WASHINGTON–The Government Accountability Office (GAO) has told the Consumer Financial Protection Bureau it needs to do a better job of communicating its expectations for accuracy, dispute investigations for consumer reporting agencies.
In a new report GAO said the CFPB needs to improve expectations around reasonable procedures for assuring maximum possible accuracy and reasonable investigations of consumer disputes when communicating with the consumer reporting agencies (CRAs).
In its report, “CFPB Should Define Its Supervisory Expectations,” GAO said the Bureau has not defined its expectations about how the companies can comply with key statutory requirements, and it cited provisions of the Fair Credit Reporting Act (FCRA) that call on CRAs to follow reasonable procedures for ensuring maximum possible accuracy, and to conduct reasonable investigations of consumer disputes as one example.
‘Deficiencies’ Identified
“CFPB has identified deficiencies related to these requirements in its CRA examinations, but it has not defined its expectations – such as by communicating information on appropriate practices – for how CRAs can comply with these requirements,” the GAO report reads.
In addition, GAO recommended that absent that information, the CRAs should look to other sources of information, such as court cases or industry presentations, to determine what the consumer bureau will consider to be “noncompliant” during exams.
“By providing information to CRAs about its expectations for complying with key FCRA requirements, CFPB could help achieve its goal of accurate consumer reporting and effective dispute resolution processes,” GAO stated. “Such information also could help to promote consistency and transparency in CFPB’s supervisory approach.”