Credit Protection Association dealt FCRA penalty
The Federal Trade Commission has announced that Credit Protection Association, LP (CPA). a Texas-based debt collection agency, will pay $72,000 in civil penalties and be required to adopt new procedures to settle Commission charges that it violated the requirements of the Fair Credit Reporting Act (FCRA). A complaint filed by the FTC alleged that CPA failed to follow the requirements of the FCRA's Furnisher Rule by not having adequate policies and procedures in place to handle consumer disputes regarding information the company provided to credit reporting agencies. The FTC also alleged that CPA did not have a policy requiring notice to consumers of the outcomes of investigations about disputed information and that in numerous instances consumers were not informed whether information they disputed had been corrected.