WASHINGTON–A report from the Consumer Financial Protection Bureau (CFPB) that is critical of how the three big credit bureaus respond to consumer complaints is being hailed by one consumer group.
The National Consumer Law Center said the CFPB report, which found Equifax, Experian and TransUnion have actually gotten worse at responding to consumer complaints, raises numerous questions.
“The CFPB is to be commended for issuing this report and shining a spotlight on the serious problems of the Big Three credit bureaus in responding to credit reporting disputes. We appreciate the leadership of Commissioner Chopra and the efforts of the CFPB staffers who worked on the report,” the organization said. “We endorse the CFPB’s conclusion that ‘The [credit bureaus’] responses to these complaints raise serious questions about whether they are unable—or unwilling—to comply with the law.’ And quite troubling is CFPB’s highlighting that the credit bureaus reported relief in response to less than 2% of covered complaints.
‘Ample Evidence’
According to the NCLC, the CFPB report provides “ample evidence” that the credit bureaus have failed to comply with the Fair Credit Reporting Act (FCRA)’s dispute investigation requirements, although it added “this failure” has been ongoing for decades, ever since the FCRA was passed in 1970.
“It is way past time for reform,” the group continued. “The CFPB is the supervisor and regulator for the credit bureaus; what other industry would dare refuse to provide meaningful relief in 98% of the consumer complaints referred to them by their supervisor? This level of impunity against its own regulator must be met with swift, assertive, and uncompromising action that fundamentally reforms the credit bureaus in a deep, structural manner.
“Congress should also act, by passing the type of omnibus, head-to-toe reform legislation (H.R. 4120) that the House of Representatives already passed once in January 2020. Or better yet, by scrapping the system and starting over with a public credit registry as proposed by Demos,” the NCLC concluded.