HYBRID FDCPA/FRCA CODE DISPUTE LAWSUITS REQUIRE COMPANIES TO STAY A STEP AHEAD

A recent trend in consumer lawsuits has furnishers of credit reports under fire for Metro 2 code usage. The trend sees a consumer with a creative consumer advocate start by disputing a debt with a creditor or debt collector; the creditor or debt collector, as the furnisher, will then report an “XB” to the credit reporting agencies to indicate that the consumer has disputed the account information with the furnisher directly. Next, the creditor or debt collector will proceed with an investigation and report a code of “XH” at the conclusion of the investigation. The “XH” indicates that the account was previously in dispute and the furnisher has concluded the investigation. Read More