20% of consumers have error on credit report, FTC finds
WASHINGTON — One in five consumers had an error in a credit report issued by a major agency, according to a government study released Monday.
The Federal Trade Commission study said that 5 percent of the consumers identified errors in their reports that could lead to them paying more for mortgages, auto loans or other financial products.
The study looked at reports for 1,001 consumers issued by the three major agencies — Equifax, Experian and TransUnion. The FTC hired researchers to help consumers identify potential errors.
The study closely matches the results of a yearlong investigation by The Columbus Dispatch. The report said that thousands of consumers were denied loans because of errors.
The FTC says the findings underline the importance of consumers checking their credit reports.
Consumers are entitled to a free copy of their credit report each year from each of the three reporting agencies.
The FTC study also found that 20 percent of consumers had an error that was corrected by a reporting agency after the consumer disputed it. About 10 percent of consumers had their credit score changed after a reporting agency corrected errors in their reports.
The Consumer Data Industry Association, which represents the credit reporting agencies and other data companies, said the FTC study showed that the proportion of credit reports with errors that could increase the rates consumers would pay was small.
The study confirmed “that credit reports are highly accurate and play a critical role in facilitating access to fair and affordable consumer credit,” the association said in a statement.
In September, the federal Consumer Financial Protection Bureau gained the authority to write and enforce rules for the credit reporting industry.
and to monitor the compliance of the three agencies. Prior to that, the reporting agencies weren't subject to ongoing monitoring by federal examiners.
The CFPB hasn't yet taken any public action against the agencies. However, it is accepting complaints from consumers who discover incorrect information on their reports or have trouble getting mistakes corrected. The agencies have 15 days to respond to the complaints with a plan for fixing the problem; consumers can dispute that response.
By contrast, the FTC can only take action if there is an earlier indication of wrongdoing. It cannot demand information from or investigate companies that appear to be following the law.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- DQE Communication inks data deal with Iron Mountain
- Government approves compromise on Corbett’s alternative Medicaid plan
- U-PARC houses companies ranging from innovative to traditional
- States clear way for startups to use crowdfunding
- Students walk shop class path to excellence
- Deported migrants find home at call centers
- UPMC to help China build private medical center to boost public care there
- Compelling cases exist for cashing out, staying in as stock market soars
- Gas drilling company withdraws application for forced pooling in Western Pennsylvania
- Healthy PA expands number of recipients but cuts benefits
- Young adults drive home rental trend in Western Pennsylvania