The most common issues identified by consumers are problems with incorrect information on their credit reports.
The Consumer Financial Protection Bureau (CFPB) reports that 76 percent of consumers who filed complaints about credit reporting stated that they had incorrect information on their credit reports. The CFPB has handled approximately 185,700 credit reporting complaints since July 21, 2011, making credit reporting the third most-complained-about product. This is important to you because it means that there is a very good change your credit reports have inaccurate information on them. Inaccurate information can lead to increased interest rates, prevent you from getting a mortgage or buying a car, landing a job, or getting a security clearance.
Mixed credit reports are more common than you may realize. Your credit file may contain information belonging to someone else, and unless you look at your credit report, you may never know. Watch this short clip to learn more ...
Equifax is being sued for violated in Fair Credit Reporting Act
Earlier this year, Cento Law filed a complaint against Equifax for mixing the credit report of the plaintiff with information belonging to the plaintiff's father.
The plaintiff was first alerted to the mixed credit file when he was eighteen years old. At the time he was living at his parents and working. The alert came when he received a letter that was attached to his paycheck. The letter was from a county auditors office and its purpose was to inform the plaintiff that his wages were going to be garnished due to unpaid property taxes. Eventually the plaintiff learned that the property taxes in question were actually taxes levied against a man that he shared the same name with, his father.
As time went by, plaintiff was able to obtain a loan for a vehicle. He paid his loan on time with the hope of creating good credit. Two years later...
An update on the National Consumer Assistance Plan
On March 8, 2015, Equifax, Experian and TransUnion (CRAs) entered into a settlement agreement with the NY Attorney General along with 31 additional AGs from other states. Upon entering the agreement, the CRAs announced that they would address a number of credit reporting industry problems, including their dispute process and how they handle unpaid medical debt. This agreement is referred to as the National Consumer Assistance Plan.
The credit reporting industry overhaul is taking place nationally over the course of three plus years with 2018 as the deadline to have all changes made. The overhaul will be implemented in three phases (detailed below) to allow the CRAs to update their IT systems and procedures with data furnishers.
To date, changes to websites and other technical tasks have been acomplished. A change to be implemented this September will address the dispute process. The CRAs will be using trained and empowered employees to review the documentation accompanying disputes. And, if a furnisher says its information is correct, the credit reporting agencies must still look into it and resolve the dispute.
In addition, the credit reporting overhaul will require CRAs to wait 180 days before adding any medical debt