Experian does not adequate investigate consumer disputes, the Consumer Financial Protection Bureau (CFPB) claimed in a lawsuit filed against the credit reporting agency.
In a lawsuit filed in the U.S. District Court for the Central District of California said that Experian does not take sufficient steps to intake, process, investigate and notify consumers about consumer disputes in violation of the Fair Credit Reporting Act (FCRA), officials with CFPB said. These actions negatively impact consumers by leaving incorrect information on credit reports that can threaten consumers’ access to credit, employment and housing.
“When consumers disputed errors on their credit reports, Experian conducted sham investigations rather than properly reviewing the disputes as required by federal law,” CFPB Director Rohit Chopra said. “Credit reporting errors can have serious consequences for a family’s finances, and it is critical that credit reporting giants follow the law.”
One of the three largest credit reporting conglomerates, Experian maintains information on most families in America, the bureau said.
The FCRA requires that credit reporting agencies like Experian take steps to ensure that consumer reports are accurate and to conduct investigations of information when it is disputed by consumers. The CFPB alleges that Experian conducts sham investigations that fail to properly address consumer disputes, that the agency improperly reinserts inaccurate information on consumer reports and that it fails to provide credit reporting companies with consumer-submitted documentation and give uncritical deference to furnishers’ responses to disputed information.
The bureau said it is seeking to “bring Experian into compliance with the law, consumer redress, and the imposition of civil money penalties.”