CFPB Monthly Complaint Report Spotlights Errors on Credit Reports

CreditReport

Written By ESR News Blog Editor Thomas Ahearn

The Consumer Financial Protection Bureau (CFPB) has released the Monthly Complaint Report for May 2016 that shows consumers continue to complain about incorrect information on their credit reports as well as the difficulty they face in having these errors corrected. The CFPB has handled approximately 143,700 complaints about credit reports since they began accepting credit reporting complaints in October 2012.

“Credit reports are the foundation of consumers’ financial lives,” CFPB Director Richard Cordray stated in a press release about the report. “Consumers continue to express their frustration about inaccurate information on their credit reports and difficulty in getting these errors fixed. We will continue to work to ensure that credit report disputes are investigated, errors are fixed, and consumers are treated fairly.”

According to the CFPB – the first federal agency solely focused on consumer financial protection – consumer reporting companies track the credit history of consumers and other information. Errors in credit reports of consumers can affect their eligibility to take out a mortgage or whether they are eligible for a job. Some of the findings in the CFPB report for complaints about credit reports include:

  • Consumers complain about incorrect information on credit reports: Over three-quarters of complaints about credit reports – 77 percent – submitted to the CFPB by consumers are related to incorrect information appearing on their reports.
  • Consumers report difficulty disputing inaccuracies on their credit reports: Consumers complained about experiencing long delays trying to speak to representatives at the consumer reporting companies that created the credit reports or the companies that furnished the information for the credit reports.
  • High-volume complaint companies: Out of all the complaints about credit reports submitted to the CFPB between December 2015 and February 2016, 95 percent involved the three nationwide credit reporting companies – Equifax, Experian, and Transunion.
  • Specialty consumer reporting companies: In addition to complaints against the three nationwide credit reporting companies, consumers submitted more than 2,000 complaints regarding specialty consumer reporting companies that specialize in screening reports.

In June 2012, the CFPB launched its Consumer Complaint Database, the nation’s largest public collection of consumer financial complaints. Consumers who submit complaints have the option to share publicly their explanation of what happened to cause the complaint. For more individual-level complaint data and to read the experiences of consumers, visit www.consumerfinance.gov/complaintdatabase/.

As of May 1, 2016, the CFPB has handled 882,800 complaints nationally. To submit a complaint to the CFPB, consumers can: Call the toll-free phone number at 1-855-411-CFPB (2372) or TTY/TDD phone number at 1-855-729-CFPB (2372); Fax the CFPB at 1-855-237-2392; Mail a letter to: Consumer Financial Protection Bureau, P.O. Box 4503, Iowa City, Iowa 52244; or go online at www.consumerfinance.gov/complaint/.

More Information about Credit Reports from ESR

Employment Screening Resources® (ESR) is a global background check firm accredited by the National Association of Professional Background Screeners (NAPBS®) that undergoes yearly SOC 2® audits to protect consumer data. ESR offers employers information about states with laws regulating credit reports for employment as well as several blogs about credit reports. For more information about ESR, visit www.esrcheck.com.

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