On January 7, 2025, the Consumer Financial Protection Bureau (“CFPB”) filed a complaint against a nationwide consumer reporting agency (“Agency”) under the Fair Credit Reporting Act (“FCRA”) and the Consumer Financial Protection Act of 2010 (“CFPA”). The CFPB claims that the Agency inadequately reinvestigated consumer disputes that challenged the information found in consumer reports.
The FCRA mandates that Credit Reporting Agencies (“CRAs”) use reasonable procedures to ensure the accuracy of the information contained in consumer reports and provides a mechanism for consumer disputes. Following a consumer dispute, CRAs must conduct a “reasonable reinvestigation” and report the results back to the consumer. The CFPB alleges that the Agency fell short on this duty to reinvestigate in the following ways: 1) by failing to provide the relevant information to furnishers, 2) by providing inadequate or incomplete information to consumers regarding the dispute reinvestigation results, and 3) by failing to have reasonable procedures in place to ensure the completeness and accuracy of the information found in consumer files. According to the complaint, these actions would also violate the CFPA’s prohibition on unfair acts or practices.
The complaint requests that the Court enjoin the Agency from committing further violations of these acts, order the Agency to pay redress to harmed consumers and disgorge profits, and impose civil money penalties.
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