CFPB fines Equifax $15 million for errors on credit reports
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The Consumer Financial Protection Bureau fined Equifax $15 million over errors tied to consumer credit reports, alleging the company failed to conduct proper investigations of disputed information, the federal watchdog announced Friday.
Equifax is one of three major credit reporting agencies in the U.S., a group that also includes Experian and TransUnion.
«Equifax ignored consumer documents and evidence submitted with disputes, allowed previously deleted inaccuracies to be reinserted into credit reports, provided confusing and conflicting letters to consumers about the results of its investigations, and used flawed software code which led to inaccurate consumer credit scores,» according to the CFPB's order.
Credit reports are a ledger of consumers' borrowing records, such as loan payment history and bankruptcy filings.
The financial consequences of inaccurate information on those reports can be «severe,» said Adam Rust, director of financial services at the Consumer Federation of America, a consumer advocacy group.
«It can change your ability to qualify for a loan, to get a job, to rent an apartment, all kinds of things that are very fundamental to navigating your personal life,» Rust said.
Equifax processes about 765,000 consumer disputes a month, CFPB said.
Its «flawed» dispute policies and technology failures occurred since at least October 2017, «to the detriment of millions of consumers,» according to the CFPB, which alleged Equifax violated the Fair Credit Reporting Act.
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