Written By Digital Content Editor Thomas Ahearn

The Consumer Financial Protection Bureau (CFPB) – a U.S. Government agency that enforces the Fair Credit Reporting Act (FCRA) – has issued a Civil Investigative Demand (CID) to a nationwide Credit Reporting Agency (CRA) to investigate alleged data accuracy issues and ensure FCRA compliance, Bloomberg.com reported.

The nationwide CRA said that the CFPB – which was created by the “Dodd-Frank Act of 2010” – “is investigating how the company handles disputes and data accuracy within a unit that tracks the careers and earnings of workers at millions of businesses across the country,” according to the report from Bloomberg.com.

Under Section 1681e(b) of the FCRA which covers the accuracy of consumer reports, all CRAs are required to “follow reasonable procedures to assure maximum possible accuracy of the information” contained in a consumer’s credit report. Failure to do so is a violation of the FCRA which is enforced by the CFPB.

Enacted by the U.S. Congress in 1970, the FCRA is federal legislation that promotes the accuracy, fairness, and privacy of consumer information contained in the files of CRAs, and protects consumers from the willful and/or negligent inclusion of inaccurate information in their consumer reports. A full copy is available here.

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