On April 8, 2024, the Consumer Financial Protection Bureau (CFPB) – a government agency that implements and enforces Federal consumer financial law – published the Supervisory Highlights of Spring 2024 to share key findings from recent examinations about continuing accuracy problems in the credit reporting system, according to a news release from the CFPB.
The CFPB found consumer reporting companies failed to ensure the accuracy of credit reports, including by failing to exclude information resulting from alleged identity theft or human trafficking. The CFPB also found furnishers – companies that provide information to consumer reporting companies – failed to correct false or fraudulent information sent to those companies.
The CFPB continues to prioritize examinations of consumer reporting companies and furnishers. CFPB examiners have found failures by these companies to follow a rule implemented in June 2022 that requires credit reporting companies to block adverse information that resulted from human trafficking from credit reports. Specifically, the Supervisory Highlights found:
- Consumer reporting companies failed to block or remove information related to identity theft and human trafficking.
- Consumer reporting companies accepted information from unreliable furnishers.
- Furnishers provided information to consumer reporting companies they knew was false.
- Furnishers did not follow requirements for dispute investigations and identity theft.
In response to the CFPB’s findings, the consumer reporting companies and furnishers involved are taking corrective actions. This is the 32nd Edition of Supervisory Highlights. The findings in this report cover select examinations in connection with credit reporting and furnishing that were completed from April 1, 2023, through December 31, 2023.
“Consumer reporting companies and furnishers play a crucial role in ensuring the accuracy and integrity of information contained in credit reports. Inaccurate or false information can infect credit reports because of reporting failures by consumer reporting companies or by those who furnish information, including banks, loan servicers, and debt collectors,” the CFPB said.
“Survivors of human trafficking and victims of identity theft have the right to block information improperly placed on their credit report,” CFPB Director Rohit Chopra commented in the news release from the CFPB. “We will be taking additional steps to ensure that companies correct false and inaccurate information on credit reports.”
ClearStar is a global Human Resources technology company specializing in background checks, drug testing, and occupational health screening. ClearStar also offers credit history searches when allowed by applicable law to help employers make compliant and informed hiring decisions. To learn more about ClearStar, please contact us.
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Thomas Ahearn - Digital Content Editor
Thomas Ahearn is a Digital Content Editor at ClearStar, a leading Human Resources technology company specializing in background checks, drug testing, and occupational health screening. He writes about a variety of topics in the background screening industry including Artificial Intelligence (AI), "Ban the Box," class action lawsuits, credit reports, criminal records, drug testing, Equal Employment Opportunity Commission (EEOC), Fair Credit Reporting Act (FCRA), identity theft, privacy, social media screening, and workplace violence.
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