CFPB Sues Experian for Sham Investigations of Credit Report Errors
Experian does not properly investigate disputes and fails to remove or reinserts errors on reports, threatening consumers’ access to credit, employment, and housing
WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) sued Experian, the nationwide consumer reporting agency, for unlawfully failing to properly investigate consumer disputes. The CFPB alleges that Experian does not take sufficient steps to intake, process, investigate, and notify consumers about consumer disputes, resulting in the inclusion of incorrect information on credit reports. Inaccurate or false information on consumer reports can threaten consumers’ access to credit, employment, and housing.
“When consumers disputed errors on their credit reports, Experian conducted sham investigations rather than properly reviewing the disputes as required by federal law,” said CFPB Director Rohit Chopra. “Credit reporting errors can have serious consequences for a family’s finances, and it is critical that credit reporting giants follow the law.”
Experian, based in Costa Mesa, California, is one of the nation’s three largest credit reporting conglomerates. Experian is a subsidiary of Experian plc (LSE:EXPN), a global data broker and analytics company headquartered in Ireland. Experian maintains information on most families in America. Experian markets, advertises, sells, offers, and provides credit scores, credit reports, credit monitoring, and other related products to consumers and third parties. Information in consumer reports is provided to Experian by data furnishers, including banks, credit card companies, and debt collectors. The consumer reporting agency sells its consumer reports to creditors and businesses who are evaluating whether to offer a consumer various products, services, and opportunities—such as a loan, employment, or housing.
