Research is part of a series from the bureau examining consumer credit and the financial marketplace.
11/3/2021 9:00
The Consumer Financial Protection Bureau issued a bulletin Tuesday analyzing credit report disputes, stating that consumers in certain neighborhoods, as well as younger consumers and those with low credit scores, are more likely to have disputes appear on their credit reports, according to a press release. ACA is reviewing the study to determine the data and context for the findings.
The report uses data on auto loan, student loan and credit card accounts opened between 2012 and 2019. It is part of the CFPB’s series of reports on consumer credit trends using a sample of approximately five million de-identified credit records from one of the three nationwide consumer reporting agencies.
The CFPB’s report notes that under the Fair Credit Reporting Act, consumers have a right to file a dispute with credit reporting companies to correct inaccuracies on their reports. FCRA requires consumer reporting companies to process and investigate the disputes in a timely manner, and correct any inaccuracies uncovered by the investigation. According to the report, “these kinds of disputes are common.”
“Once a dispute flag appears, the outcomes for disputed accounts vary markedly across types of credit,” the report concludes.
In a letter submitted to the Senate Committee on Banking, Housing and Urban Affairs, ACA International offered the CFPB its full support whenever it has questions or concerns about an industry practice.
“To that end, we ask that ACA be afforded an opportunity to weigh in and provide another perspective when debt collection issues arise,” CEO Mark Neeb said in the letter. “If there are bad actors engaging in activities that do harm consumers, ACA is eager to support all efforts to weed out such bad actors. On many occasions ACA has applauded the CFPB when it has used its resources to eliminate criminal actors, posing as participants in the debt collection industry. We will continue to do that.”
Read the CFPB’s report, “Disputes on Consumer Credit Reports” here.