CFPB Report Reveals Big 3 Credit Bureaus Failed to Fully Respond to Consumers over Credit Report Errors

The CFPB reported receiving more than 700,000 complaints from consumers regarding Equifax, Experian, and TransUnion.

The majority of those complaints were about inaccurate information on their credit and consumer reports. Most frequently consumers said that the inaccurate information belongs to someone else, or that they were a victim of identity theft.

The Fair Credit Reporting Act (FCRA) requires Equifax, Experian, and TransUnion to review complaints that are sent them by the CFPB when consumers allege there is incomplete or inaccurate information in their consumer reports and the consumer has already tried to fix the problem with the reporting agency. The agency must then report back to the CFPB with their findings and any actions taken to resolve these complaints to the CFPB. The CFPB report states that:

• Equifax most often promised to open investigations and send the results to the consumers at later dates, but it would fail to provide the CFPB with the outcomes of the investigations.

• TransUnion made similar promises and frequently failed to provide the outcomes of investigations to the CFPB. It often stated it would take no action on complaints because it believed the complaints were submitted by third parties.

• For many complaints, Experian frequently stated it would take no action because it believed the complaints were submitted by third parties, however, it did respond to the remaining complaints with substantive responses.Equifax most often promised to open investigations and send the results to the consumers at later dates, but it would fail to provide the CFPB with the outcomes of the investigations.

The CFPB report determined that last year the three reporting agencies reported relief response to less than 2% of submitted complaints, which was down from nearly a 25% response in 2019. Because of this, most consumers did not receive meaningful responses to complaints filed through the CFPB complaint process.

You can read the full press release from the CFPB here.