are required to verify the accuracy of the information they provided if a dispute arises.

If a consumer disputes the accuracy of information, the reseller must determine whether that inaccuracy is due to their own actions. This means they need to investigate the source of the data and ascertain whether it is valid or erroneous. If the reseller believes that the misinformation stems from the information they sold, they must ensure that the dispute is addressed accordingly, potentially impacting credit reporting for the consumer.

This obligation strikes a balance between protecting consumer rights and recognizing the role of resellers in the data supply chain without duplicating the reinvestigation efforts typically performed by CRAs. Therefore, the correct answer encompasses this understanding of a reseller's responsibilities in relation to consumer disputes while clarifying their limitations in the process.