The Consumer Financial Protection Bureau (CFPB) has released its annual report that focuses on improvements and deficiencies in the nationwide consumer reporting companies’ responses to consumer complaints.
The analysis also includes a series of CFPB recommendations to aid Equifax, Experian, and TransUnion in improving consumer financial protection laws compliance while serving consumers better.
The report is based on 488,000 consumer complaints the CFPB transmitted to Equifax, Experian, and TransUnion from October 2021 through September 2022.
“TransUnion, Equifax, and Experian routinely top the list of complaints submitted by consumers,” CFPB Director Rohit Chopra said. “We will be exploring new rules to ensure that they are following the law rather than cutting corners to fuel their profit model.”
The Fair Credit Reporting Act requires the CFPB to submit an annual report about complaints submitted by consumers regarding the nationwide consumer reporting companies, according to the agency.
The analysis showed that consumer reporting agencies have changed how they respond to complaints. Most complaints now receive more substantive responses; have provided more tailored complaint responses; and reported greater rates of relief in response to complaints.
The CFPB has issued recommendations to the consumer reporting agencies that include considering consumer burden when implementing automated processes; recognizing technology is also improving for consumers; and taking into consideration how to transition the market from control and surveillance to consumer participation.