A lender receives notice from a consumer reporting agency about a block in a consumer report related to information the lender supplied. Until the information is proven incorrect, the lender has no obligations.

• A. True
• B. Only if the consumer requests an investigation
• C. False
• D. It depends on the amount of debt

Answer: (C)

When a consumer disputes information that a lender furnished to a credit bureau, the lender must act. The Fair Credit Reporting Act requires a reasonable reinvestigation by the furnisher and a report of the results to the credit bureau within a set period (typically 30 days). The lender cannot simply wait for proof that the information is incorrect; once a dispute is raised, the furnisher reviews and, if needed, corrects, deletes, or updates the information. If the item is still reported, it should be noted as disputed in the consumer’s file. This obligation exists to ensure accuracy and protect the consumer, regardless of whether the information eventually proves correct or incorrect.