1 in 5 Consumers Has an Error on a Credit Report

Do you have errors on a credit report?

Credit reports play an important role in shaping consumers’ lives, influencing decisions made by lenders, insurers, employers, landlords, and more. However, credit reports are prone to errors, with an estimated 1 in 5 consumers have an error on at least one credit report. Recognizing the significance of accurate credit reporting, the Fair Credit Reporting Act (FCRA) was enacted to ensure that when consumers dispute credit report errors, credit reporting companies and data providers must promptly correct inaccurate information.

In pursuit of this commitment, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC), responsible for enforcing fair credit reporting laws, have jointly filed an amicus brief in the U.S. Court of Appeals for the Second Circuit in Suluki v. Credit One Bank, NA, No. 23-721 (2d Cir.). The purpose of the CFPB’s amicus action is to ensure that companies furnishing information to credit reporting agencies adhere to the FCRA’s requirements, particularly concerning the removal of information that cannot be verified by the furnisher of the disputed information.

Did you know you have the right to dispute credit report errors?

Under the FCRA, consumers have the right to dispute credit report errors. Generally, consumers can start the dispute process by making a dispute to the nationwide credit reporting agencies like Experian, Equifax, or TransUnion. After making a dispute, these credit reporting agencies must either delete the disputed information or reinvestigate it by contacting the company that supplied the disputed data (the furnisher). If the furnisher of the disputed information cannot verify the accuracy of the disputed information, then it must inform the credit reporting agency that the data cannot be verified, prompting its removal. Free Sample Credit Report Dispute Letter.

In Suluki, the issue arises when furnishers claim the FCRA allows them to continue reporting disputed information to credit reporting agencies even if they cannot determine the accuracy of the disputed information. That doesn’t make sense, right? The CFPB and FTC agree with me and argue, through their amicus brief, that this interpretation is incorrect. Congress established explicit requirements regarding unverified information within the FCRA, intending that companies cease reporting such data once the accuracy of the disputed information cannot be established by the furnisher.

The CFPB’s and FTC’s efforts underscore their commitment to consumer protection and ensuring that furnishers comply with their legal obligations under the FCRA. The CFPB and FTC have filed similar briefs in recent FCRA cases to reinforce the importance of compliance. Furthermore, they are actively working to preserve the authority of state legislators and law enforcement in regulating credit reporting markets, ensuring consumers have effective recourse when encountering issues with their credit reports.

In summary, the joint amicus brief in the Suluki v. Credit One Bank case demonstrates the CFPB and FTC’s dedication to safeguarding accurate credit reporting and protecting consumers from the adverse effects of erroneous information on their credit reports.

Need help with a credit report error?

The Adkins Firm represents consumers who have errors on credit, employment background and tenant screening reports. We help our clients clear their names. Do you have errors on a credit report, background report or tenant screening report due to fraud?  Have you disputed credit report errors and the credit reporting agencies verified the inaccurate information? If you answered yes, then you may have a claim under the federal Fair Credit Reporting Act. Please note, there is a statute of limitations that may bar you from recovering for your damages. Don’t wait.  Contact us for a free case review.