Credit reporting firms should fix practices amid consumer complaints- U.S. watchdog

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Gripes about US credit reporting agencies have long topped the list of public complaints in the CFPB’s database, which debuted in 2012 to boost transparency on consumer issues.

The watchdog recommended that Experian, Equifax and TransUnion consider how to improve the accuracy of credit reports by giving consumers more control over their data, according to a CFPB report based on 488,000 complaints it received from October 2021 to September 2022.

The regulator also said that credit reporting firms should examine whether their automated processes make it more difficult for consumers to spend excessive amounts of time correcting errors in their reports.

The CFPB is required by law to submit an annual report on the complaints that consumers submit about the national credit bureaus.

“We will be exploring new rules to ensure they are following the law, rather than cutting corners to fuel their profit model,” CFPB Director Rohit Chopra said in a statement.

TransUnion, Experian and Equifax did not immediately respond to requests for comment.

The CFPB also found that credit reporting agencies gave more relief to consumers who complained last year than in previous periods. Most consumers also now receive more substantive responses to their complaints, the agency said.

(Reporting by Hannah Lang in Washington; Editing by Lananh Nguyen and Aurora Ellis)

By Hannah Lang

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