U.S. Watchdog Urges Credit Reporting Firms to Address Consumer Complaints

By Hannah Lang

The U.S. Consumer Financial Protection Bureau (CFPB) has recommended significant changes for Experian, Equifax, and TransUnion in response to nearly half a million complaints logged over the past year.

Consumer complaints regarding U.S. credit reporting agencies have consistently been the most prevalent in the CFPB’s database since its launch in 2012, which aims to enhance transparency regarding consumer issues.

The CFPB’s report, based on 488,000 complaints collected from October 2021 to September 2022, suggests that these agencies should focus on improving the accuracy of credit reports by granting consumers greater control over their personal data. Additionally, the regulatory body highlighted the need for credit reporting companies to review their automated processes, which may complicate the efforts of consumers trying to correct inaccuracies in their reports.

By law, the CFPB is obligated to provide an annual report detailing the complaints received about the nation’s credit bureaus. CFPB Director Rohit Chopra stated, "We will be exploring new rules to ensure that they are following the law, rather than cutting corners to fuel their profit model."

Neither TransUnion, Experian, nor Equifax immediately responded to requests for comment. The CFPB’s findings suggest that credit reporting agencies have been more responsive to consumer complaints in the past year compared to previous periods. Many consumers are now receiving more meaningful resolutions to their complaints, according to the agency.