The Consumer Financial Protection Bureau (CFPB) recently issued consumer reporting company guidance regarding screening and elimination obligations related to credit report junk data.
“When a credit report accuses someone of defaulting on a loan before they were born, this is nonsensical, junk data that should have never shown up in the first place,” CFPB Director Rohit Chopra said. “Consumer reporting companies have a clear obligation to use better procedures to screen for and eliminate conflicting information, or information that cannot be true.”
Junk data can result in consumers being denied credit, housing, or employment or paying more for credit, with junk data reflecting a child having a mortgage or a credit report showing a debt incurred years before the person’s birth.
The CFPB guidance stipulates that companies must have policies and procedures to detect and remove inconsistent account information and information that cannot be accurate.
Consumer complaints submitted to the agency remain a significant concern about inaccuracies in consumer reports. Consumer reporting companies are legally required to follow reasonable procedures to maintain the maximum possible accuracy of the information collected and reported.
The CFPB noted individuals can submit consumer or credit reporting complaints by accessing the agency’s website or calling (855) 411-CFPB (2372).