5.5 KiB
5.5 KiB
Credit Bureau Reporting for DRE — Quick Reference
Authority: FCRA (15 U.S.C. §§ 1681–1681x) + Texas Fin. Code Ch. 392
Can DRE Report to Consumer Credit Bureaus?
| Debt Type | Report to Equifax/Experian/TransUnion? | Rules |
|---|---|---|
| Consumer debt (individual, personal/family/household) | ✅ Yes | FCRA furnisher duties + FDCPA pre-reporting contact + TX Ch. 392 |
| Corporate B2B debt | ❌ No | "Consumer" = individual (§ 1681a(c)); no consumer file for business entities |
| Sole proprietor debt | ✅ Yes | Individual = consumer. Report against individual's personal file |
| Personal guarantor | ✅ Yes | FTC Tatelbaum (2001): personal guarantor = consumer with permissible purpose |
| B2B + personal guarantee | ✅ Yes on guarantor, ❌ on entity | Report against guarantor individually; use business bureaus for the entity |
FCRA Furnisher Duties (§ 1681s-2)
§ 1681s-2(a) — Duty of Accuracy (Gov't enforcement only — NO private right of action)
- Don't furnish info you know or have reason to believe is inaccurate
- Upon consumer's written notice of error, stop furnishing until confirmation
- Notify CRAs of corrections
- Note dispute status during investigation
§ 1681s-2(b) — Duty to Investigate (Private right of action EXISTS)
Triggered when a CRA notifies DRE of a consumer dispute:
- Investigate within 30 days (45 if free annual report dispute)
- Review all relevant info from CRA
- Report results to CRA
- If inaccurate → correct with ALL nationwide CRAs
- Don't re-report inaccurate info
Liability: Actual damages, statutory ($100–$1,000), punitive, attorney's fees.
Pre-Reporting Steps (FDCPA + CFPB Debt Collection Rule)
Before reporting a consumer debt to a CRA, DRE must:
- Contact the consumer — in person, by phone, mail (~14 day wait), or electronic (~14 day wait)
- Send validation notice — amount, creditor, 30-day dispute right. Sending this satisfies the contact requirement
- Wait through the 30-day dispute window — if consumer disputes in writing within 30 days of validation notice, DRE cannot report until obtaining verification
Texas Finance Code Requirements
Scope: Consumer Debts Only
- § 392.001: "Consumer" = individual with consumer debt; "consumer debt" = primarily personal/family/household
- Not applicable to B2B debts (corporate debtors)
§ 392.101 — Surety Bond
- $10,000 bond on file with Texas SOS before engaging in debt collection
- Verify at: https://texas-sos.appianportalsgov.com/tpdc-public-search-portal
§ 392.202 — Dispute & Correction
When an individual disputes an item in DRE's files:
| Trigger | DRE's Obligation |
|---|---|
| Dispute received, DRE does NOT report to CRA | Cease collection until investigation done |
| Dispute received, DRE DOES report to CRA | Investigate + cease collection until investigation done |
Response deadline: Within 30 days → deny, admit, or request more time If more time needed: Provisionally correct the file + send corrected reports + cease collection If admitting inaccuracy: Correct within 5 business days + cease collection + notify prior recipients
Penalties
| Violation | Penalty |
|---|---|
| Ch. 392 violation | Misdemeanor ($100–$500); actual damages + $100 minimum per viol. + attorney's fees |
| Ch. 392 violation = DTPA violation | Treble damages available under TX Bus. & Com. Code § 17 |
| No surety bond | Criminal offense (§ 392.402) + bond claim from consumer |
Business Credit Bureaus (for B2B debts)
| Bureau | Key Product | How to Submit |
|---|---|---|
| Dun & Bradstreet | PAYDEX® Score (1–100) | Global Trade Exchange — free to join, requires D-U-N-S Number |
| Experian Business | Intelliscore Plus (1–100) | Data Furnisher Agreement |
| Equifax Business | Business Credit Risk Score | Data Furnisher Agreement |
Benefits: No FCRA/FDCPA restrictions, no 7-year limit, industry standard for B2B.
Key Risk Areas
- Pre-reporting contact failure — FDCPA violation (consumer debts only)
- Reporting before dispute resolved — FDCPA "cease collection" includes credit reporting (CFPB interpretation)
- Inaccurate data without investigation — FCRA § 1681s-2(b) private right of action
- Dispute investigation timeout — 30 days from CRA notice; failure to investigate = lawsuit
- Texas Ch. 392 mismatch — must follow both FCRA AND Texas parallel procedures. Texas has shorter timelines for correction (5 business days vs. 30 days under FCRA)
- Personal guarantee not documented — no written guarantee = no permissible purpose to report against individual
- B2B debt reported to consumer CRA — violates CRA contract + possible FCRA claim if individual's PII is attached without basis
Citations
- 15 U.S.C. § 1681a(c) — "consumer" defined as individual
- 15 U.S.C. § 1681a(d) — "consumer report" defined
- 15 U.S.C. § 1681s-2 — Furnisher responsibilities
- 15 U.S.C. § 1692g — FDCPA validation notice
- 12 CFR Part 1006 — CFPB Debt Collection Rule
- Tex. Fin. Code § 392.001 — Definitions
- Tex. Fin. Code § 392.101 — Surety bond
- Tex. Fin. Code § 392.202 — File correction
- Tex. Fin. Code § 392.403 — Civil remedies
- Tex. Fin. Code § 392.404 — DTPA remedy
- FTC Advisory Opinion to Tatelbaum (2001) — Personal guarantor = permissible purpose
Full report: /root/.hermes/references/dre-credit-reporting.md (25.7KB, 10 sections)