Credit Report Inaccuracies Continue to Pose Problems, Says CFPB Report
A recent report from the Consumer Financial Protection Bureau highlights some of the ongoing problems occurring in the area of consumer credit reporting. The CFPB is the federal agency charged with oversight of the credit reporting process. The three major credit reporting agencies are Equifax, Experian, and Trans Union.
As the report explains, credit reporting plays a “critical role” in consumers’ financial lives, a role that most consumers do not recognize because it is usually “not very visible to them.” Credit reports determine one’s eligibility for credit cards, car loans, and home mortgage loans. Credit reports also affect how much a consumer is going to pay for a loan.
Credit reporting agencies still have a long way to go, says the report. They often fail to comply with proper dispute handling procedures. When a consumer submits a credit dispute, the credit reporting agency is required to respond with appropriate information. The agencies often fail to do this, though, and do not conduct a proper reinvestigation. This leads to further inaccuracies in consumers’ credit reports. Furthermore, the staff at the credit reporting agencies are often untrained and do not comply with policies. This also often leads to many inaccurate notations in credit reports.
Overall, the report highlights both the progress made by the CFPB and the challenges ahead of it.
Consumers should obtain a copy of their credit reports every year by getting them from www.AnnualCreditReport.com or calling Annual Credit Report at 877-322-8228.
The official press release is here: CFPB Oversight Uncovers And Corrects Credit Reporting Problems
The CFPB report is here: Supervisory Highlights Consumer Reporting Special Edition
If there is inaccurate information on your credit report, Culik Law may be able to help you submit a dispute, and obtain redress under the Fair Credit Reporting Act if the inaccuracy is not removed. Contact us to see if we can help.