NEW YORK–A new analysis of consumer complaints related to credit reports finds two-thirds are related to having someone else’s information on their report. The same report also identified the top five states where people “should complain more.”
The new study from consumer protection attorneys FCRA by Fair Credit analyzed data from the Consumer Financial Protection Bureau and Experian from September 2021 to 2022. It discovered that 131,989 of the total 197,709 credit report complaints concern specifically information that belongs to someone else, according to the organization.
FCRA by Fair Credit is a law firm that specializes in credit report issues.
“The study found that 18 U.S.0 states have credit scores below the national average of 714,” FCRA by Fair Credit said. “Of them, the ones that complain the least about errors in their credit reports are West Virginia, New Mexico, Kentucky, Oklahoma and Indiana. Residents of these five states have the biggest potential to improve their credit scores and catch up with the U.S. average.
The Top Five
According to the report, of those five:
- West Virginia has an average credit score of 700 - 14 points below the national average. “Only 52 people in 100,000 here take formal action to have their credit reports corrected.
- In New Mexico, this number stands at 68, with the state averaging to a credit score of 699.
- Kentucky only has 73 complaints filed for every 100,000 residents, leading to the state’s average score to stagnate at 702 over the past two years.
- Oklahoma is the fifth worst state for average credit scores, estimated at 693, yet only 92 people out of 100,000 try to fix the likely errors in their credit reports.
- Lastly, Indiana, which is two points short of the national credit score average, still only sees 102 residents per 100,000 file complaints to address the problems in their reports.
The Complaint List
According to FCRA by Fair Credit, the issues people most 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,” the organization said.
FCRA by Fair Credit further said:
- In Oklahoma there is a pattern of reports being used improperly. The majority of the cases are resolved following a formal complaint.
- 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.
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