On February 28, 2017, the Consumer Financial Protection Bureau (“CFPB”) released its monthly consumer complaint report. The CFPB is a US government agency responsible for consumer protection in the financial sector.
According to the report, 76% of credit-related complaints concern the accuracy of the information in consumers’ credit reports. The CFPB emphasizes banks and creditors' (known as “furnishers” under the law) obligation to implement policies and procedures for proper record keeping to ensure accurate credit reporting. The report further discusses the importance of a thorough dispute resolution process to allow consumers to have efficient review and correction of legitimate disputes.
Regarding credit bureaus and other reporting agencies, the report highlights the importance of their review of data from the furnishers, including better quality control programs to ensure the accuracy of credit reporting. The CFPB expects that the bureaus will adhere to the thirty-day timeline for investigating and correcting errors as provided under the Fair Credit Reporting Act (the federal law governing consumer credit reports, among other things).
Despite the CFPB’s continued oversight, furnishers and credit bureaus continue to report inaccurate consumer information at an alarming rate. According to a 2013 FTC study, one in five consumers has an error on at least one of their three credit reports (Equifax, Experian, and Trans Union). To prevent future inaccuracies, consumers should pull and review their credit reports at least once every 12 months through www.annualcreditreport.com.
A link to the CFPB’s report is included here.