WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Experian, one of the largest consumer reporting agencies in the United States, alleging repeated violations of federal laws governing the accuracy of credit reports and the handling of consumer disputes.
The CFPB claims Experian failed to properly investigate disputes filed by consumers, resulting in incorrect information appearing on credit reports. Such inaccuracies, the agency alleges, have far-reaching consequences, potentially hindering access to loans, jobs, and housing opportunities. Experian allegedly relied on flawed procedures, failing to adequately convey dispute details to furnishers of the information and often restoring erroneous data previously removed after disputes.
“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.
The agency accuses Experian of ignoring its obligations under the Fair Credit Reporting Act (FCRA), which mandates thorough investigations of disputes and prevents the reinsertion of previously deleted incorrect information without explanation. The CFPB contends Experian’s inaction left many consumers vulnerable to financial harm and uncertainty about their creditworthiness.
Experian is a subsidiary of Ireland-based Experian plc and operates as a major data provider, compiling credit reports from financial institutions and debt collectors. These reports are widely used by businesses and lenders to assess financial risk.
The CFPB’s lawsuit seeks to stop Experian’s alleged illegal practices, secure restitution for impacted consumers, and impose civil penalties, with funds directed to the CFPB’s victims relief program. This case aims to hold Experian accountable for its actions and prevent similar harm to consumers in the future.
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