Check whether a default may be furnished and how long a collection item may be reported
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- State the date the delinquency began, whether the account was placed for collection or charged to profit and loss, and any fact the furnisher knows that would give a reasonable person substantial doubts about accuracy. Do not treat a consumer allegation, standing alone, as that knowledge.
- What the lawyer must review
- 15 U.S.C. § 1681s-2 says a person shall not furnish information about a consumer to a consumer reporting agency if the person knows or has reasonable cause to believe the information is inaccurate. Reasonable cause means specific knowledge, other than solely allegations by the consumer, that would cause a reasonable person to have substantial doubts about the accuracy. 15 U.S.C. § 1681c then limits how long a collection or charge-off may appear: accounts placed for collection or charged to profit and loss are excluded once they antedate the report by more than seven years, and the running rule in subsection (c) starts that period, for the paragraphs it names, 180 days after the delinquency that immediately preceded the collection or charge-off. There is no federal list of Australian-style preconditions such as a set number of days overdue plus a prescribed notice before a default may be listed.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.