What must a credit union do if they provide incorrect information to a CRA?

When a credit union provides incorrect information to a Credit Reporting Agency (CRA), the proper course of action is to ensure that the inaccurate data is corrected and communicated to the CRA as soon as possible. This responsibility falls under the Fair Credit Reporting Act (FCRA), which mandates that furnishers of information, such as credit unions, must take proactive steps to maintain the accuracy and integrity of the information they provide.

By providing the correct information to the CRA and informing them of the errors, the credit union helps safeguard the accuracy of consumers' credit reports. This action is vital not only for compliance with regulations but also for maintaining trust with members who depend on accurate credit reporting for their financial well-being.

In contrast, merely correcting information upon receiving a complaint, or only notifying affected members, does not fulfill the credit union's obligations under the law. Additionally, waiting for the CRA to reach out does not ensure that the inaccuracies will be promptly addressed, potentially harming consumers' credit histories. Taking immediate responsibility for accuracy reflects a commitment to ethical lending practices and consumer protection.