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The Consumer Financial Protection Bureau (CFPB) released a report on Tuesday detailing complaints about consumer credit reporting agencies and their efforts to address these concerns.
The CFPB is required by the Fair Credit Reporting Act to produce an annual report of complaints made by consumers against the National Consumer Reporting Agencies (NCRA) – Equifax, Experian and TransUnion. The latest edition of the report was based on the 488,000 consumer complaints the CFPB sent to NCRAs between October 2021 and September 2022.
“TransUnion, Equifax and Experian consistently top the list of consumer complaints,” CFPB Director Rohit Chopra said. “We will be exploring new rules to make sure they follow the law rather than cutting corners to fuel their profit model.”
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The CFPB is required by the Fair Credit Reporting Act to produce an annual report on complaints made by consumers against the national consumer reporting agencies – Equifax, Experian and TransUnion. (Smith Collection/Gado/Getty Images)
The CFPB found that following changes made by the NCRAs in response to last year’s report, companies provided consumers with more substantive responses that were tailored to complaints and included explanations. Equifax, Experian and TransUnion are also signaling the closure of more complaints by offering relief to consumers in the form of an updated credit report.
The most common complaint sent to NCRA involved incorrect information on a consumer’s credit report. Inaccurate reports that hurt a consumer’s credit score can increase their borrowing costs and make it more difficult to buy a home, start a business, or perform certain jobs that require verification of credit. credit.
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The most common complaint sent to NCRA involved incorrect information on a consumer’s credit report. (iStock/iStock)
The second most frequently referred issue by the CFPB to NCRAs involved issues with an investigation conducted by a reporting company. According to the CFPB report, 93% of consumers said they had tried to resolve the problem with their credit report by contacting an NCRA.
The third most common complaint sent to NCRA was about the misuse of a consumer’s credit report – although this is a bigger issue for other smaller credit bureaus (CRAs) which are also included in the CFPB report.
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The second most frequently referred issue by the CFPB to NCRAs involved issues with an investigation conducted by a reporting company. (Stock)
The Consumer Data Industry Association provided the following statement regarding the CFPB report to Fox Business on behalf of the national credit bureaus: “The Consumer Data Industry Association (CDIA) is reviewing the CFPB report in detail. Consumers, credit reporting agencies, banks and regulators continue to share a common goal when it comes to credit reports: they should be as accurate and reliable as possible.National Credit Reporting Agencies (NCRAs) play an important role in the financial lives of consumers and we take this responsibility seriously.”
It is unclear whether the CFPB will propose new regulations applicable to NCRAs or overhaul the credit reporting system more broadly. The agency declined to comment further beyond Chopra’s statement in the press release accompanying the report.
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However, the CFPB said the agency “expects the three national consumer information companies to continue to improve the way they serve consumers.” It is recommended that Equifax, Experian and TransUnion take the following actions:
- Consider whether implementing automated processes will require consumers to do more work to exercise their legal rights.
- Recognize that consumers may begin to rely more on communication technologies to write complaints that ease their writing burden, but that single complaints might be inappropriately grouped with similar-sounding complaints.
- Enable increased consumer engagement on the data side of consumer reports to potentially reduce inaccuracies that arise from poor consumer visibility into their own data.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| TRU | TRANSUNION | 61.84 | +2.83 | +4.80% |
| EFX | Equifax Inc. | 204.66 | +6.25 | +3.15% |
| EXPGY | EXPERIAN PLC | 34.84 | +0.81 | +2.38% |
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