FTC Clarifies Credit Reporting Compliance Requirements

Anthony DiResta and Kwamina Thomas Williford are Partners in Holland & Knight's Washington D.C. office
Brian Goodrich is an Associate in Holland & Knight's Washington D.C. office

In a statement issued on Monday, May 9, 2016, Jessica Rich, Director of the Federal Trade Commission's (FTC) Bureau of Consumer Protection, warned the industry that debt collection agencies that fail to live up to their obligations under the Fair Credit Reporting Act (FCRA) "can expect to hear from the FTC." Director Rich's comments came as part of an announcement by the FTC that it had filed a complaint and proposed order against a Texas-based debt collection agency for having deficient policies and procedures related to borrower credit reporting. Through its proposed order, the FTC has clarified its expectations for what credit reporting policies and procedures debt collection agencies should have in order to avoid or withstand regulatory scrutiny.