On January 17, 2025, the CFPB issued a consent order against a large consumer reporting agency for failing to properly investigate consumer disputes concerning inaccurate information on consumers’ credit reports. The CFPB alleges the agency violated the Fair Credit Reporting Act (FCRA), by relying on ineffective processes and failing to thoroughly investigate disputes. 

The CFPB alleges the agency failed to implement reasonable procedures to ensure the accuracy of consumer reports. As a result, inaccurate credit information was provided to lenders, affecting consumers’ ability to obtain loans or credit at favorable terms. The CFPB also alleged the agency failed to reasonably investigate consumer disputes, disregarded relevant information, and provided inaccurate investigation results to consumers. The Bureau asserts that these actions harmed consumers by creating unnecessary obstacles and delays in resolving credit errors.

To address these alleged violations, the CFPB issued an order requiring the credit reporting agency to:

• Pay a $15 Million Civil Penalty. The penalty will be added to the CFPB’s Civil Penalty Fund, which is used to provide financial relief to harmed consumers. 
• Improve Dispute Investigation Processes. The agency will be required to implement changes to ensure that consumer disputes are thoroughly investigated and resolved in accordance with the FCRA. The changes include improving staff training, enhancing quality control measures, and implementing systems to prevent the reinstatement of previously corrected errors.

Putting It Into Practice: This underscores CFPB’s commitment to tackling FCRA violations, which has ratcheted up during the final days of the current administration (previously discussed here, here, and here). As Chopra’s term as Director of the CFPB wraps up, it will be worth monitoring how the incoming administration approaches the latest salvo of CFPB enforcement actions.

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