I'm arguing with our Loan Ops Department about reporting guarantors to credit bureaus. FCRA states accuracy includes reporting ensuring the account reflects the terms and liability for the account. IMO, a guarantor shouldn't be reported because they aren't liable until we demand payment. Can anyone offer up any additional citations other than 1002.41 to support my standing?

From the FCRA Appendix:(b) Objectives. A furnisher's policies and procedures should be reasonably designed to promote the following objectives:

(1) To furnish information about accounts or other relationships with a consumer that is accurate, such that the furnished information:

(i) Identifies the appropriate consumer;

(ii) Reflects the terms of and liability for those accounts or other relationships; and

(iii) Reflects the consumer's performance and other conduct with respect to the account or other relationship;

We do report guarantors, and I believe the CRAs have specific codes for a guarantor liability status.

I know that our lenders would want to know if a loan the applicant was a guarantor on was in serious delinquency status.

You can report if your systems support it. Remember, it is all or none. Also, if you request both limited and full guarantees, you are going to have to be able to report the actual liability.