The Consumer Financial Protection Bureau (CFPB) recently fined credit bureau Equifax $15 million after the company made multiple errors when handling consumer credit reports and failed to properly investigate related consumer disputes. The announcement was made on January 17. In response, Equifax said it has reached a settlement in the matter, and that over the past few years the company has invested more than $1.5 billion in technology and infrastructure improvements, especially in dispute handling and consumer support. If there are any updates on how to claim compensation later, I’ll share them here.
A credit report is like a ledger of borrowing history, containing key information such as loan repayment records and bankruptcy filings. An inaccurate credit report can have serious financial consequences for consumers, and may even affect their ability to qualify for loans, rent an apartment, or find employment.
- Equifax handles about 765,000 consumer disputes each month.
- The CFPB accused the company’s dispute-handling process since October 2017 of being “defective.”
Consumers are advised to check their personal credit reports at least once a year. The Federal Trade Commission (FTC) also recommends reviewing them before applying for credit, loans, insurance, or a job. If consumers find errors on their credit reports, they should dispute them in writing, include supporting documents, mail the dispute to the credit bureau, and request a return receipt.
