2022Credit Reports

Written By Digital Content Editor Thomas Ahearn

Three nationwide consumer reporting agencies (NCRAs) – Equifax, Experian, and TransUnion – may have been less responsive to consumer disputes of credit reports during the COVID-19 pandemic, according to a letter from the House Select Subcommittee on the Coronavirus Crisis to the Consumer Financial Protection Bureau (CFPB).

Dated October 13, 2022, the letter from Chairman James E. Clyburn to CFPB Director Rohit Chopra stated that “information obtained by the Select Subcommittee indicates that there are longstanding problems with the practices employed by the NCRAs in responding to consumers who challenge credit reporting errors.”

The letter also stated the information raises concerns about whether the NCRAs are fulfilling all of their obligations to consumers under the Fair Credit Reporting Act (FCRA) – a federal law enforced by the CFPB that regulates credit reporting – and requested that the “CFPB use its supervisory authority to further investigate.”

The letter indicated the majority of credit report disputes did not result in the correction of reported errors. During the COVID crisis from 2019 through 2021, Equifax corrected 43 to 47 percent of disputed items, Experian corrected 52 percent of disputed items, and TransUnion corrected 49 to 53 percent of disputed items.

The FCRA has an accuracy requirement for NCRAs regarding consumer information. According to the FCRA: “Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.”

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