Kristy Welsh

MBNA America Bank NA
POB 17054
Wilmington, DE 19884
Date: Jan 3, 2005

Re: Acct #XXX-XXX-XXXXXXX

To Whom It May Concern:

I recently pulled my credit report from Experian and TransUnion and to my amazement, saw that you recently have decided to report me 30 days late on this account in Nov 2003. I have previous credit reports from both agencies pulled in Oct of 2004, and neither one of these reports show me late in Nov 2003. Not only was I never late on this account, but according to the FCRA, as amended by the FACTA act, you are required to notify me of the insertion of negative listings. I never received such a notice.
§ FCRA 623 (a) (7) Negative Information

(A) Notice to Consumer Required

(i) In general. If any financial institution that extends credit and regularly and in the ordinary course of business furnishes information to a consumer reporting agency described in section 603(p) furnishes negative information to such an agency regarding credit extended to a customer, the financial institution shall provide a notice of such furnishing of negative information, in writing, to the customer.

(ii) Notice effective for subsequent submissions. After providing such notice, the financial institution may submit additional negative information to a consumer reporting agency described in section 603(p) with respect to the same transaction, extension of credit, account, or customer without providing additional notice to the customer.

(B) Time of Notice

(i) In general. The notice required under subparagraph (A) shall be provided to the customer prior to, or no later than 30 days after, furnishing the negative information to a consumer reporting agency described in section 603(p).

(ii) Coordination with new account disclosures. If the notice is provided to the customer prior to furnishing the negative information to a consumer reporting agency, the notice may not be included in the initial disclosures provided under section 127(a) of the Truth in Lending Act.

Under the new FACTA laws, you are required to furnish me with documentation regarding information you are reporting to the credit bureaus.
§ FCRA 623 (a) ( 8 ) Ability of Consumer to Dispute Information Directly with Furnisher

(A) In general. The Federal banking agencies, the National Credit Union Administration, and the Commission shall jointly prescribe regulations that shall identify the circumstances under which a furnisher shall be required to reinvestigate a dispute concerning the accuracy of information contained in a consumer report on the consumer, based on a direct request of a consumer.

(B) Considerations. In prescribing regulations under subparagraph (A), the agencies shall weigh–

(i) the benefits to consumers with the costs on furnishers and the credit reporting system;

(ii) the impact on the overall accuracy and integrity of consumer reports of any such requirements;

(iii) whether direct contact by the consumer with the furnisher would likely result in the most expeditious resolution of any such dispute; and

(iv) the potential impact on the credit reporting process if credit repair organizations, as defined in section 403(3), including entities that would be a credit repair organization, but for section 403(3)(B)(i), are able to circumvent the prohibition in subparagraph (G).

(C) Applicability. Subparagraphs (D) through (G) shall apply in any circumstance identified under the regulations promulgated under subparagraph (A).

(D) Submitting a notice of dispute- A consumer who seeks to dispute the accuracy of information shall provide a dispute notice directly to such person at the address specified by the person for such notices that–

(i) identifies the specific information that is being disputed;

(ii) explains the basis for the dispute; and

(iii) includes all supporting documentation required by the furnisher to substantiate the basis of the dispute.

(E) Duty of person after receiving notice of dispute. After receiving a notice of dispute from a consumer pursuant to subparagraph (D), the person that provided the information in dispute to a consumer reporting agency shall–

(i) conduct an investigation with respect to the disputed information;

(ii) review all relevant information provided by the consumer with the notice;

(iii) complete such person’s investigation of the dispute and report the results of the investigation to the consumer before the expiration of the period under section 611(a)(1) within which a consumer reporting agency would be required to complete its action if the consumer had elected to dispute the information under that section; and

(iv) if the investigation finds that the information reported was inaccurate, promptly notify each consumer reporting agency to which the person furnished the inaccurate information of that determination and provide to the agency any correction to that information that is necessary to make the information provided by the person accurate.

(F) Frivolous or Irrelevant Dispute

(i) In general. This paragraph shall not apply if the person receiving a notice of a dispute from a consumer reasonably determines that the dispute is frivolous or irrelevant, including–

(I) by reason of the failure of a consumer to provide sufficient information to investigate the disputed information; or

(II) the submission by a consumer of a dispute that is substantially the same as a dispute previously submitted by or for the consumer, either directly to the person or through a consumer reporting agency under subsection (b), with respect to which the person has already performed the person’s duties under this paragraph or subsection (b), as applicable.

(ii) Notice of determination. Upon making any determination under clause (i) that a dispute is frivolous or irrelevant, the person shall notify the consumer of such determination not later than 5 business days after making such determination, by mail or, if authorized by the consumer for that purpose, by any other means available to the person.

(iii) Contents of notice. A notice under clause (ii) shall include–

(I) the reasons for the determination under clause (i); and

(II) identification of any information required to investigate the disputed information, which may consist of a standardized form describing the general nature of such information.

I contacted your company and talked to a supervisor (David H – direct line 918 841 0712), who was unable to find any evidence of my late payment on file. He promised to send me a payment history of my account. I never received such documentation. The results of my Experian dispute and my TransUnion dispute have just come in, and both say “verified”. How is this possible? You weren’t able to provide me with anything. Reporting inaccurate information is also a violation of the FCRA.

In addition, I have had the interest rate on my other credit cards raised due to your error which has caused me additional interest costs, plus I have spent lost work hours trying to straighten this out with the credit bureaus. The FCRA allows for damages of $1000 per violation, and I consider this three violations, two for never notifying me and one for reporting inaccurately.

Please correct this listing to “paid as agreed – never late”, and remove the 30-day late for Nov 2003, or I will be forced to seek legal action.

Sincerely,
Kristy Welsh

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