In this article, the Consumer Financial Protection Bureau imposed a $15 million fine on Equifax for errors related to consumer credit reports. The agency accused Equifax of failing to conduct proper investigations of disputed information. Equifax is one of the three major credit reporting agencies in the U.S., alongside Experian and TransUnion.
According to the CFPB’s order, Equifax neglected consumer documents and evidence submitted with disputes, allowed previously deleted inaccuracies to reappear in credit reports, provided confusing information to consumers about investigation results, and used flawed software code affecting consumer credit scores.
Credit reports contain records of consumers’ borrowing activities, including loan payment history and bankruptcy filings. Inaccurate information on these reports can have severe financial consequences, affecting loan eligibility, job prospects, apartment rentals, and other aspects of personal life.
Equifax processes approximately 765,000 consumer disputes monthly, with flawed dispute policies and technology failures identified since at least October 2017. The CFPB alleged that Equifax violated the Fair Credit Reporting Act, to the detriment of millions of consumers.
Equifax settled the allegations to conclude the CFPB’s investigation, stating that it has invested over $1.5 billion in technology and infrastructure improvements, including changes to its dispute process and consumer support.
The $15 million civil penalty follows a lawsuit filed by the CFPB against Experian for conducting inadequate investigations of credit report errors. Consumers are advised to check their credit reports annually and before applying for credit, loans, insurance, or jobs.
Consumers should review identity information and account details on their credit reports for accuracy. Credit reports differ from credit scores, which are numerical outputs based on the information in a consumer’s credit report.
The major credit bureaus allow consumers to request a free credit report weekly. Consumers should dispute any errors in writing with documentation and send it by mail to the credit bureau. Filing a complaint with the CFPB and the state attorney general’s office is recommended for unresolved disputes.
Consumers can request that a statement of their dispute be included in their file and future credit reports. Seeking legal advice may be necessary for persistent errors causing financial harm. Organizations like the National Association of Consumer Advocates can help consumers find attorneys for credit reporting issues.
