The FTC, as required by FACTA, released a new study today of credit report accuracy which found that 26% of participants had at least one error in their credit files. Big shock. Even the CDIA, the trade organization for the national credit bureaus, admits that at least 19% of consumer reports have erroneous information.
It would have been awesome if FACTA had resulted in something better than requiring the FTC to issue reports telling us what we already know.
In a surprise announcement, the Consumer Finance Protection Bureau, the newly created federal agency responsible for protecting consumer rights, confirmed that it will begin direct oversight of credit reporting agencies (including Experian, Equifax and Trans Union) on September 30th. Although there are a bevy of laws in place pertaining to credit data, this represents the first time that the credit bureaus themselves will face government supervision.
Here is the official announcement.
It’s about time. I wonder how the credit bureaus feel about someone checking their credit.
I hope the result of this move will be credit bureaus that are more responsive to the law and consumers, especially those struggling to have errors corrected, instead of the arrogant, unresponsive gatekeepers they often are today.