Under what circumstance must a CRA correct inaccurate information?

The obligation of a Consumer Reporting Agency (CRA) to correct inaccurate information arises when the information is found to be inaccurate, regardless of whether a consumer has requested the correction. This requirement is rooted in the Fair Credit Reporting Act (FCRA), which mandates that CRAs maintain accurate credit reporting practices.

When a CRA receives a dispute regarding the accuracy of information, it is required to investigate and verify the information in question. If the CRA determines that the information is indeed incorrect, it must then take steps to correct that information. This not only protects consumers' rights but also ensures the integrity of the information contained in consumer reports, which are used by creditors and other entities to make decisions about credit, employment, and insurance.

In contrast to this, while a consumer can request a correction, that request alone does not impose an obligation on the CRA unless the inaccuracy is verified. Public records are indeed part of the information CRAs manage, but the requirement to correct inaccuracies applies to all information, not exclusively public records. Additionally, the idea of the CRA only correcting information when it is liable for damages is not aligned with the proactive obligation to uphold accuracy as mandated by the FCRA.