Saying consumers must be allowed to dispute inaccuracies on their credit reports, the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) have jointly filed an amicus brief in the case of Ingram v. Experian.
The case involves a lower court ruling that found that furnishers of information to credit reporting agencies may decline to investigate disputes that they deem to be frivolous — a finding that could undercut a key protection given to consumers by the Fair Credit Reporting Act (FCRA), according to a Wednesday (Sept. 14) press release from the FTC.
“The law gives consumers a right to dispute inaccurate information and have their claim investigated,” FTC Bureau of Consumer Protection Director Samuel Levine said in the release. “The FTC-CFPB brief rejects the argument that there are circumstances when furnishers do not have to follow the law.”
Consumers must be able to correct errors on credit reports because such errors can lead to the denial of a loan, housing or a job, Seth Frotman, general counsel of the legal division for the CFPB, wrote in a blog post on the CFPB’s website.
“Consumer reporting companies and furnishers have great power over consumers’ lives, and we’re committed to ensuring that those companies meet their obligations, including by investigating and correcting errors on consumer reports,” Frotman wrote.
As PYMNTS reported Aug. 10, Rep. Maxine Waters has said Equifax and its leaders should be held accountable for selling erroneous credit scores to lenders and should be prevented from selling reports until it proves problems were fixed and controls are in place.
Read more: Rep. Waters Says Hold Equifax, Leadership Accountable for Erroneous Credit Scores
Equifax provided erroneous credit scores for millions of Americans seeking loans over a three-week period in the spring. Waters also pointed to other issues with the credit reporting agency.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More