CFPB Reports 56% Increase in Credit Reporting Complaints
The Consumer Financial Protection Bureau recently released its monthly complaint report for July 2015, which showed a significant 56% increase in credit reporting complaints between June and July of this year. The report also showed a 45% increase in credit reporting complaints between the May-July period of 2014 versus 2015.
Debt collection remains as the most common complaint among consumers, just as it was in June’s report.
Why are consumers so upset? For most of them (77%), the issues lie in having incorrect information on their credit reports. Many complaints stemmed from debts that had been paid but had remained on their credit report, or payments which were reported as late before they were even due. These errors can lower a consumer’s credit score, which could reduce lending options or lead to higher interest rates.
Another issuer that consumers are complaining about is the extensive identity verification process they must complete to access their credit reports online. Many consumers are unable to view their information through the Internet because they cannot get through the multi-step verification processes required on most credit reporting websites.
The CFPB has put out a flyer explaining how consumers can improve their credit scores and address issuers with credit reporting. If you are having issues accessing your credit report or you believe there is inaccurate information, contact the credit bureau in charge of the report (Equifax, Experian or TransUnion) and alert them to the matter as soon as possible. You may also file a complaint directly with the CFPB.