CFPB Review Discloses Deficiencies in Responses to Consumer Complaints at Big Three Credit Agencies

The CFPB recently released a new analysis of how changes in responses to consumer complaints provided by nationwide consumer reporting companies has resulted in less consumer relief.  This analysis shows that in 2021 the big three credit reporting companies together reported relief in response to less than 2% of covered complaints, down from nearly 25% of covered complaints in 2019.

The most common complaint from consumers relates to inaccurate information on their credit and consumer reports.  These inaccuracies can drive up the cost of credit and severely limit the ability of consumers to purchase property or start businesses.

In this report the CFPB found that the three credit reporting agencies often failed to provide substantive responses to consumer complaints.  Federal law requires credit agencies to perform a review of certain complaints sent to them by the CFPB to determine whether all legal obligations have been met with respect to the subject of the complaint.  More than 50% of these complaints did not receive this review and the CFPB expressed a concern that there has been disparate treatment of complaints sent on behalf of consumers by third party representatives.

The report is available here.