May 25, 2022

Volume XII, Number 145

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May 24, 2022

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May 23, 2022

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CFPB Provides Guidance on How Consumers Can Obtain and Dispute Inaccuracies in Credit Reports

On January 27, the CFPB released a report directed to consumers about obtaining information in their consumer reports and disputing suspected inaccuracies in these reports with companies as needed.  The CFPB notes that “[a]s families recover from the financial impact of the COVID-19 pandemic, seeking new jobs or places to live, errors in these databases can severely harm their financial lives.”

Among other things, the report highlights the following:

  • Types of business that can access consumer reports;

  • Adverse actions;

  • How to request a report; and

  • Knowing when to check a consumer credit report.

The CFPB previously highlighted problems that consumers reported about the three nationwide reporting companies not adequately responding to consumer complaints about errors (we covered this news in a previous Consumer Finance and Fintech blog post here).

CFPB Director Rohit Chopra stated that, “[m]any companies assemble and sell detailed dossiers about us that can determine whether we can get a loan, job, or an apartment,” and that Americans should be informed regarding the “limited legal rights they can use to keep tabs on these surveillance companies and hold them accountable when they violate the law.”

Putting It Into Practice:  The report provides information regarding obtaining credit reports free of charge and how people can file reports disputing inaccuracies or potential violations of the Fair Credit Reporting Act (“FCRA”).  While this latest report is aimed at supporting consumers impacted by inaccurate credit reporting, entities that report information about consumers to consumer reporting agencies should ensure they are meeting their specific FCRA timelines and notification requirements during a dispute process, otherwise these furnishers should be prepared to face scrutiny from the CFPB and consumers.

Copyright © 2022, Sheppard Mullin Richter & Hampton LLP.National Law Review, Volume XII, Number 28
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About this Author

Moorari Shah Bankruptcy Lawyer Sheppard Mullin Law Firm
Partner

Moorari Shah is a partner in the Finance and Bankruptcy Practice Group in the firm's Los Angeles and San Francisco offices. 

Areas of Practice

Moorari combines deep in-house and law firm experience to deliver practical, business-minded legal advice. He represents banks, fintechs, mortgage companies, auto lenders, and other nonbank institutions in transactional, licensing, regulatory compliance, and government enforcement matters covering mergers and acquisitions, consumer and commercial lending, equipment finance and leasing, and supervisory examinations,...

213-617-4171
A.J. S. Dhaliwal Bankruptcy Attorney Sheppard Mullin Washington DC
Associate

A.J. is an associate in the Finance and Bankruptcy Practice Group in the firm's Washington, D.C. office. 

A.J. has over a decade of experience helping banks, non-bank financial institutions, and other companies providing financial products and services in a wide range of matters including government enforcement actions, civil litigation, regulatory examinations, and internal investigations.

With a diversified regulatory, compliance, and enforcement background, A.J. counsels financial institutions in matters involving...

202-747-2323
 Alexandria G. Lattner Finance Bankruptcy Attorney Los Angeles Sheppard, Mullin, Richter & Hampton LLP
Associate

Alexandria Lattner is an associate in the Finance & Bankruptcy Practice Group in the firm's Los Angeles office. 

Areas of Practice

Alexandria represents corporate chapter 11 debtors, secured creditors, and unsecured creditors in bankruptcy proceedings.  She also has significant experience in commercial litigation and appellate matters. 

213-617-4259
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