Transunion ze problems11/19/2023 The bureau also cited the credit reporting companies for accepting these findings without an independent investigation. TransUnion referred the most, 80% to 82%.ĭata furnishers - the providers of credit information, such as credit card companies and lenders - have been cited by the CFPB for conducting insufficient investigations. ![]() The subcommittee also found that the credit rating companies referred more than half of the disputes to data furnishers for investigation between 20. TransUnion also uses envelope-based criteria in its discard process. Equifax, for instance, tosses out mail that "tends to use identical language and format come from the same zip code."Įxperian accounts for "envelope characteristics" and "letter characteristics," including "same/similar ink color," and "same/similar font," when choosing which disputes to disregard. The companies' defense, says the subcommittee, is that disputes are discarded without investigation when they suspect a credit repair service is the one making the complaint.īut the subcommittee says each agency uses vague criteria to determine which disputes are submitted by an unauthorized third party. At least 13.8 million were thrown out between 20, the subcommittee found.ĭiscarding disputes violates the fair credit laws if any are submitted directly by consumers to authorized representatives. Yet according to evidence obtained by the subcommittee, the credit raters discard millions of disputes a year without investigation. Consumers disputed nearly 336 million items, including names, addresses or credit accounts, on their credit reports from 2019 through 2021, the subcommittee found. But data obtained by the subcommittee showed Equifax alone received nearly 14 million complaints in 2021.ĬFPB also received a "record-breaking" amount of complaints about the credit rating companies from 2020 through 2021, with more than 619,000 in 2021 alone. The CFPB estimated the combined number of dispute submissions among Equifax, Experian and TransUnion to be 8 million in 2011, according to the panel. Consumer fraud can also lead to faulty consumer credit reports.īut consumers have been disputing information found in their credit reports on a larger scale than previously known, the subcommittee found. Under the CARES act, paused loan payments were supposed to be reported as current, though some lenders may have incorrectly categorized them as late. The subcommittee partly credited the pause on student loan payments and an increase in pandemic-related identity theft to credit reporting errors. Experian corrected about 52% of the disputed late payments or other bad data and TransUnion fixed between 49% and 53% of disputed credit reports during this time, the subcommittee found. ![]() The subcommittee found that Equifax changed between 43% and 47% of the disputed items each year from 2019 through 2021. 13 letter that the majority of credit report disputes have not resulted in the correction or removal of reported errors from credit reports. 13 letter to Consumer Financial Protection Bureau Director Rohit Chopra.Ĭlyburn asked the chief executive officers of Equifax, Experian and TransUnion in May for information about the companies' responses to consumer complaints in the early days of the pandemic.ĬFPB reported then that 4.1% of complaints were resolved in 2021, compared with nearly 25% of complaints in 2019, before the pandemic.Ĭlyburn said in his Oct. "These data also raise concerns about whether the are fulfilling all of their obligations to consumers and to the Consumer Financial Protection Bureau (CFPB) under the Fair Credit Reporting Act (FCRA)," the South Carolina Democrat wrote in an Oct. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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