What is the required action by a credit union when incorrect information is reported to consumer reporting agencies?

When a credit union reports incorrect information to consumer reporting agencies, it has a responsibility to provide accurate information and to notify each consumer reporting agency (CRA) of the correction. This action aligns with the Fair Credit Reporting Act (FCRA), which requires that creditors ensure the accuracy and integrity of the information they provide to credit reporting agencies. So, when inaccuracies are identified, correcting the information promptly not only upholds the integrity of the credit reporting system but also protects the rights of consumers.

Taking corrective action by providing accurate information helps maintain trust in the financial system and ensures that consumers are not adversely affected by incorrect data. This process is also a proactive step in preventing potential legal implications that could arise from reporting erroneous information. Therefore, the correct response emphasizes the importance of thoroughness and accountability when dealing with consumer credit information.