Credit reporting complaints have doubled since 2018

Consumer complaints about credit reporting more than doubled from 2018 to 2021, according to the Consumer Financial Protection Bureau’s (CFPB) complaint database. Credit reporting is by far the most common subject of complaints received by the federal agency.

Credit reporting remains a sore point for consumers

Accurate credit reporting is critical to consumers. Negative information that is either inaccurate or fraudulent can have a significant impact on a consumer’s credit score and ability to obtain credit when they need it.

In reviewing the CFPB’s complaint database, Consumer Reports found that the number of complaints related to credit reporting doubled from 2018 to 2021, and they are on track to set a new record this year.

What’s more, complaints about credit reporting far outweigh complaints about products and services offered by financial institutions. Through the first six months of 2022, credit reporting complaints made up close to 75% of all complaints submitted to the federal agency.

The CFPB addressed this issue in January when it argued that the three national credit bureaus, Experian, Equifax and TransUnion, may be in violation of the Fair Credit Reporting Act for routinely failing to address consumer complaints about credit report errors.

And in March, the federal agency highlighted inaccuracies in medical debt reporting and promised to take action against the credit bureaus, as well as those who provide the data to them, if inaccuracies are not corrected.

But Consumer Reports is taking things a step further, calling on all three credit bureaus to not only ensure credit reports are accurate, but also make credit report access permanently free, so consumers can more easily monitor their credit files and spot errors before they get out. by hand.

Experian gives consumers access to both their Experian credit report and FICO Score anytime for free, and you can also access your TransUnion credit report for free at any time. However, Equifax limits its free credit reports to six per year.

By law, consumers can also access their credit reports from each of the credit bureaus for free weekly through AnnualCreditReport.com, but this will revert to once every 12 months in 2023.

Because credit reporting errors can have such a big impact on your credit score, it’s critical that you take the time to review your credit reports as often as possible and dispute incorrect information directly with the credit bureaus.