Experian Deceived Consumers, Fined $3 Million

Today, the Consumer Financial Protection Bureau fined Experian $3 million for deceiving consumers in marketing it own credit scores. Experian is one of the credit reporting agencies that created its own credit scoring, sometimes known as fako scores. They are fake because lenders do not use them in deciding whether to give consumers credit. Creditors generally rely on FICO scores, not the agencies' own scores. The CFPB said that from 2012 through 2014 Experian falsely claimed the credit scores it sold to consumers were used by lenders. The CFPB ordered Experian to truthfully represent how its credit scores are used...

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Big Three CRAs Will Remove Many Tax Liens & Judgments from Credit Reports

Acting through their trade association, Experian, Equifax and TransUnion announced they will remove many tax liens and civil judgments from credit reports starting July 1, 2017. This will improve credit scores of millions of people. The data will disappear if it does not include a complete list of at least three data points: a person’s name, address and either a social security number or date of birth. Many liens and most judgments don’t include all three or four. This change will apply to new tax-lien and judgments added to credit reports as well as existing data on the reports. In addition, if public...

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New CFPB Report on Problems at Experian, Equifax and TransUnion

The Consumer Financial Protection Bureau's has found numerous problems and deficiencies during its examinations of Experian, Equifax and TransUnion. The CFPB is directing certain reforms. Problems Uncovered at Experian, Equifax and TransUnion As CFPB Director Richard Cordray characterized it, "Standards on the accuracy of information in consumer credit files were distinctly sub-par." Some of the problems that the CFPB documented in its report include: No programs to test the accuracy of credit reports that the CRCs produced, prompting Director Cordray to remark"we were surprised to find that [the CRCs’] quality control systems were either rudimentary or virtually non-existent." Deficiencies regarding the...

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CFPB Reports Consumers Continue to Struggle to Get Credit Reports Corrected

Today the Consumer Financial Protection Bureau (CFPB) released a report that  consumers continue to struggle to resolve errors on their credit reports Most consumers' complaints fell in the following categories: Consumers report problems disputing complaints on their credit reports: Complaints submitted to the Bureau indicate that consumers continue to experience difficulties when submitting disputes to credit reporting companies. Consumers complain about inaccurate information on credit reports: Consumers submit a high number of complaints about inaccurate personal information on their reports. Frequently consumers state that incorrect or unrecognized names and addresses appear on their reports. Consumers report confusion about credit scoring:...

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New Credit Score Models May Help Consumers with Little Credit History

The NY Times Money Adviser has a report on new credit scoring models that rely on such data as rent and cellphone payments not used in traditional score models. The idea is to help lenders find consumers who are credit-worthy who may not have established credit histories. About 45 million Americans lack traditional credit files. These consumers may have never had a credit card or they may have had financial difficulties and stopped using credit resulting in spotty credit histories.  Many lenders will not lend to people with credit scores of under 620; alternative data might improve their scores. FICO recently...

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