On January 7, 2025, the CFPB filed a lawsuit against Experian alleging that Experian violated FCRA by failing to properly conduct reinvestigations of disputed information in consumer credit files; failing to delete inaccurate, incomplete, or unverified information in consumer credit files; failing to provide adequate written notice to consumers of the results of its reinvestigations; failing to prevent the improper reinsertion of previously deleted information from consumer credit files; and failing to follow reasonable procedures to assure maximum possible accuracy of the credit information Experian reports on consumers. In addition, the complaint alleges that Experian committed unfair acts or practices in violation of the Consumer Financial Protection Act of 2010 by (1) failing to convey consumers’ disputes to furnishers fully and accurately, and instead distorting, truncating, and mischaracterizing consumers’ disputes; (2) relying excessively on furnishers to resolve disputes, routinely doing nothing more than sending the dispute to a furnisher and implementing the furnisher’s response, despite having evidence of that furnisher’s unreliability; and (3) improperly reinserting tradelines into consumer credit reports due to its practice of failing to adequately match newly reported tradelines to tradelines that were previously deleted as a result of a dispute if the subsequent furnishing was from a new furnisher. The Bureau seeks, among other things, to bring Experian into compliance with the law, consumer redress, and the imposition of civil money penalties.
Understanding the FCRA - Credit Reporting Law
Most consumers don’t realize that when they file a credit report dispute, the process is handled through a private system called e-OSCAR—built by the credit bureaus, not by lawmakers or regulators. This system reduces disputes to short codes and often prevents meaningful investigations. As a result, false information may remain on your report even after you dispute it. If your credit dispute has been ignored or mishandled, you may have legal rights under the Fair Credit Reporting Act (FCRA).
e-OSCAR is the “Online Solution for Complete and Accurate Reporting” system through which the consumer reporting industry (consumer reporting agencies and data furnishers) resolve disputes brought by consumers concerning the accuracy of information maintained in their credit files.
When a consumer contacts a consumer reporting agency with a dispute, the agency transmits an electronic form called an ACDV through e-OSCAR to the data furnisher. The data furnisher responds to the consumer’s dispute by returning the ACDV through e-OSCAR. For example, if a consumer disputes the accuracy of the payment history on their Citibank credit card to Trans Union, Trans Union will send an ACDV to Citibank informing Citibank of the consumer’s dispute and Citibank will respond to that dispute by returning the ACDV to Trans Union.
e-OSCAR also allows data furnishers to correct or delete a consumer’s account by sending an electronic form called an AUD. When a consumer contacts a data furnisher and requests a change of information that has been previously reported, the data furnisher researches the account. If the data furnisher verifies that the account information in question needs to be modified, the company will use the e-OSCAR system to complete an AUD.
