The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against the consumer reporting agency Experian, alleging that if failed to properly investigate consumer disputes.
Experian, based in Costa Mesa, California, is one of the nation’s three largest credit reporting agencies and is a subsidiary of Experian plc (LSE:EXPN, OTCMKTS: EXPGY), a global data broker and analytics company headquartered in Ireland. The CFPB claims Experian violated the Fair Credit Reporting Act’s requirements for handling consumer disputes. Among the problems raised by the CFPB were alleged sham investigations that failed to properly address consumer disputes, the improper reinsertion of inaccurate information on consumer reports, faulty dispute intake procedures and a failure to provide furnishers with consumer-submitted documentation.
“When consumers disputed errors on their credit reports, Experian conducted sham investigations rather than properly reviewing the disputes as required by federal law,” said CFPB Director Rohit Chopra. “Credit reporting errors can have serious consequences for a family’s finances, and it is critical that credit reporting giants follow the law.”
Experian did not immediately comment on the CFPB’s lawsuit.
