ALEXANDRIA, Va. – According to CUNA and NAFCU, credit reporting agencies are better equipped to handle the re-investigation of any credit reporting alleged inaccuracies than the financial institutions.

In comment letters to NCUA on its joint advance notice of proposed rulemaking with the other federal financial regulators, CUNA and NAFCU both stated that information provided by furnishers is generally accurate and that the credit reporting agencies may be better able to handle disputed records as well as resolving the matter more quickly. Additionally, allowing consumers to report errors to the furnishers will increase the time and costs of these disputes for financial institutions.

Many of the problems occur at the consumer reporting agency anyway, CUNA Senior Assistant General Counsel Jeffrey Bloch wrote. "For this reason, it may be best for the agencies to discuss these problems directly with the three nationwide consumer reporting agencies," he said. "This will not only provide the agencies with information about the extent of these problems and to confirm that these can be addressed by the consumer reporting agencies, but will also provide an opportunity to discuss with them the extent to which financial institutions and other furnishers can make changes to their reporting processes in an effort to help the consumer reporting agencies address these problems." Additionally, NAFCU President and CEO Fred Becker wrote, "NAFCU member credit unions have expressed concern that allowing consumers the right to dispute information directly with the furnisher may increase both the volume of requests, and the volume of frivolous disputes. Anecdotal evidence suggests that many consumers have the mistaken belief that they can `clean up' a poor credit history by simply disputing, wholesale, any and all negative information contained in the consumer's credit report."