CFPB Signals Imminent Crackdown on 'Junk Data' in Credit Reports
Source: American Banker
The Consumer Financial Protection Bureau signaled it may soon crack down on the big three credit bureaus for "inconsistent or impossible" data on credit reports that hurt consumers' ability to secure loans, housing, and employment.
Impossible or inconsistent data can range from a notation on a consumer's credit report that the person is dead despite the fact their other accounts are marked as current and paid off, or a report that they opened a line of credit before they turned 18 or even before they were born.
The CFPB calls such errors "junk data," much like the "junk fee" moniker it has for overdraft fees and insufficient fund penalties. Errors on credit reports are the single most common cause for complaint when consumers contact the CFPB, according to the agency's announcement of an advisory opinion on the matter, and junk data is a particularly egregious source of those complaints.
But it's not just that the errors are common. The credit bureaus should easily be able to flag such impossible or inconsistent information without the consumer needing to take action, according to the CFPB.
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