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Category Archives: Credit Reports

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CFPB Issues Report on the Use of Remittance Histories in Credit Scoring

Posted in Credit Reports, Remittance Transfers

On July 3rd, the CFPB released a Report on the Use of Remittance Histories in Credit Scoring (the “Report”). Section 1073(e) of the Dodd-Frank Wall Street Reform and Consumer Protection Act required the CFPB Director to study the feasibility of and impediments to using remittance transfer information (i.e., information regarding electronic fund transfers made by… More >

Another state AG files lawsuit using Dodd-Frank authority

Posted in Credit Reports, UDAAP

A lawsuit filed in May 2014 by the Mississippi Attorney General against Experian in Mississippi state court alleging widespread federal and state law violations was removed last week by Experian to a federal district court in Mississippi.  While the complaint’s sensational allegations of Fair Credit Reporting Act (FCRA) violations by Experian have received considerable attention, it… More >

CFPB highlights unlawful practices by consumer reporting agencies, debt collectors and payday lenders

Posted in CFPB Exams, Credit Reports, Debt Collection, Fair Lending, Payday Lending

In its Spring 2014 Supervisory Highlights report issued yesterday, the CFPB highlighted deficiencies and violations it found during examinations of consumer reporting agencies (CRAs), debt collectors and payday lenders.  The CFPB has authority to examine entities that qualify as “larger participants” under the final rules it adopted to supervise participants in the debt collection and… More >

CFPB issues report on how medical debt impacts credit scores

Posted in Credit Reports

According to a report issued yesterday by the CFPB entitled “Data point: Medical debt and credit scores,” credit scoring models may be overly penalizing consumers with medical debts that go into collection by producing credit scores that underestimate such consumers’ creditworthiness.  To conduct its analysis, the CFPB used data in its Consumer Credit Panel (CCP). … More >

FTC and EEOC issue guidance on background checks

Posted in Credit Reports

A new joint publication of the Federal Trade Commission and Equal Employment Opportunity Commission serves as a reminder to employers of the risks that come with the use of background information when making personnel decisions, including hiring, retention, promotion, and reassignment.  Titled “Background Checks: What Employers Need to Know,” the publication seeks to guide employers… More >

Credit reporting remains a CFPB top priority

Posted in Credit Reports, Richard Cordray

Credit reporting was the first industry targeted by the CFPB using its “larger participant” supervisory authority. As demonstrated by the CFPB’s actions last week, credit reporting continues to be a high CFPB priority and is likely to remain as such for the foreseeable future. On February 27, CFPB Director Richard Cordray delivered remarks before a… More >

CFPB highlights furnishers’ duty under the FCRA to investigate disputes

Posted in Credit Reports, Debt Collection

The CFPB recently issued a bulletin highlighting the obligations of debt buyers, debt collectors, and others who furnish information to credit reporting agencies (CRAs) under the Fair Credit Reporting Act (FCRA). In particular, the CFPB is concerned that furnishers may direct the CRAs to simply delete disputed items from consumer reports without conducting a proper… More >

CFPB files amicus brief in FCRA case

Posted in Credit Reports

The CFPB recently filed its first amicus brief in a Fair Credit Reporting Act (FCRA) case.  This brief, like the amicus brief the CFPB filed in August 2013 in the Seventh Circuit in a Fair Debt Collection Practices Act case, was filed jointly with the FTC.  The CFPB filed the latest brief in Moran v. The… More >

Director Cordray gives wide-ranging testimony to House Financial Services Committee

Posted in Arbitration, CFPB Enforcement, CFPB General, CFPB Rulemaking, Credit Reports

Although the House Financial Service Committee’s hearing last Thursday was entitled “The Semi-Annual Report of the Consumer Financial Protection Bureau,” the contents of the report received little mention from committee members.  Instead, committee members questioned Director Cordray, the sole hearing witness, on a wide range of topics.  Highlights include the following: The CFPB’s data collection… More >

CFPB issues warning on furnisher’s duty to investigate disputes

Posted in Credit Reports

The CFPB has issued a bulletin to companies that furnish information to consumer reporting agencies (CRA) reminding them of their obligation under the Fair Credit Reporting Act (FCRA) to investigate consumer disputes forwarded by a CRA and “review all relevant information” relating to the dispute.  In the bulletin, the CFPB warns that it will take appropriate… More >

CFPB official to appear at Senate Commerce Committee hearing on credit reports

Posted in Credit Reports

On May 7, the Senate Commerce Committee’s Subcommittee on Consumer Protection, Product Safety, and Insurance will hold a hearing titled “Credit Reports: What Accuracy and Errors Mean for Consumers.”  The first witness panel consists of Corey Stone, the CFPB’s Assistant Director for Deposits, Cash, Collections, and Reporting Markets, and Maneesha Mithal, the FTC’s Associate Director for… More >

CFPB issues paper on credit reporting

Posted in Credit Reports, Debt Collection

The CFPB has issued a paper that describes the infrastructure and processes used by Equifax, Experian and TransUnion, the three largest nationwide consumer reporting agencies (NCRAs), to collect, compile and report information about consumers.  The paper is based on research conducted by the CFPB’s Office of Deposits, Cash, Collections and Reporting Markets.  Among the topics… More >

CFPB issues bulletin to specialty consumer reporting agencies on free credit reports and sends warnings

Posted in Credit Reports

The CFPB has issued a bulletin to nationwide specialty reporting agencies to remind them of their obligation under the Fair Credit Reporting Act to establish a streamlined process for requests from consumers for free annual credit reports.  These specialty companies typically collect and provide specific types of information on consumers, such as information on a… More >

New development with FCRA-required forms

Posted in CFPB Rulemaking, Credit Reports

With the January 1, 2013 deadline for using the new CFPB model FCRA forms on the horizon, the CFPB apparently took another look at those forms and realized that they contained a few glitches.  On November 14, the CFPB published a notice in the Federal Register correcting various typos and technical errors, effective immediately.  The forms in… More >

CFPB now taking credit report complaints

Posted in Credit Reports

The CFPB has announced that its complaint system has begun taking complaints about credit reports.  The issues a consumer can select to describe his or her complaint are: (1) incorrect information on the consumer’s credit report, (2) a consumer reporting agency’s investigation, (3) improper use of a credit report, (4) inability to obtain a credit report… More >

CFPB exams are coming for credit bureaus and consumer reporting agencies

Posted in CFPB Exams, CFPB Rulemaking, Credit Reports

With the release of its examination procedures for credit  bureaus and consumer reporting agencies, the CFPB is now one step closer to scheduling examinations for the 30 largest companies that it estimates account for about 94 percent of the market (measured by annual receipts). These are the companies it has deemed, by rule effective September… More >

Cordray outlines initial supervision priorities for credit reporting agencies

Posted in Credit Reports

During the CFPB’s field hearing today in Detroit, Michigan, Director Cordray was clear in his opening remarks about what the Bureau sees as its supervisory priorities once it begins examining credit reporting agencies (CRAs) starting in September.  Cordray outlined three priorities: 1)         Ensuring the accuracy of information received by CRAs.  Although Cordray acknowledged that accuracy… More >

Are credit bureaus in the crosshairs?

Posted in Credit Reports

The CFPB will hold a public field hearing and panel discussion on credit reporting on July 16 at the Detroit Institute of Arts. The hearing appears to coincide with the CFPB’s anticipated release of the final “larger participant” rule, which must be issued no later than July 21. Earlier this year, the CFPB issued a… More >

CFPB joins DOJ brief defending constitutionality of FCRA

Posted in Credit Reports

The CFPB’s participation in a memorandum brief filed by the Department of Justice in support of the constitutionality of a provision of the Fair Credit Reporting Act is the most recent example of the CFPB’s activist approach. As we reported, the CFPB previously announced that it’s committed to filing amicus briefs in cases involving federal… More >

Dodd-Frank clarifies limited reach of FCRA

Posted in CFPB General, Credit Reports

Dodd-Frank’s definition of “financial product or service” clarifies that those offering public records information retrieval or fraud prevention services are not only outside the reach of the Bureau, but also not subject to the FCRA. Yesterday, Darryl May and I filed a memorandum of law in Fuges v. Southwest Financial Services, Ltd., No 09-699 (E.D…. More >

Credit score report released

Posted in Credit Reports

Two days before its July 21 debut, the CFPB released a report on credit scores  that describes the industry and credit scoring process, examines the ways credit scores are obtained and used, and discusses the differences between scores obtained by consumers and creditors..  Dodd-Frank required the CFPB to study those differences and whether they disadvantage… More >