The Consumer Financial Protection Bureau (CFPB) has been working on fixing data accuracy, repairing dispute processes and cleaning up information from data furnishers.
The director of the CFPB, Richard Cordray, says,
“Since we began our oversight work, the CFPB has been uncovering and correcting problems in the consumer reporting industry, Because of our work, important improvements are being made. Much more work needs to be done but our corrective actions are leading to positive changes that are benefiting consumers all over the country.”
The main assistance to consumers maybe how consumer reporting companies are required to handle disputes. According to the new policies, the consumer reporting agencies must maintain evidence that they accurately handled the disputes and conducted a reasonable investigation. Also part of the dispute process is how consumers are notified of the completion of an investigation. According to the CFPB,
“continued monitoring has shown that the consumer reporting companies have improved processes for investigating disputes and are improving response letters to consumers.”
The Fair Credit Reporting Act, more commonly known as the FCRA, requires an investigation into the consumer dispute and proper noticing to the consumer withing 30 days.
Although these are important milestones in correcting the credit reporting process, it doesn’t help individuals who suffered from bad credit scores due to poor reporting. Geraci Law sees a lot of individuals who suffer from bad credit scores due to inaccurate reporting. Unfortunately, a credit score still determines the cost of financing. The difference in an average credit score and a good credit score means percentage points when financing a house or car.
You can learn more by visiting the CFPB site: https://www.consumerfinance.gov/about-us/newsroom/cfpb-oversight-uncovers-and-corrects-credit-reporting-problems/