CFPB: Credit Reporting Companies Must Disclose Source of Consumer Data

The Consumer Financial Protection Bureau (CFPB) filed an amicus brief Thursday (Jan. 16), saying it aims to ensure that credit reporting companies are held accountable for “junk data” and don’t secure “loopholes” in the law that prevent that accountability.

The regulator filed the amicus brief in a case in which TransUnion has argued that it doesn’t have to provide consumers with the source of some of the information in their credit reports, including names, phone numbers, Social Security numbers and addresses, CFPB General Counsel Seth Frotman wrote in a Thursday blog post.

“Our amicus brief explains that this is incorrect,” Frotman wrote. “Congress clearly required consumer reporting companies to disclose the source of phone numbers and similar information, and courts have found that the law’s protections apply to information in credit reports, which plainly includes consumers’ personal identifying information.”

TransUnion did not immediately reply to PYMNTS’ request for comment.

In the case against the credit reporting company, a consumer claims he was subjected to debt collection calls after TransUnion listed his phone number in someone else’s credit report, as well as including a phone number that didn’t belong to him in his credit report and failing to provide him with the source of the incorrect phone number, according to the blog post.

“Without access to this information, consumers are unable to find out who may be reporting wrong information about them,” Frotman wrote. “And when people’s data gets mixed up with someone else’s, it’s not just a minor inconvenience but a problem that can have far reaching consequences for their financial lives.”

The filing of this amicus brief came about a week after the CFPB sued consumer reporting agency Experian, alleging that the company unlawfully failed to properly investigate consumer disputes and included incorrect information on credit reports.

In that case, the regulator alleged that Experian’s practices violated Fair Credit Reporting Act (FCRA) requirements and the Consumer Financial Protection Act’s prohibition on unfair acts or practices.

Reached by PYMNTS, Experian said in an emailed statement that the lawsuit is without merit and that the company will defend its legal position vigorously.