CFPB Finds Complaints about Credit Reports Rising Sharply

 CreditReport

Written By ESR News Blog Editor Thomas Ahearn

The Consumer Financial Protection Bureau (CFPB) has released its Monthly Complaint Report that found complaints about credit reports sharply increased compared to the prior month and the prior year. The CFPB Monthly Complaint Report can be found at: http://files.consumerfinance.gov/f/201508_cfpb_monthly-complaint-report-vol-2.pdf.

According to the report, the CFPB saw a 56 percent increase in complaints about credit reports submitted by consumers between June 2015 (4,289 complaints) and July 2015 (6,969 complaints). In analyzing the period of May 2015 through July 2015, complaints about credit reports increased by 45 percent compared to the prior year.

The report also found that more than three out of four complaints submitted to the CFPB about credit reports – 77 percent – involved incorrect information on credit reports. Consumers frequently complained of debts already paid or debts not yet due showing up on their credit reports that negatively affected their credit scores.

Consumers also consistently reported issues related to accessing their credit reports as a result of rigorous online identity authentication questions. If unable to access their credit reports over the Internet, consumers had to send copies of sensitive documents through the mail, which they felt was time-consuming and potentially unsecure.

“Whether a consumer is trying to get a mortgage, apply for a student loan, or buy a car, credit reports are fundamentally important in allowing people to access their financial goals,” CFPB Director Richard Cordray stated in a news release. Cordray said the CFPB works to ensure credit reports are fair, accurate, and readily available to consumers.

Credit reports can determine everything from consumer eligibility for credit to the rates consumers pay for credit. Because of the significance of credit reports, the CFPB has published tips and guidance for how consumers can get and keep a good credit score at: http://files.consumerfinance.gov/f/2011/07/CFPB_20110719_CreditScoresFlyer.pdf.

Since 2012, the CFPB has supervised the nation’s largest credit reporting agencies which maintain files on more than 200 million consumers. The CFPB has handled approximately 105,000 credit reporting complaints since it began accepting them in October 2012. For more information, visit http://www.consumerfinance.gov/.

More Information about Credit Reports from ESR

Employment Screening Resources® (ESR) – ‘The Background Check Authority®’– offers employers information about states with laws regulating credit reports for employment, blogs about credit reports, and a whitepaper about using credit reports for background checks. For more information about ESR, visit http://www.esrcheck.com.

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