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Report: More Than 10,000 Credit Reporting Complaints Filed With CFPB

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Back in October 2012, the Consumer Financial Protection Bureau (CFPB) began accepting complaints against the credit bureaus Equifax, Experian, and TransUnion. In less than a year and a half, the CFPB has collected over 10,000 complaints against the credit bureaus, and a recent report from U.S. PIRG breaks down these complaints, showing which bureau received the most complaints and which specific problems and complaints were the most prevalent.

6,512 complaints, or 65 percent of all filed complaints, were regarding incorrect information on a credit report. 14 percent were regarding a credit bureau’s investigation, followed by 12 percent regarding a consumer’s inability to obtain a credit report or credit score. The bottom two categories were improper use of a credit report, 5 percent, and issues with credit monitoring or identity protection, 4 percent.

Complaints about a particular credit bureau were fairly evenly split amongst Equifax, Experian, and TransUnion. Experian had 38 percent of the complaints followed by Equifax with 33 percent and TransUnion with 25 percent. Additionally, there were 438 complaints, or about 4 percent of the total complaints, that involved banks or lenders such as Citibank or Bank or America.

What stood out in reading through the report was how the credit bureaus responded to consumer complaints. Out of the 10,000 complaints, only 2,988 consumers received some monetary or non-monetary relief, a little less than 30 percent. According to the report, non-monetary relief could mean a wide range of action including correcting errors on a credit report, updating account status information, or providing the consumer with a copy of their annual credit report. It could be that some of these complaints are false and that the credit bureaus don’t need to take action, but it seems suspicious that 6,325 complaints were “closed with explanation” and an additional 48 complaints were “closed without relief or explanation, or untimely response.” How is it possible that more than half of these complaints are closed without any meaningful action taken by the credit bureaus?

This report shows why credit restoration services like My Credit Specialist are vital to consumers. The credit bureaus are unlikely to take action or provide relief to consumers who have had their credit damaged with incorrect or incomplete information. With My Credit Specialist, consumers have an advocate for them and a fighting chance when dealing with the credit bureaus.

For more information on My Credit Specialist’s services, go to www.MyCreditSpecialist.com or give them a call today at 1-866-565-6500. You can also connect with My Credit Specialist online through Facebook, Twitter, and YouTube!

Image courtesy of Stuart Miles / FreeDigitalPhotos.net


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