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This entry was published on 2014-09-22
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Procedure for resolving disputes
General Business (GBS) CHAPTER 20, ARTICLE 25
§ 380-f. Procedure for resolving disputes. (a) If a consumer disputes
any item of information contained in his file, and such dispute is
directly conveyed to the consumer reporting agency by the consumer, the
consumer reporting agency shall promptly re-investigate and record the
current status of such information, unless it has reasonable grounds to
believe that the dispute by the consumer is frivolous, and it shall
promptly notify the consumer of the result of its investigation, its
decision on the status of the information and his rights pursuant to
this section. The presence of contradictory information in a consumer's
file shall not, in and of itself, constitute reasonable grounds for
believing the dispute is frivolous.

(b) If, after conducting the re-investigation required by subdivision
(a) of this section, the consumer reporting agency finds that an item is
in error or that it can no longer be verified, it shall:

(1) promptly expunge the item and otherwise correct the file,

(2) refrain from reporting the item in subsequent consumer reports,

(3) clearly and conspicuously disclose to the consumer his rights to
make a request for notification and upon request of the consumer,
promptly notify any person designated by the consumer who has received
information regarding the item during the previous year that an error
existed, and shall furnish such person with the corrected information,

(4) where applicable forward a copy of the consumer's statement
pursuant to subdivision (c) of this section.

(c) If, after conducting a re-investigation pursuant to this section,
the consumer reporting agency is unable to resolve any remaining
differences between the statements made by its sources and the consumer,
it shall:

(1) promptly indicate in the file that the item is disputed,

(2) permit the consumer to file a statement concerning the nature of
the dispute, which statement may be limited by the agency to not more
than one hundred words if such agency provides the consumer with
assistance in writing a clear summary of the dispute,

(3) include the consumer's statement of the dispute in all subsequent
credit reports containing the information in question, and

(4) clearly note in all subsequent consumer reports that the item is
disputed by the consumer.

(d) Notwithstanding any other provision of this section, if any item
disputed and reinvestigated is found to be in error or can no longer be
verified, upon completion of the reinvestigation of all items disputed,
the agency shall promptly mail the consumer a corrected written copy of
the file, reflecting any changes, with an explanation of any code used,
at no charge to the consumer.