The Consumer Financial Protection
Bureau is putting creditors and other companies that supply information to
consumer reporting companies on notice that they need to improve their
practices.
The companies, called furnishers,
investigate consumer disputes forwarded by the consumer reporting companies.
If consumers have errors in their
credit reports, they can be denied credit or the cost of their insurance or
credit could be increased.
When consumers file a dispute with a
consumer reporting company about errors or omissions in their credit report, the
company must inform the furnisher about the dispute and forward all relevant information
about the dispute to the furnisher.
After the furnisher receives the
information, it must review it, conduct an investigation, and respond to the
consumer reporting company.
The bureau issued a bulletin on the
duties and responsibilities of furnishers when complaints are made about credit
reports. It warns the companies that action will be taken if the law isn’t
followed.
Consumers
Union, publishers of Consumer Reports, thinks the bulletin sends the right
message, not just to creditors, but also to the entire credit-reporting
industry.
“It’s a
clear signal that companies that have avoided close scrutiny for years are
being held to a higher standard when it comes to how they treat consumers,”
Consumers Union said. “We think that greater oversight of credit reporting is
long overdue.”
A study by the Federal Trade Commission early this year found
that one in five consumers have errors in their credit reports.
See the 60 Minutes Overtime program, “The ONE Thing to Know
About Your Credit Report,” for information on the difficulties consumers face
when they attempt to get their credit reports corrected.
It’s recommended that consumers get a free copy of their
credit report annually.
To order, visit annualcreditreport.com, call 877-322-8228,
or complete the Annual
Credit Report Request Form and mail it to: Annual Credit Report
Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Don’t contact the
three credit reporting companies individually. They’re providing free annual
credit reports only through annualcreditreport.com,
877-322-8228, or mailing to Annual Credit Report Request Service.
If you have a complaint about a credit
reporting company, you can submit a complaint to the bureau. To submit a
complaint, go consumerfinance.gov/complaint,
call 855-411-2372, fax 855-237-2392, or send a letter to: Consumer Financial Protection Bureau, P.O. Box 4503, Iowa
City, Iowa 52244.
