Consumer reporting companies hold a responsibility to rectify inaccuracies

The consumer reporting system holds vast profiles on millions of individuals, compiling data on financial standings and bill payment histories. These companies then sell this information to entities making crucial decisions regarding employment, credit, and more. Unfortunately, some companies within this system have attempted to circumvent basic requirements aimed at ensuring data accuracy. In response, the Consumer Financial Protection Bureau (CFPB) has undertaken measures to challenge such practices. These include instances where companies refuse to investigate consumer disputes, particularly if they label them as "legal" issues, or insist on maintaining disputed information that cannot be verified.

Congress established the Fair Credit Reporting Act (FCRA) over fifty years ago to address concerns regarding consumer reporting companies. The CFPB serves as the primary enforcer of this legislation and is dedicated to safeguarding individuals from companies within the consumer reporting system that violate the law. Consequently, the Federal Trade Commission (FTC), which also enforces the FCRA, have jointly filed an amicus brief in the U.S. Court of Appeals for the Eleventh Circuit, addressing yet another erroneous argument from a company within the consumer reporting system.

The FCRA mandates that consumer reporting companies investigate when notified of incorrect or incomplete information in an individual's file. However, Experian Information Solutions has argued in court that this requirement does not extend to personal identifying information, such as name, address, or Social Security number. The FTC firmly oppose this stance and have filed an amicus brief to ensure individuals can hold consumer reporting companies accountable for violating the law in this regard.

In a specific case, a consumer filed three disputes with Experian, highlighting numerous errors in her file, including misspelled maiden name, incorrect addresses, and an inaccurate Social Security number. Despite repeated complaints, Experian directed her to contact the sources of the erroneous information without disclosing those sources. Subsequently, the consumer sued Experian, leading to a court ruling against Experian's argument. However, the court also found Experian not liable due to perceived ambiguity in the law.

The decision is under appeal, FTC's amicus brief underscores the necessity for consumer reporting companies to investigate disputed information, including personal identifying details. Experian's violation of the law is evident, and it should be held accountable for its actions. Individuals deserve transparency and accountability from companies handling sensitive data, rather than attempts to evade responsibilities. 

The case, Nelson v. Experian Information Solutions, Inc., is currently before the 11th Circuit Court.