Written By ESR News Blog Editor Thomas Ahearn
On June 16, 2020, the Consumer Financial Protection Bureau (CFPB) – which helps businesses comply with federal consumer financial law – issued Consumer Reporting Frequently Asked Questions (FAQs) related to the “Coronavirus Aid, Relief, and Economic Security Act (CARES Act)” and the Coronavirus (COVID-19) pandemic.
On April 1, 2020, the CFPB issued a statement informing lenders they must comply with the credit reporting requirements of the CARES Act, which was passed by Congress to minimize the impact of COVID-19 by placing requirements on companies furnishing information about consumers to consumer reporting agencies (CRAs).
The FAQs address the credit reporting requirements of the CARES Act, including considerations for furnishers when reporting consumers as current as required by the CARES Act, and also clarify that reporting a consumer is affected by a disaster is not a substitute for complying with the CARES Act credit reporting requirements.
The FAQs also address the CFPB’s guidance that provides temporary and targeted flexibility in the event CRAs or the furnisher experience challenges as a result of the pandemic in investigating consumer disputes. All CRAs and furnishers remain responsible for conducting reasonable investigations of consumer disputes in a timely fashion.
The CFPB offers additional resources to help the industry comply with credit reporting requirements, and is also providing consumers with up-to-date information and resources to protect and manage their finances during this difficult time. Additionally, the CFPB offers financial education tools and information for consumers.
The CFPB is working to continuously update information for consumers during this rapidly evolving situation and will publish all COVID-19-related information and blogs to its resource page. To find more information regarding COVID-19 from CFPB, visit the COVID-19 resource page at https://www.consumerfinance.gov/coronavirus/.
Coronavirus (COVID-19) is a respiratory illness that can spread from person to person. As of June 23, 2020, there are approximately 9.1 million global cases with 472,000 global deaths, while the United States leads the world with approximately 2.3 million cases and 120,000 deaths, according to research from Johns Hopkins University.
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