Credit bureaus must handle consumer disputes better
The Consumer Financial Protection Bureau (CFPB) recently issued a bulletin, warning credit bureaus and other organizations bound by the Fair Credit Reporting Act that it was closely monitoring their compliance with that law. In particular, it said it would be prioritizing its oversight examinations in line with complaints it received from individual consumers.
Credit report errors damaging
IndexCreditCards.com has reported, most recently in August, on damage done to consumers who’ve had problems getting errors on their credit reports corrected. Someone with an inaccurate report could find themselves paying considerably higher mortgage, loan and credit card rates, and might even be turned down for credit completely. Some say they have encountered problems renting apartments and getting jobs.
The CFPB’s warning is intended to force lenders who provide credit bureaus with information (“furnishers,” in regulator jargon) to have adequate systems in place to deal with consumer-initiated complaints. Furnishers have no financial incentive to invest in such systems, and sometimes fail to efficiently deal with issues. Bureaus generally need furnishers to correct errors before they can change an individual’s report.
If you find mistakes on your credit report, and have problems getting them sorted out, you can complain to the CFPB online.
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