Editor's note: this article originally appeared at insideARM. John Rossman is the Shareholder and Chair, Creditors' Remedies and Bankruptcy Practice Group with Moss & Barnett. This article takes a deep dive into the credit reporting / FCRA implications of the CFPB's recent action and what collections & recovery executives should take away from it.

On July 26, 2022, the CFPB issued a record Fair Credit Reporting Act (FCRA) penalty of more than $19 million against Hyundai Capital America, a creditor/furnisher of consumer information to the credit bureaus, alleging that they failed to remedy harmful inaccuracy issues that persisted for several years. The CFPB had previously issued a penalty of nearly $2 million against a debt collector that also allegedly failed to report accurate consumer information to the credit reporting agencies. 

These two actions by the CFPB that resulted in millions of dollars in penalties provide specific guidance on steps that every company reporting consumer information to the credit reporting agencies must take to avoid violations of the law.

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