|Received:||5/22/2006 9:37:44 PM|
|Subject:||Procedures to Enhance the Accuracy and Integrity of Information Furnished to Consumer Reporting Agencies|
|Title:||Advance Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Parts 660 and 661|
|Attachment:||522110-00092.pdf Download Adobe Reader|
Comments:Regarding mergers and acquisitions of financial institutions: When such a merger or acquisition occurs, the purchasing institution assumes not only the active accounts, but the reporting responsibilities thereof. When the books include accounts that already have been charged off, charged to profit and loss, and sold to third party junk debt buyers, the purchasing institution has no claim in the matter. They have no financial interest because the account was sold prior to the merger/acquisition. What is their role in the reporting of a trade line on an account that was disposed of before they assumed the institution that previously held the account? Clarify that the purchaser of a bank does not assume accounts that have already been sold any more than they assume office supplies that have already been used or company vehicles that have already been auctioned off. Whatever proceeds stemming from the sale that might remain in the institutions funds are all they have a real interest in. They should be forbidden to report those accounts, particularly in the absence of original knowledge and/or supporting documentation. They cannot attest to the accuracy or the integrity of the reported trade line. Consumers who discover such a trade line on their reports are at a real disadvantage because no one accepts responsibility for substantiating the validity of the alleged indebtedness. The account that has been sold is at zero balance, but the purchasing bank routinely reports with a fresh charge off monthly making the account appear recently defaulted. The above portion restated and continued on the text file attachment.