furnishers

Definition

HOLDING AND REASONING: Yes. The FCRA prohibits a furnisher from reporting consumer credit information that the furnisher knows or has reasonable cause to believe is inaccurate. Companies that furnish consumer credit information to CRAs are subject to the FCRA. Under FCRA § 623, a furnisher is prohibited from providing consumer credit information to a CRA if the furnisher knows or has reasonable cause to believe that the information is inaccurate. Additionally, if a furnisher provides inaccurate or incomplete information to a CRA, then § 623 requires the furnisher to promptly correct or update the information once the furnisher determines it is inaccurate or incomplete. To decrease the risk of inaccurate reporting to CRAs, Regulation V requires to establish and implement reasonable written policies and procedures concerning the accuracy of reported information. What is considered reasonable varies depending on the complexity and scope of the furnisher’s reporting activities. Here, between 2016 and 2019, Santander routinely furnished inaccurate information to CRAs, particularly with regards to DOFDs. Based on internal audits and multiple notifications from at least one CRA, Santander knew or had reasonable cause to believe that it was reporting inaccurate information. Additionally, once aware of errors, Santander did not make efforts to promptly correct the inaccuracies. Santander has therefore violated FCRA § 623. Additionally, given the vast scope and complexity of Santander’s reporting activities, its written policies and procedures concerning the accuracy and integrity of reported information are insufficient, as Santander’s internal audit revealed in 2016. Santander is ordered to cease violating FCRA § 623 and to correct all identified inaccuracies and errors. Additionally, Santander must establish and implement reasonable written policies and procedures concerning the accuracy of its reporting and also examine the information it reports each month to identify and resolve errors before sending information to CRAs. Finally, Santander must pay a $4.75 million penalty to the bureau.