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Reform on the way at Equifax, Experian and TransUnion?

Posted by Clyde Hutchins | Mar 08, 2017 | 0 Comments

The Consumer Financial Protection Bureau's Report

The Consumer Financial Protection Bureau (CFPB) recently released a report identifying problems with the big three consumer reporting companies (Equifax, Experian and TransUnion). The CFPB found several systemic problems at the companies and it has implemented reforms at all three. The report also address problems with creditors who furnish information to the consumer reporting companies.

The Problems

One of the more pervasive, systemic problems uncovered by the CFPB was the poor standards that the consumer reporting companies had regarding the accuracy of information in consumer credit files. Although it is no surprise to me from what I have seen, the CFPB found that the companies did not sufficiently monitor dispute data regarding furnishers. They failed to review and consider all relevant information submitted by consumers when conducting dispute reinvestigations. They failed to notify furnishers of disputes and they failed to properly describe the results of dispute investigations to consumers. In particular, the companies failed to review and consider the attached documentation and relied wholly on the furnisher of information to investigate the dispute.

Reforms

The CFPB requires the consumer reporting companies to make several reforms. These include better quality control programs, monitoring furnishers, tracking furnisher data, and ensuring that consumer disputes are properly handled with appropriate review of consumer proof documents.

The reforms are a step in the right direction to bring out about better handling of consumer credit report disputes.

About the Author

Clyde Hutchins

Clyde Hutchins is the founder of Harmony Law. Prior to opening Harmony Law, Mr. Hutchins worked in the Wyoming Attorney General's Office for several years where he developed a strong consumer protection enforcement unit. In that position he led over 120 investigations and enforcement actions under the Consumer Protection Act. He worked on numerous joint cases with the Federal Trade Commission and other states, including Colorado, on consumer protection matters. Mr. Hutchins is also a contributing author to Consumer Protection Law Developments, Second Edition. Previous to his work in the Attorney General's Office, Mr. Hutchins was in private practice in Anchorage, Alaska where he was the chief litigator for a firm. Mr. Hutchins represented municipalities on various matters. Mr. Hutchins provided counsel to businesses and investment advisors regarding compliance with securities laws. He was also a bond lawyer and worked on municipal financing matters. Prior to that, Mr. Hutchins practiced civil litigation with a law firm in Cheyenne, Wyoming. Mr. Hutchins devotes his spare time to his family, traveling and enjoying the great outdoors.

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Harmony Law is one of the few law firms in Colorado and Wyoming that focuses on consumer law. Mr. Hutchins is a member of the National Association of Consumer Advocates and state chair for Wyoming. If you have a consumer law issue, please feel free to call 970-488-1857 and speak with Mr. Hutchins.

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