FT. LAUDERDALE, Fla.–An analysis of nearly 200,000 complaints over credit reports filed with the CFPB finds nearly two-thirds are related to reports that contain someone else’s information, according to a new report.
The analysis was conducted by the law firm FCRA by Fair Credit, a law firm that specializes in correcting errors in credit reports, background checks and tenant screening.
U.S. residents filed 197,709 credit report complaints with the Consumer Financial Protection Bureau between September 2021 and 2022, according to FCRA by Fair Credit. During that time period, the law firm said its analysis discovered 131,989 of the total 197,709 credit report complaints concern specifically information that belongs to someone else.
The Findings
Among the topline findings:
- Only 52 out of 100,000 residents of West Virginia complain about errors in their credit reports. “Of all US states with below average credit scores, West Virginia residents file the least complaints about their credit reports. This is despite the Federal Trade Commission estimating that around one in four credit reports contain errors.
- The study found that 18 states have credit scores below the national average of 714.
- The prevailing issue people complain about in relation to their credit scores in West Virginia, New Mexico and Kentucky is about someone else’s data being misattributed to the account holder. “This is the case for 66.7% of U.S. states, where 131,989 complaints out of the total of 197,709 between September 2021 and 2022 concern specifically information that belongs to someone else,” FCRA by Fair Credit said. “In Oklahoma, however, there is a pattern of reports being used improperly. The majority of the cases are resolved following a formal complaint. Meanwhile, Indiana residents are facing three main issues. Besides dealing with incorrect information on their reports and their improper use, the investigations of credit reporting companies into existing problems largely end up unresolved.”
A ‘Surprise’
“We were very surprised to learn that very few people are aware, firstly, that there is a 25% chance that a low credit score is not their fault and, secondly, that this can be easily fixed by taking legal action,” said a spokesperson for FCRA by Fair Credit. “Checking a credit score is currently free via the official website – annualcreditreport.com – and can save (consumers) a great deal of grief when you need that three-digit number to be in top shape.”
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