The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Experian, one of the nation's largest credit reporting agencies, for failing to properly investigate consumer disputes.
The CFPB claims that Experian’s process for handling disputes was inadequate, leading to incorrect information remaining on consumers' credit reports. This could affect their ability to obtain credit, housing, or employment.
Experian allegedly conducted "sham investigations" into consumer disputes, using faulty procedures and often accepting unreliable responses from data providers.
The company also allegedly failed to inform consumers properly about the results of their disputes, sending confusing or incorrect notices. In some cases, previously removed inaccurate information was reinserted into consumer reports without explanation.
The CFPB said it is seeking to stop Experian’s unlawful practices, provide compensation to affected consumers, and impose penalties on the company. This lawsuit highlights the importance of accurate credit reporting and the need for credit agencies to follow the law to protect consumers' rights.
It's the CFPB's latest attempt to corral the credit bureaus that hold consumers' financial lives in their hands. Earlier today, the agency adopted a rule that prohibits lenders from being able to consider medical bills in making loan decisions and to exclude the bills from credit reports
The rule will wipe out around $49 billion in medical bills from the credit reports of around 15 million Americans, the financial regulator said.