As of February 1, the Consumer Financial Protection Bureau (CFPB) has handled close to 185,700 complaints from consumers about credit reporting companies (CRC). In the recent Supervisory Highlights Consumer Reporting Special Edition, the CFPB reviews what steps they have taken to review and address the concerns and problems in the credit reporting market.
The CFPB has taken steps to ensure accuracy of information from CRCs, as well as directed these companies to increase quality control, according to the report. The main concern has been data inaccuracy and dispute processes.
When dealing with a dispute from a consumer, the CFPB found that one or more of the consumer reporting companies have not followed federal requirement regarding disputes. CFPB direction has addressed this concern and CRCs have improved in sending response letter to consumers.
According to the report, improvements in quality control directed by the CFPB have increased data accuracy. With better data accuracy, consumers are less likely to experience faults in their report such as already-paid bills showing up as unpaid.
One of the problems found by the CFPB was inaccurate data being supplied to the CRCs, so in addition to monitoring the data that the CRCs put out, the CFPB has taken steps to monitor the information coming in so that the CRCs can provide the most accurate data possible. CRCs have taken necessary steps to improve the accuracy of information tackle the issue of “garbage in, garbage out”.
“Since we began our oversight work, the CFPB has been uncovering and correcting problems in the consumer reporting industry,” said CFPB Director Richard Cordray. “Because of our work, important improvements are being made. Much more work needs to be done but our corrective actions are leading to positive changes that are benefiting consumers all over the country.”