CFPB Highlights CRC Reporting Deficiencies
"We will be taking additional steps to ensure that companies correct false and inaccurate information on credit reports."
CFPB Director Rohit Chopra
"We will be taking additional steps to ensure that companies correct false and inaccurate information on credit reports."
CFPB Director Rohit Chopra
The CFPB reported on supervisory deficiencies in credit reporting companies’ ("CRCs") compliance with accuracy and identity theft requirements under the Fair Credit Reporting Act.
In an edition of Supervisory Highlights, the CFPB highlighted that CRCs failed to ensure the accuracy of credit reports and also found that companies that provide information used in such credit reports failed to correct false or fraudulent information.
The CFPB reported the following:
- Consumer reporting companies failed to block or remove information related to identity theft and human trafficking: CFPB examiners found that companies refused to honor consumer requests to block information associated with identity theft based on overbroad criteria; failed to inform consumers when blocks were denied or rescinded; failed to provide victims of identity theft with summaries of rights; and failed to timely block all information resulting from human trafficking identified by consumers.
- Consumer reporting companies accepted information from unreliable furnishers: CFPB examiners found that companies accepted information from information furnishers that may no longer be reliable, verifiable information about consumers. For example, consumer reporting companies continued to include information from furnishers that failed to respond to all or nearly all disputes or that issued the same responses to all disputes.
- Furnishers provided information to consumer reporting companies they knew was false: CFPB examiners found that auto loan furnishers continued to share incomplete or inaccurate information for several months or even years after learning the information was false. In other instances, furnishers provided information even after they determined the information was fraudulent or due to identity theft.
- Furnishers did not follow requirements for dispute investigations and identity theft: CFPB examiners found that some furnishers continued to provide information that consumers were disputing without indicating the information was in dispute. In other instances, furnishers failed to conduct investigations into the accuracy of information consumers disputed.