CFPB Warns Companies to Investigate Credit Report Errors

September 4, 2013, Written By John H. Oldshue

The Consumer Financial Protection Bureau is cracking down on companies that supply information to consumer reporting companies. This should make it easier for consumers to get reporting errors resolved.

The CFPB issued a notice today that says these companies–called “furnishers”–are responsible for investigating consumer disputes forwarded by the consumer reporting companies. Furnishers must review all relevant information provided with the disputes, including documents submitted by consumers.

“Credit reports play a critical role in the lives of consumers,” said CFPB Director Richard Cordray in a statement. “Given the importance of these reports, consumers need to know that their documents are being reviewed when they dispute what they believe is a mistake on a report. Today’s bulletin helps ensure that the right people will be doing just that.”

The CFPB has the enforcement authority to judge if a furnisher has engaged in any acts or practices that violate the Fair Credit Reporting Act or other federal consumer financial laws. If the CFPB finds a violation of the Fair Credit Reporting Act or other federal consumer financial laws, it can use enforcement actions and penalties, including restitution to harmed consumers.

This is good news for consumers because credit reports affect everything from interest rates and insurance to employment. A mistake or disputed charge could knock points off a credit score and trigger higher interest rates. Consumers have the right to dispute inaccuracies and ask questions, but they often have difficulty finding answers or resolution between the agencies and furnishers.

The CFPB is enforcing the legal obligations of the furnisher. Consumers may dispute an item on their credit report with the consumer reporting agency and the agency must inform the furnisher of the dispute. The agency must forward all relevant information about the dispute to the furnisher. The furnisher is required to make an investigation and report back to the consumer reporting agency that originally sent the dispute. Furnishers must report the findings of the investigation to nationwide consumer reporting companies if those companies have received inaccurate or incomplete credit information. Furnishers must modify, delete or permanently block disputed information that is incomplete, incorrect or can’t be verified.

The CFPB found the reporting system did not provide a means for credit reporting companies to forward to furnishers any documents submitted by consumers. The three largest nationwide consumer reporting companies–Equifax, TransUnion and Experian–use an electronic system, known as “e-OSCAR,”  to send information relating to consumer disputes to furnishers. The CFPB says the “e-OSCAR” system did not provide a means for credit reporting companies to forward to furnishers any documents submitted by consumers. The CFPB has upgraded the “e-OSCAR” so that the three companies can now send furnishers any relevant dispute documents mailed in by consumers.

To submit a complaint, consumers can:

  • Go online at www.consumerfinance.gov/Complaint
  • Call the toll-free phone number at 1-855-411-2372
  • Fax the CFPB at 1-855-237-2392
  • Mail a letter to: Consumer Financial Protection Bureau, P.O. Box 4503, Iowa City, Iowa 52244.


The information contained within this article was accurate as of September 4, 2013. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.