A top watchdog agency for consumer finance has accused credit rating company Experian of failing to properly investigate consumer disputes.
In an announcement Tuesday, the Consumer Financial Protection Bureau (CFPB) said it had sued the company for unlawfully failing to investigate consumers’ issues.
“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 consumer reports,” the agency’s news release said.
CFPB alleges the company has violated the Fair Credit Reporting Act (FCRA) that requires an agency take steps to ensure that reports filed by consumers are accurate and an investigation is conducted.
The bureau alleges Experian violated the FCRA in “numerous ways,” including by conducting sham investigations that don’t properly address a consumer’s dispute and by “improperly reinserting inaccurate information” on a consumer’s report.
“Credit reporting errors can have serious consequences for a family’s finances, and it is critical that credit reporting giants follow the law,” CFPB Director Rohit Chopra said in a statement.
CFPB said the company’s failure on disputes, among other issues, violates the Consumer Financial Protection Act’s prohibition on unfair acts or practices.
The CFBP has the authority to take action against companies that violate consumer’s rights. The suit against Experian is seeking to stop the company from unlawful conduct and to provide redress for harmed consumers.
The Hill has reached out to Experian for comment.
