The Consumer Financial Protection Bureau (“CFPB”) has engaged in much publicized efforts to gather consumer complaints against financial services providers and make the contents available for all to see. The database has grown, and consumer narratives have been made available to the public in recent months. The CFPB is issuing a monthly report based on trends observed in the consumer complaints for the specific month.
Credit reporting is the focus of the August 2015 complaint report, which is based on the CFPB’s observation that credit reporting complaints showed the greatest percentage increase last month compared to other consumer finance products. The CFPB enumerated three trends culled from the complaints that consumers submitted:
- Incorrect information was the principal complaint submitted by consumers, i.e. incorrect information about accounts, bankruptcy, etc.
- Access to credit reports was cited by consumers as an additional problem. Specifically, accessing one’s credit report was apparently a challenge several consumers experienced.
- Disputing errors with credit reporting agencies was the third problem referenced by consumers. The CFPB pointed to identity theft issues as a particular area of concern.
Although it is important to keep the source of the complaints in mind and the unverified nature of the information, the CFPB is clearly focused on addressing these types of concerns. Your organization should consider reviewing its credit reporting practices to ensure it is addressing these topics fully and defensibly.
Please contact Spilman with any questions.