A compliance condition code is the field a furnisher uses to tell the credit bureaus whether you have disputed an account and where that dispute stands. It is what makes a note like "disputed by consumer" appear on your credit report.
Also called: CCC, dispute flag, dispute code, disputed by consumer notation, account in dispute
What it means
When you dispute an account, the company that reports it (the furnisher) has a way to tell the bureaus about it: the compliance condition code. In Seamans v. Temple University, the Third Circuit described the “compliance condition” as the coded field “which indicates whether the reported information is disputed by the consumer.”
In Wood v. Credit One Bank, a federal court in Virginia considered three of these codes. As a published summary of that decision describes them:
- XB: the consumer disputes the account information under the Fair Credit Reporting Act.
- XC: the investigation of the dispute is complete, and the consumer disagrees with the result.
- XH: the account was previously in dispute and is now resolved.
The same summary notes that a furnisher in that case could choose among ten compliance condition codes.
Where it comes from
The Fair Credit Reporting Act says that once you dispute information with a furnisher, it may not keep reporting that information without notice that you dispute it (15 U.S.C. § 1681s-2(a)(3)). When a bureau receives that notice, it must show the dispute on each report that includes the item (§ 1681c(f)). In practice, the compliance condition code is how that notice travels.
Common errors
- The furnisher never sends a dispute code at all. In Seamans, a loan servicer’s employee testified that until November 2011 it did not report accounts as disputed to the bureaus.
- The furnisher marks the dispute “resolved” while you still disagree.
- A dispute flag stays on after you ask for it to come off, or is removed while the dispute is still open.
How to dispute it
Dispute in writing with the bureaus and, when it makes sense, directly with the furnisher. Say plainly that you still dispute the account and why. Keep copies. If the result is wrong, say that you disagree with it, and check your next report to see how the account is flagged.
When it can be an FCRA violation
Courts have held that leaving off a real dispute can make a report misleading. The Fourth Circuit in Saunders v. Branch Banking & Trust upheld a jury verdict against a furnisher that reported a debt without noting the consumer’s dispute. In Wood, the court found that reporting a dispute as “resolved” while the consumer kept disputing created a materially misleading impression.
If your report still doesn’t show your dispute correctly, request a free case review; there is no fee unless we win.
Related
- XB code (account disputed)
- XC code (investigation complete, consumer disagrees)
- XH code (previously disputed, now resolved)
- Metro 2 format
- Statement of dispute (consumer statement)
- Reinvestigation
- ACDV (automated consumer dispute verification)
- How to Dispute Credit Report Errors With Equifax, Experian and TransUnion
- How to Write a Credit Report Dispute Letter That Gets Investigated
- Dispute letter builder
Sources
- Seamans v. Temple University, No. 12-4298 (3d Cir. Feb. 21, 2014)
- Saunders v. Branch Banking & Trust Co. of Va., No. 07-1108 (4th Cir. May 14, 2008)
- Wood v. Credit One Bank, No. 3:15cv594 (E.D. Va. Sept. 21, 2017)
- Consumer Financial Services Law Monitor, summary of Wood v. Credit One Bank (Oct. 2017)
- 15 U.S.C. § 1681s-2 (duties of furnishers), Cornell LII
- 15 U.S.C. § 1681c(f) (disputed information), Cornell LII
Updated November 2026. This glossary is written by FCRA Attorneys from public sources. It is general information, not legal advice, and is not affiliated with any credit bureau or industry association.