CFPB

Credit Reporting Complaints from the Military Community

Credit Reporting Complaints from the Military Community

Yesterday, the Consumer Financial Protection Bureau (CFPB) released its fourth annual report detailing the complaints received from military servicemembers, veterans and their families. Since the CFPB first started taking complaints in July of 2011, the complaint volume has steadily risen. In 2015, the CFPB received thousands of credit reporting complaints from the military community. The reporting of inaccurate credit information was by far the most complained about followed by complaints about the credit reporting company's investigation process.

CFPB Takes Action Against General Information Services and e-Background-checks.com for various violations of the FCRA

The CFPB has ordered two of the largest employment background screening providers (General Information Services and its affiliate, e-Background-checks.com, Inc.) to pay $10.5 million in relief to consumers and pay $2.5 million in civil penalties for violations of the Fair Credit Reporting Act (FCRA) resulting from the reporting of “serious inaccuracies.”

New CFPB Bulletin Issues Strong Warning to Furnishers of Consumer Credit Information

Furnishers Are Required to Review Documentation from Credit Reporting Agencies

The Consumer Financial Protection Bureau (the “CFPB”) has issued a Bulletin, dated September 4, 2013, to companies that furnish information to consumer reporting agencies (“CRAs”) regarding furnisher obligations under the Fair Credit Reporting Act (the “FCRA”). The Bulletin is intended to deal specifically with the FCRA requirement that furnishers are required to “review all relevant information” when investigating a consumer dispute. The CFPB Bulletin provides a warning to furnishers that the CFPB maintains supervisory and enforcement authority which it will use to address furnisher violations.

The Consumer Financial Protection Bureau’s Reports on Received Complaints

Federal Agency to Oversee Credit Reporting Agencies

In July of 2011, the Consumer Financial Protection Bureau (CFPB) became the first federal agency to oversee credit reporting agencies such as Equifax, Experian, and Trans Union. The CFPB receives complaints directly from consumers relating to credit reporting, mortgages, bank accounts and services, private student loans, consumer loans, and money transfers. In July 2013, the CFPB released a report which provides a snapshot of the complaint process and a analysis of the complaints they received. The report states that between the July 21, 2011 through June 20, 2013; 14,200 credit reporting complaints where received by consumers in the marketplace.

CFPB Releases Results of Study of Differences Between Consumer and Creditor Purchased Credit Scores

What should you do if you learn that your credit report has errors? You can either contact us about how to proceed or send a dispute to the consumer reporting agency (CRA) on your own. There are several ways to initiate the dispute process with the CRAs, including using the dispute form which you may have received when you ordered your credit report; using the CRAs online dispute form; sending a dispute letter by mail (certified mail is recommended but not required); or by telephone. Whichever method you choose, you should remember to keep an accurate record of your dispute, including a copy of your dispute form or letter. If you use the online dispute form, you should take a screen shot of your dispute before sending it. 

Consumer Reporting Agencies Subject to Increased Federal Supervision

Earlier this week, the Director of the Consumer Financial Protection Bureau (“CFPB”), Richard Cordray, spoke at a field hearing were he discussed the CFPB’s new authority to supervise consumer reporting agencies. Starting this September, the CFPB will have the authority to supervise 94% of the credit reporting industry. Until now, consumer reporting agencies (commonly referred to as “credit reporting agencies” or “credit bureaus”), the largest of which are Equifax (including credit files owned by CSC Credit Services), Experian, and Trans Union, have never been subject to like supervision. From conducting on-site examinations to seeking better comprehension of policies and procedures, the CFPB’s supervisory authority will seek to ensure that the consumer financial laws are being followed.

The creation of the consumer bureau, the CFPB, was done so in response to the recent financial crisis experienced by the United States.