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TL has to be marked as "Disputed" - at what point?

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I wanted to start a new thread since this was brought up in two other threads...


The question posed is if a consumer disputed a debt to a CA, are they required, per the FDCPA, to mark the TL as disputed.


First, I'd like to state that I have NOT looked thru my cases, as they are just bunched together without any kind of order. I will do that as I have time, but I've been working a lot recently and don't have a whole lot of free time except during the weened.




Section 807(8) prohibits "Communicating or threatening to communicate to any person [false] credit information . . ., including the failure to communicate that a disputed debt is disputed."


1. Disputed debt. If a debt collector knows that a debt is disputed by the consumer, either from receipt of written notice (section 809) or other means, and reports it to a credit bureau, he must report it as disputed.


2. Post-report dispute. When a debt collector learns of a dispute after reporting the debt to a credit bureau, the dispute need not also be reported.





As we all know, these are just FTC opinions. I'm not saying they are incorrect....



Now, I recall reading a case where the court said that the TL must be marked as disputed within a reasonable amount of time... which I think was 4-6 weeks give or take.


However, I don't remember if the consumer had disputed the TL with the CRA, or if the CA had updated the tradeline without adding the "Dispute" notation. It's very possible the case I'm thinking about had the consumer dispute the TL, which would be in line with the FTC opinion.


1692e(8) does involve communicating, rather then "they need to mark the TL as dispute". I know it's a simple sentence, and I've read it over and over and over again seeing if it could mean anything else. (I like to go thru the FDCPA word by word to make sure I understand the meaning behind everything being stated)



As of now, I agree with Pryan. (Mark this date down!!! :grin: )


If anyone knows of other caselaw that either agrees with the FTC, or says that the CA needs to mark the TL as disputed regardless of a consumer disputing with the CRA, please post it.


Now, keep in mind.. if the CA routinely updates the TL each and every month, regardless of a dispute with the CRA, then they sure as heck better mark it as dispute. In that case, there would be no reason for them not to.



Bottom line - just another reason why is it so important to make sure you do things in the proper order... cause if you dispute with the CRAs until they refuse to accept a dispute from you... and then you send a DV to the CA... you're kindof out of luck unless the CA updates the tradeline.




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EXCELLENT advice here....


to my knowledge, there's NO requirement for the CA to go out of their way to report it as "in dispute"...in other words...if they aren't communicating information regarding the debt, they don't have to report the dispute...



so ALWAYS follow the proper procedures...

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