2020 New York Laws
GBS - General Business
Article 25 - Fair Credit Reporting Act
380-F - Procedure for Resolving Disputes.

§  380-f. Procedure for resolving disputes. (a) If a consumer disputes
any item of information contained in  his  file,  and  such  dispute  is
directly  conveyed to the consumer reporting agency by the consumer, the
consumer reporting agency shall promptly re-investigate and  record  the
current  status of such information, unless it has reasonable grounds to
believe that the dispute by the consumer  is  frivolous,  and  it  shall
promptly  notify  the  consumer  of the result of its investigation, its
decision on the status of the information and  his  rights  pursuant  to
this  section. The presence of contradictory information in a consumer's
file shall not, in and of  itself,  constitute  reasonable  grounds  for
believing the dispute is frivolous.
  (b)  If, after conducting the re-investigation required by subdivision
(a) of this section, the consumer reporting agency finds that an item is
in error or that it can no longer be verified, it shall:
  (1) promptly expunge the item and otherwise correct the file,
  (2) refrain from reporting the item in subsequent consumer reports,
  (3) clearly and conspicuously disclose to the consumer his  rights  to
make  a  request  for  notification  and  upon  request of the consumer,
promptly notify any person designated by the consumer who  has  received
information  regarding  the  item during the previous year that an error
existed, and shall furnish such person with the  corrected  information,
and
  (4)  where  applicable  forward  a  copy  of  the consumer's statement
pursuant to subdivision (c) of this section.
  (c) If, after conducting a re-investigation pursuant to this  section,
the  consumer  reporting  agency  is  unable  to  resolve  any remaining
differences between the statements made by its sources and the consumer,
it shall:
  (1) promptly indicate in the file that the item is disputed,
  (2) permit the consumer to file a statement concerning the  nature  of
the  dispute,  which  statement may be limited by the agency to not more
than one hundred  words  if  such  agency  provides  the  consumer  with
assistance in writing a clear summary of the dispute,
  (3)  include the consumer's statement of the dispute in all subsequent
credit reports containing the information in question, and
  (4) clearly note in all subsequent consumer reports that the  item  is
disputed by the consumer.
  (d)  Notwithstanding  any other provision of this section, if any item
disputed and reinvestigated is found to be in error or can no longer  be
verified,  upon completion of the reinvestigation of all items disputed,
the agency shall promptly mail the consumer a corrected written copy  of
the  file, reflecting any changes, with an explanation of any code used,
at no charge to the consumer.