On March 2, 2017 the Consumer Financial Protection Bureau (“CFPB”) released a “special edition” supervisory report that focused on improvements made in the credit reporting industry since the CFPB began supervising the industry in 2012. This report follows on the heels of the monthly complaints report the CFPB released on March 1, 2017, which also focused on credit reporting. Among other things, the CFPB reported improvements in the following areas of credit reporting:
- Data accuracy: CFPB examiners have found that consumer reporting agencies, in response to prior supervisory findings and direction, have instituted quality control programs to ensure data accuracy. The companies are also taking better corrective actions when mistakes are identified, and making system improvements to prevent repeating mistakes.
- Dispute processes: CFPB examiners had discovered issues related to one or more consumer reporting companies’ dispute processes, including not sending required notifications to consumers about dispute results and not considering documentation provided by the consumer on a dispute. The CFPB reports that, after it directed these companies to improve their dispute investigation systems, they have improved processes for investigating disputes and are improving response letters to consumers.
- Furnishing information: After directing that furnishers take steps to address issues that examiners discovered regarding the accuracy of information provided to consumer reporting companies, the CFPB reports that several furnishers have dedicated more resources to ensuring greater integrity of information. These efforts include better investigations and handling of disputes, notifying consumers of results, and taking corrective action when inaccurate information has been supplied. The CFPB maintains, however, that its examiners continue to find numerous violations at one or more furnishers, particularly relating to deposit account information.