CFPB Takes On How 'Eye-Opening' Rate of Credit Errors Is Handled
A February study from the Federal Trade Commission says that 20% of Americans have errors on at least one of their three credit reports (from Experian, Transunion and Equifax (EFX)) and that 5% had mistakes that "could led to them paying more for products such as auto loans and insurance."
"These are eye-opening numbers for American consumers," said Howard Shelanski, director of the FTC's Bureau of Economics. "The results of this study make it clear that consumers should check their credit reports regularly. If they don't, they are potentially putting their pocketbooks at risk."
But it's not just the consumer's responsibility. Companies that supply consumer financial data to credit reporting companies have skin in the game, and last week the U.S. Consumer Financial Protection Bureau put a spotlight on credit reporting practices to start holding them accountable for their accuracy and thoroughness.Companies that provide consumer financial data to credit reporting agencies are called "furnishers." One of their chief responsibilities is to investigate consumer complaints on credit reports, using data submitted by consumers and provided by credit reporting agencies.
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