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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. Mr. Hutchins started his career as a lawyer in Cheyenne, Wyoming. First gaining experience as a law clerk for the district court judges, Mr. Hutchins entered private practice with a Cheyenne firm focused on civil litigation, business law and some general practice law. Later, Mr. Hutchins went to Alaska, where he was the chief litigator for a firm that engaged in bond law, corporate law, securities law, and the broad reach of municipal law. Mr. Hutchins returned to Cheyenne to represent the State of Wyoming in the national tobacco arbitration. While in that position, he developed the consumer protection unit for the Wyoming Attorney General's Office. He led over 120 investigations and enforcement actions in Wyoming and worked on numerous joint cases with the Federal Trade Commission and other states, including Colorado. Mr. Hutchins relocated to Colorado in 2016 and founded Harmony Law. Mr. Hutchins has established Harmony Law in three principal areas of law. First, it is a general practice firm in the areas of business law, estate planning and family law. Secondly, it is a civil litigation firm, practicing law in state and federal courts throughout Wyoming and Colorado. Finally, it is one of the few firms in Wyoming or Colorado that focuses on consumer protection law.

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