Under what circumstances can a furnisher of information be sued under the FCRA?

A furnisher of information can be sued under the Fair Credit Reporting Act (FCRA) for failing to correct inaccurate information after receiving notice of a dispute. This aspect of the FCRA specifically mandates that once a furnisher gets a dispute from a consumer, they have a responsibility to investigate and correct any inaccuracies in the information they provided to credit reporting agencies. If they neglect this duty, it can lead to consumer harm and thus makes them liable under the FCRA.

While it is true that negligence in furnishing inaccurate or incomplete information can be problematic, the FCRA emphasizes the duty of furnishers to respond to disputes filed by consumers. In many cases, a furnisher's liability hinges on their response—or lack thereof—to a reported dispute. Consequently, the failure to address and correct inaccuracies after being notified may lead to legal consequences under the FCRA.