Tricolor Auto Acceptance (Tricolor), a Texas based auto dealer has agreed to settle with the Federal Trade Commission (FTC) for violations of the Fair Credit Reporting Act (FCRA). Tricolor will pay the FTC $82,777 in penalties, which has been approved by a federal judge in the Northern District of Texas.
The FTC alleged that Tricolor violated the Furnisher Rule, which requires companies that provide information to credit reporting agencies to establish and implement written policies and procedures that ensure the accuracy of the consumer information provided to the agencies. Further, the FTC alleged that Tricolor failed to properly investigate consumers’ disputes about their credit information. In doing so, Tricolor failed to ensure the accuracy of consumer credit reports.
In its press release announcing the settlement, the FTC stated “An inaccurate credit report can have a huge impact on consumers’ ability to make purchases, be hired and more…This case makes it clear that businesses must take the proper steps to make sure the information they provide to credit bureaus is accurate.”
Companies who furnish consumer credit information to credit reporting agencies would benefit from reviewing existing, and implementing new written policies and procedures governing the process of ensuring the accuracy of the information prior to sending it to credit reporting agencies, as well as other requirements set forth in the Furnisher Rule.