The top consumer finance watchdog has accused credit rating agency Experian of failing to properly investigate consumer disputes.
in Tuesday's announcementthe Consumer Financial Protection Bureau (CFPB) announced that it has filed charges against the company for unlawfully failing to investigate consumer issues.
“The CFPB found that Experian did not take sufficient steps to capture, process, investigate, and notify consumers about consumer disputes, and that, as a result, consumer reports contained incorrect information. ” said the agency's news release.
The CFPB alleges the company violates the Fair Credit Reporting Act (FCRA), which requires agencies to take steps to ensure and conduct investigations to ensure that reports submitted by consumers are accurate.
The bureau said Experian engaged in “a variety of methods,” including conducting false investigations that did not adequately address consumer disputes and “improperly reinserting inaccurate information” into consumer reports. It alleges that the company violated the FCRA.
“Credit reporting errors can have a serious impact on household finances, and it's important that credit reporting giants follow the law,” CFPB Director Rohit Chopra said in a statement.
The CFPB said the company's default in disputes and other matters violated the Consumer Financial Protection Act's prohibition on unfair acts and practices.
The CFBP has the power to take action against companies that violate consumer rights. The lawsuit against Experian seeks to stop the company's illegal conduct and provide relief to harmed consumers.
The Hill has reached out to Experian for comment.
