Consumer complaints about credit reports more than doubled from 2018 to 2021, according to the Consumer Financial Protection Bureau (CFPB) complaint database. The credit check is by far the most common complaint with the federal authority.
Credit reports are still a sore point for consumers
Accurate credit reports are vital for consumers. Inaccurate or fraudulent negative information can have a significant impact on a consumer’s credibility and ability to obtain credit when needed.
In reviewing the CFPB’s complaint database, Consumer Reports found that the number of complaints on credit reports associated with it has doubled from 2018 to 2021 and is on track to set a new record this year.
Furthermore, there are far more complaints about credit reports than there are complaints about products and services offered by financial institutions. In the first six months of 2022, credit reporting complaints accounted for nearly 75% of all complaints filed with the federal agency.
The CFPB addressed this issue in January, when it alleged that the three national credit bureaus, Experian, Equifax and TransUnion, may be violating the Fair Credit Reporting Act by failing to routinely process consumer complaints about credit reporting errors.
Federal Agency makes signals
In March, the federal agency flagged inaccuracies in medical debt reports and promised to take action against credit bureaus and those who provided them with the data if the inaccuracies are not corrected.
Furthermore, and asks the three credit bureaus not only to ensure that credit reports are accurate, but also to make credit reports permanently free to access so that consumers can more easily monitor their credit files and catch errors before they become public.
Experian allows consumers to access their Experian credit report and FICO score at any time for free, and you can also access your TransUnion credit report at any time for free. However, Equifax limits its free credit reports to six per year.
By law, consumers can also access their weekly credit reports free of charge from any of the credit reporting agencies through AnnualCreditReport.com, but this will reset to once every 12 months in 2023.
Because credit report errors can have such a significant impact on your credit score, it’s important that you take the time to review your reports as often as possible and dispute inaccurate information directly with the credit bureaus.