Credit score problems still haunt Americans

WASHINGTON, D.C. – May 25, 2016 – The Consumer Financial Protection Bureau (CFPB) highlighted credit score problems faced by Americans in its monthly consumer complaint snapshot. According to the report, consumers continue to complain about incorrect information on their credit reports, as well as difficulty having errors resolved.

“Credit reports are the foundation of consumers’ financial lives,” says CFPB Director Richard Cordray. “Consumers continue to express their frustration about inaccurate information on their credit reports and difficulty in getting these errors fixed. We will continue to work to ensure that credit report disputes are investigated, errors are fixed and consumers are treated fairly.”

Consumer reporting companies track a person’s credit history and other information. Errors in a consumer’s file can affect everything from their eligibility to take out a mortgage to whether they’re eligible for a job. Since the CFPB began accepting credit-reporting complaints in October 2012, the Bureau has handled approximately 143,700 of them.

Credit score complaint topics

  • Incorrect information on credit reports: 77% of credit reporting complaints submitted to the CFPB relate to incorrect information appearing on their reports. Frequently, these complaints are about a debt collection item that has been paid but appears as an unpaid debt on the report, a debt that is not recognized by the consumer or a debt that is no longer due because it passed the point of being enforceable in court.
  • Difficulty disputing inaccuracies: Consumers consistently report difficulties disputing inaccuracies on their credit report, including long delays trying to speak to a representative at the consumer-reporting company that created the report or the company that furnished the information. Other consumers complained about negative customer service experiences when they were able to get through.
  • High-volume complaint companies: Out of all credit-reporting complaints submitted to CFPB between December 2015 and February 2016, 95 percent involved the three nationwide credit reporting companies – Equifax, Experian and Transunion, though some of the complaints focused more on the information other companies furnished to the top three credit reporting companies.
  • Specialty consumer reporting companies: Consumers also submitted more than 2,000 complaints regarding specialty consumer reporting companies that specialize in background and employment screening, checking account screening, rental screening and insurance screening.

CFPB says that consumer-reporting companies have been a major focus, and it has published tips and guidance for consumers who want to review their credit report and improve their score.

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