Equifax Fined $15 Million for Errors in Consumer Credit Reports
The Consumer Financial Protection Bureau has fined Equifax $15 million over errors related to consumer credit reports. The federal watchdog announced on Friday that the company failed to conduct proper investigations of disputed information.
Equifax is one of the three major credit reporting agencies in the U.S., along with Experian and TransUnion. According to the CFPB’s order, Equifax ignored consumer documents and evidence submitted with disputes, allowed previously deleted inaccuracies to be reinserted into credit reports, provided confusing letters to consumers about investigation results, and used flawed software code leading to inaccurate credit scores.
Importance of Credit Reports
Credit reports contain consumers’ borrowing records, such as loan payment history and bankruptcy filings. Inaccurate information on these reports can have severe financial consequences, affecting qualifications for loans, jobs, rental agreements, and other fundamental aspects of personal life.
Equifax Process Flaws
Equifax processes about 765,000 consumer disputes per month, according to the CFPB. The company’s flawed dispute policies and technology failures have been ongoing since at least October 2017, impacting millions of consumers. Equifax settled the allegations to move past the CFPB’s investigation, stating it has invested over $1.5 billion in technology improvements to enhance the dispute process and consumer support.
Credit Report Maintenance Tips
Consumers should check their credit reports annually and before applying for credit, loans, insurance, or jobs. They should verify identity and account information on the reports and monitor any sudden changes in credit scores. The three major credit bureaus offer free credit report requests weekly through AnnualCreditReport.com or by calling 1-877-322-8228.
Handling Credit Report Errors
Consumers spotting errors on their credit reports should dispute them in writing with documentation and request a return receipt. They can file complaints with the CFPB and state attorney general’s office, ask for their dispute statement to be included in future reports, and seek legal assistance if needed.
Stay Informed and Proactive
Staying informed about credit reports, monitoring changes, and taking proactive steps to address errors are essential for financial health and stability. By following these guidelines, consumers can better navigate the complexities of credit reporting and protect their financial well-being.