Annual report of credit and consumer reporting complaints

CONSUMER FINANCIAL PROTECTION BUREAU | JANUARY 2022

Annual report of credit and

consumer reporting

complaints

An analysis of complaint responses by

Equifax, Experian, and TransUnion

 
Table of Contents 
Table of Contents .............................................................................................................2 
Executive Summary .........................................................................................................3 
 Introduction ................................................................................................................5 
 Background ..............................................................................................................10 
1  Credit reporting overview........................................................................ 10 
2  Dispute process .........................................................................................12 
3  CFPB complaint process.......................................................................... 14 
4  Credit monitoring, credit repair, and credit education .......................... 16 
 Complaint data .........................................................................................................21 
1  Factors underlying complaint volume increases .................................... 24 
2  Consumer issues and harms.................................................................... 29 
 Fair Credit Reporting Act Section 611(e) .............................................................39 
1  The Fair and Accurate Credit Transactions Act ..................................... 39 
2  Transmission of complaints and data collection ....................................40 
 NCRA complaint response analysis .....................................................................44 
1  Previous dispute attempts ....................................................................... 45 
2  NCRAs’ changes to complaint responses ................................................46 
 Conclusion................................................................................................................55 
 
 

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Executive Summary

▪ Pursuant to Section 611(e)(5) of the Fair Credit Reporting Act (FCRA), this report

summarizes information gathered by the Consumer Financial Protection Bureau (CFPB)

regarding certain consumer complaints transmitted by the CFPB to the three largest

nationwide consumer reporting agencies (NCRAs)—Equifax, Experian, and TransUnion.

▪ The CFPB historically has satisfied its annual reporting obligation by including information

gathered pursuant to FCRA Section 611(e) in its Consumer Response Annual Report. This

year, however, increased complaint volume about the NCRAs and the NCRAs’ concurrent

changes in response to those complaints led the CFPB to publish this independent report.

▪ From January 2020 to September 2021, the CFPB received more than 800,000 credit or

consumer reporting complaints. Of these complaints, more than 700,000 were submitted

about Equifax, Experian, or TransUnion. Complaints submitted about the NCRAs accounted

for more than 50% of all complaints received by the CFPB in 2020 and more than 60% in

2021. The CFPB’s analysis shows that consumers are submitting more complaints in each

complaint session and are increasingly returning to the CFPB’s complaint process.

▪ In their complaints to the CFPB, consumers describe harms stemming from their failed

attempts to correct incomplete and inaccurate information on their credit reports:

□ Consumers are caught in an automated system where they are unable to

have their problem addressed. Consumers described how they attempted to

dispute inaccurate information with the NCRAs but were unsuccessful. Attempts to

have their problems addressed timely appear especially important to consumers who

are making large financial transactions, such as buying a house, or applying for

housing or employment.

□ Consumers waste time, energy, and money to try to correct their reports.

Consumers described the burden associated with attempting to correct inaccurate

information, which can be compounded when they are managing other personal

issues. Some consumers reported discovering that debts (such as medical bills) had

been reported to their credit report without their knowledge. Consumers described

4 BUREAU OF CONSUMER FINANCIAL PROTECTION

being exasperated by the dispute process and some consumers described paying bills

they did not think they owed because of concerns about the effect of the debt on their

credit report and credit score.

□ Consumers are caught between furnishers and the NCRAs. Consumers

described attempting to dispute incorrect information with both data furnishers and

the NCRAs. Consumers said that when furnishers and the NCRAs point fingers at

one another, they have limited avenues to resolve the problem, which can be

especially difficult for identity theft victims.

▪ Consumers have the right to dispute inaccurate and incomplete information on their credit

reports. Consumers also have the right to submit complaints to the CFPB. Most complaints

about the NCRAs received by the CFPB during 2020 and 2021 met the statutory criteria that

mandates the NCRAs review these complaints and respond to the CFPB.

▪ In 2020, Equifax, Experian, and TransUnion changed how they respond to complaints

transmitted to them by the CFPB. The CFPB’s analysis reveals that the NCRAs are closing

these complaints faster and with fewer instances of relief. In 2021, the NCRAs reported relief

in less than 2% of complaints down from nearly 25% complaints in 2019.

□ Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the

CFPB’s complaint process allows for the submission of complaints by consumers’

third-party representatives. The CFPB expects the NCRAs to respond to complaints,

including complaints where they have an obligation to do so under FCRA Section

611(e), when submitted by consumers and representatives acting on their behalf.

□ The NCRAs ignore this obligation and, instead, do not respond when they suspect

that a third party was involved in the submission of the complaint. The NCRAs rely

on speculative criteria in reaching these decisions.

□ The NCRAs’ actions leave many consumers without a response to the issues they

raised in their complaints.

▪ The FCRA requires the NCRAs to conduct a review of certain complaints sent to them by the

CFPB and to report their determinations and actions to the CFPB. The NCRAs’ responses to

these complaints raise serious questions about whether they are unable—or unwilling—to

comply with the law.

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1. Introduction

Credit reports

play an important role in the lives of consumers. Lenders often rely on these

reports when determining whether to approve loans and what terms to offer. Landlords may

review reports to decide whether to rent housing to prospective tenants. Employers may check

reports as part of the job application process. Given the consequential decisions for which credit

reports are considered, it is imperative that the credit reporting system maintain and distribute

data that are accurate. Access to an effective and efficient dispute management and resolution

process is legally required and essential to maintain the accuracy of consumers’ data.

Complaints submitted to the Consumer Financial Protection Bureau (CFPB) about inaccurate

information and the dispute process make up a significant share of all complaints received by

the CFPB, and the complaint process provides a key backstop to dispute channels available to

consumers.

There are several actors who make up the credit reporting system: furnishers provide

information about consumers to consumer reporting agencies that, in turn, compile

information and make it available to lenders and other users. Pivotal to this system are the three

largest nationwide consumer reporting agencies (NCRAs): Equifax, Experian, and TransUnion.

More than 200 million Americans have credit files and nearly 15,000 providers furnish

Credit reports, a popular term for consumer reports that typically contain information about credit accounts and

other trade lines as well as information from public records, are provided by the nationwide consumer reporting

agencies and other consumer reporting agencies to lenders and other users. See, e.g., Consumer Fin. Prot. Bureau,

Key Dimensions and Processes in the U.S. Credit Reporting System (2012),

https://files.consumerfinance.gov/f/201212_cfpb_credit-reporting-white-paper.pdf. See also 15 U.S.C. § 1681a(d).

See Fed. Trade Comm’n., Report on Complaint Referral Program Pursuant to Section 611(e) of the Fair Credit

Reporting Act (Dec. 2008), https://www.ftc.gov/sites/default/files/documents/reports/section-611e-fair-credit-

reporting-act-federal-trade-commission-program-referring-consumer/p044807fcracmpt.pdf (“The [611(e)] program

was intended to enable consumers to obtain a second review of their complaints when they remain dissatisfied after

having completed the dispute process with the CRAs … .”).

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information about consumers to the NCRAs.

Thus, the NCRAs’ actions—and inactions—have

large implications for consumers’ financial well-being and the economy more broadly.

The Fair Credit Reporting Act (FCRA) imposes various requirements on certain entities that

regularly compile and disseminate personal information about individual consumers.

The

CFPB and the Federal Trade Commission (FTC) are the federal agencies with the principal

responsibility for enforcing the FCRA.

In addition to its enforcement authority, the CFPB has

rule writing authority under the FCRA, as well as supervisory authority over many of the key

institutions in the consumer reporting system. The CFPB is also tasked with compiling and

transmitting to the NCRAs certain complaints from consumers about them.

The CFPB carries

out this responsibility through its consumer complaint process.

See, e.g., Equifax, Equifax Investor Day (2021) at 70,

https://d1io3yog0oux5.cloudfront.net/_43f211346c1e89c67b4b544fb8ae253f/equifax/db/1987/19204/pdf/EFX+20

21+Investor+Day+Presentation+.pdf (more than 220 million consumers); Experian, Frequently Asked Questions on

Credit Reports, https://www.experian.com/ourcommitment/credit-report-faqs (more than 220 million consumers)

(last visited Dec. 4, 2021); TransUnion, Customer Credit Reporting,

https://www.transunion.com/solution/customer-credit-check (more than 200 million files) (last visited Dec. 4,

2021); Consumer Fin. Prot. Bureau and Fed. Trade Comm’n., Accuracy in Consumer Reporting Part I,

https://www.ftc.gov/system/files/documents/videos/accuracy-consumer-reporting-workshop-session-

1/ftc_accuracy_in_consumer_reporting_workshop_transcript_segment_1_12-10-19.pdf (“right now, we have a very

diffused furnisher population, about 14,000 to 15,000 furnishers”). See also Kenneth Brevoort, Phillip Grimm &

Michelle Kambara, Consumer Fin. Prot. Bureau, Data Point: Credit Invisibles (May 2015),

https://files.consumerfinance.gov/f/201505_cfpb_data-point-credit-invisibles.pdf (CFPB research estimating that

188.6 million Americans have credit records at one of the NCRAs that could be scored and an additional 19.4 million

Americans have credit records that cannot be scored.).

See, e.g., House Financial Services Comm., Oversight and Investigations Subcomm., Consumer Credit Reporting:

Assess Accuracy and Compliance, 117th Cong. (May 26, 2021) (“House Hearing on Consumer Credit Reporting”)

(opening statement of Rep. Green, “Whether in assessing credit, employment, housing, insurance or even utilities, the

information provided by the major NCRAs has the power to either open or foreclose a vast array of opportunities that

undergird economic security and social justice for consumers”; opening statement of Rep . Barr, “The allocation of

credit is the lifeblood of the American economy, lenders, insurers and other financial firms rely on accurate credit

reports to reflect the potential risk of a customer.”).

15 U.S.C. § 1681 et seq.

See Senate Comm. on Banking, Housing, and Urban Affairs, An Overview of the Credit Bureaus and the Fair Credit

Reporting Act, 115th Cong. (July 12, 2018) (S. HRG. 115-361), https://www.govinfo.gov/content/pkg/CHRG-

115shrg32483/pdf/CHRG-115shrg32483.pdf (“An Overview of the Credit Bureaus”).

15 U.S.C. § 1681i(e)(1).

See discussion infra Section 2.3. See also Consumer Fin. Prot. Bureau, Learn how the complaint process works,

https://www.consumerfinance.gov/complaint/process/.

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Reporting requirement and scope

Under the FCRA, the CFPB must submit an annual report to Congress regarding information

gathered by the CFPB about certain complaints

it transmits to the NCRAs.

In prior years, the

CFPB met this reporting requirement by including additional company-level, summary

information in the Consumer Response Annual Report.

In 2020, however, significant changes

in complaint volume and the quality of responses provided by the three largest NCRAs led the

CFPB to publish this stand-alone report.

In addition to meeting the FCRA reporting requirement, this report uses consumer complaint

information to provide the public with important context about the consumer reporting

marketplace and to provide policymakers with timely information, context, and analysis as they

deliberate various legislative proposals that would affect the credit reporting system.

This report proceeds in the following sections. Section 2 begins by providing an overview of the

credit reporting system, including the dispute process, the CFPB complaint process, and the

participation of other actors. Section 3 discusses consumer complaints to the CFPB and the

issues consumers experience when reviewing and attempting to correct their credit reports.

Section 4 traces the evolution of the FCRA 611(e) process since it became law in 2003. Section 5

provides information required by FCRA Section 611(e)(5), including observed complaint

response patterns and other information captured by the CFPB’s consumer complaint process.

Finally, Section 6 concludes this report.

Data sources

The data used in this report comes from two primary sources. The first is CFPB complaint data

collected during the consumer complaint process. The consumer complaint process, which is

described more fully in Section 2.3, collects information from both consumers and companies.

See discussion of covered complaints infra Section 4.1.

15 U.S.C. § 1681i(e)(5).

See, e.g., Consumer Fin. Prot. Bureau, Consumer Response Annual Report (Mar. 2020),

https://files.consumerfinance.gov/f/documents/cfpb_consumer-response-annual-report_2019.pdf.

See Consumer Fin. Prot. Bureau, Consumer Response Annual Report (Mar. 2021) at 25,

https://files.consumerfinance.gov/f/documents/cfpb_2020-consumer-response-annual-report_03-2021.pdf (“Due

in part to the increase in complaint volume, the Bureau will issue a separate report later this year to provide a more

robust analysis of these complaints and responses.”).

See, e.g., Protecting Consumer Access to Credit Act, H.R. 1645, 117

Congress (2021); Comprehensive Credit

Reporting Enhancement, Disclosure, Innovation, and Transparency Act of 2021, H.R. 4120, 117

Congress (2021);

Medical Debt Relief Act of 2021, S.214, 117

Congress (2021); Consumer Credit Control Act of 2021, S.1343, 117

Congress (2021).

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The CFPB makes a subset of this data publicly available in the Consumer Complaint Database.

This report primarily focuses on complaint data from January 2020 to September 2021;

however, data going back to 2018 is included to provide additional context.

From January

2020 to September 2021, the CFPB received more than 800,000 credit or consumer reporting

complaints. Of these complaints, more than 700,000 were submitted about Equifax, Experian,

or TransUnion.

The second data source is information gathered from several dozen informal interviews with

consumers who submitted complaints to the CFPB. The CFPB conducted these interviews to

gain a more complete understanding of consumers’ experiences with the CFPB’s consumer

complaint process.

Additionally, the CFPB spoke with non-profit credit counselors and the

Consumer Data Industry Association (CDIA), an international trade association representing

consumer data companies. These conversations have informed this report.

Terminology

The FCRA sets forth definitions and rules of construction of many key terms.

The CFPB is

providing this glossary to aid comprehension of this report only.

For the purposes of this

report, the CFPB uses the following terms:

▪ Consumer complaint: submissions to the CFPB that express dissatisfaction with, or

communicate suspicion of wrongful conduct by, an identifiable entity related to a

consumer’s personal experience with a financial product or service. Section 2.3 discusses

the complaint process in more detail.

▪ Consumer reporting agency (CRA): a company that assembles or evaluates information

on consumers and sells information in the form of consumer reports.

See Consumer Fin. Prot. Bureau, Consumer Complaint Database , https://www.consumerfinance.gov/data-

research/consumer-complaints/. See also Disclosure of Consumer Complaint Narrative Data, 80 FR 15572 (Mar. 24,

2015), https://www.federalregister.gov/documents/2015/03/24/2015-06722/disclosure-of-consumer-complaint-

narrative-data.

This report fulfills the CFPB’s reporting requirement for complaints receiv ed from January to December 2020.

Complaints received before and after this reporting period are included for context.

These interviews are a valuable way to better understand the lived experiences of consumers who used the CFPB

complaint process; however, they are not intended to give the CFPB statistically significant data that can be

generalized to all consumers.

See 15 U.S.C. § 1681a.

The terms defined in this glossary are intended to enhance the readability for the audience, rather than to reflect a

legal interpretation by the CFPB.

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▪ Nationwide consumer reporting agency (NCRA): a consumer reporting agency that

compiles and maintains files on consumers on a nationwide basis regarding a

consumer’s credit worthiness, credit standing, or credit capacity. In this report, the CFPB

uses the term NCRAs to refer to Equifax, Experian, or TransUnion.

▪ Covered complaints: complaints submitted to the CFPB about the NCRAs concerning

incomplete or inaccurate information where the consumer also appears to have disputed

the completeness or accuracy with the NCRA. The FCRA requires the NCRAs to subject

these complaints to additional review when the CFPB transmits the complaints to the

NCRAs.

Section 5 analyzes these complaints.

▪ Credit report: a consumer report provided by a NCRA to a user (such as a lender or debt

collector) that typically contains information such as the payment history and status of

credit and other accounts.

▪ Credit file or consumer file: the information about a consumer that is contained in a

CRA’s database. The term file, when used in connection with information on any

consumer, means all the information on that consumer recorded and retained by a CRA

regardless of how that information is stored.

▪ Dispute: the FCRA requires CRAs and furnishers to reinvestigate information contained

in a consumer’s credit file when the consumer disputes the accuracy or completeness of

that information. Consumers can dispute an item of information through a CRA (indirect

disputes), through the furnisher who provided the disputed information (direct

disputes), or both. Section 2.2 summarizes the dispute process.

▪ Furnisher: an entity that furnishes information relating to consumers to one or more

CRAs for inclusion in a consumer report.

▪ Trade line: information furnished by a creditor to a CRA that reflects the consumer’s

account status and activity, such as balance owed and payment history.

This additional review is detailed at FCRA Section 611(e)(3), 15 U.S.C. § 1681i(e)(3).

10 BUREAU OF CONSUMER FINANCIAL PROTECTION

2. Background

This section provides background on the credit reporting system, focusing on the parts of the

system that interact with the CFPB’s complaint process. It discusses, in turn, the dispute process

(Section 2.2), the complaint process and its relationship to the dispute process (Section 2.3), and

actors that may play a role in consumers’ efforts to monitor their credit reports and attempt to

improve their credit standing (Section 2.4). Specifically, Section 2.4 addresses credit repair

organizations and emerging forms of credit education.

2.1 Credit reporting overview

The basic structure and operation of the credit reporting system is largely unchanged over the

last several decades.

CRAs assemble or evaluate consumer information from lenders and other

data furnishers and from public record providers to produce consumer reports and credit scores

that users rely on to make decisions.

The data standards that govern these data exchanges have evolved. The Metro 2 Format

, a

system of shorthand codes and fields to report trade lines, has now fully supplanted the Metro 1

Format.

But credit reports are still made up of some or all of the following components:

See Consumer Fin. Prot. Bureau, supra note 1.

The credit industry’s trade association, the Consumer Data Industry Association, created the Metro 2 Format. It is a

standardized electronic data reporting format used by data furnishers to furnish consumer credit account data. See

generally Consumer Data Industry Ass’n., Metro 2® Format for Credit Reporting,

https://www.cdiaonline.org/resources/furnishers-of-data-overview/metro2-information/. See also Chi Chi Wu and

Richard Rubin, National Consumer Law Center, The Latest on Metro 2: A Key Determinant As to What Goes Into

Consumer Reports (Oct. 2018), https://library.nclc.org/latest-metro-2-key-determinant-what-goes-consumer-

reports (“Metro 2 is considered the standard format for the credit reporting industry and is essentially ubiquitous. It

has been designed so that information vital to the preparation of accurate consumer reports is identified and defined

in a manner to facilitate the routine provision of accurate and compl ete information.”).

Following a settlement with the New York Attorney General, the NCRAs stopped accepting data in the older Metro

1 format in 2015. See Settlement Agreement, In the Matter of the Investigation by the Attorney General of the State of

11 BUREAU OF CONSUMER FINANCIAL PROTECTION

▪ Personal information: identifying information of the consumer with whom the credit file

is associated, such as the individual’s name, other names previously used, and current

and former addresses.

▪ Trade line information: accounts in the consumer’s name reported by creditors.

Creditors generally furnish the type of credit, credit limit or loan amount, account

balance, account payment history including the timeliness of payments (i.e., the payment

grid), whether the account status is current, delinquent or in collection, and the dates the

account was opened or closed.

▪ Public record information: public record data of a financial nature, such as consumer

bankruptcies.

▪ Collections: third-party collection items, reported by debt buyers or debt collection

agencies.

▪ Inquiry: request by a company to view a credit file.

The FCRA is concerned with ensuring that the various parties in the credit reporting system take

steps to ensure the data that flows through the system is accurate and is used only for

permissible purposes.

When preparing consumer reports, for example, CRAs must employ

reasonable procedures to “assure maximum possible accuracy” of the information concerning

the individual about whom the report relates.

The FCRA and Regulation V also set forth

requirements for furnishers concerning the accuracy and integrity of data furnished.

New York, of Experian Info. Sol., Inc., Equifax Info. Serv. L.L.C., and TransUnion L.L.C. (Mar. 8, 2015) ,

https://ag.ny.gov/pdfs/CRA%20Agreement%20Fully%20Executed%203.8.15.pdf. The requirement to retire the

Metro 1 Format was also included shortly thereafter in an Assurance of Voluntary Compliance entered into by the

NCRAs with Attorneys General from 31 states. See Assurance of Voluntary Compliance, In the Matter of Equifax Info.

Serv. L.L.C., Experian Info. Sol., Inc., and TransUnion L.L.C. (May 20, 2015),

https://www.ohioattorneygeneral.gov/Files/Briefing-Room/News-Releases/Consumer-Protection/2015-05-20-

CRAs-AVC.aspx.

See generally Consumer Fin. Prot. Bureau, What is a credit report?, https://www.consumerfinance.gov/ask-

cfpb/what-is-a-credit-report-en-309/ (last updated Sep. 1, 2020). See also Consumer Fin. Prot. Bureau, What's a

credit inquiry?, https://www.consumerfinance.gov/ask-cfpb/whats-a-credit-inquiry-en-1317/ (last updated Sep. 4,

2020).

15 U.S.C. §§ 1681 and 1681b.

15 U.S.C. § 1681e(b). See also Consumer Fin. Prot. Bureau, CFPB Supervision and Examination Manual,

https://files.consumerfinance.gov/f/documents/cfpb_consumer-reporting-larger-participants_procedures_2020-

02.pdf.

15 U.S.C. § 1681s-2. See also Consumer Fin. Prot. Bureau, Supervisory Highlights Consumer Reporting Special

Edition (Mar. 2017), https://files.consumerfinance.gov/f/documents/201703_cfpb_Supervisory-Highlights-

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Furnishers and CRAs have additional dispute handling responsibilities. When consumers

believe there is inaccurate information in their credit report, the FCRA enables consumers to

dispute the information. Consumers may dispute information with the data furnisher (e.g., a

lender or servicer), one or more CRAs, or both the furnisher and CRAs (Section 2.2). Consumers

may also submit complaints to the CFPB (Section 2.3).

2.2 Dispute process

The structure of the FCRA creates interrelated legal standards and requirements to support the

goal of accurate credit reporting.

The FCRA provides consumers with dispute rights and

imposes obligations on both the NCRAs and furnishers to ensure that potential errors are

investigated and corrected promptly.

CRAs must satisfy legal requirements when information is disputed. Under Section 611 of the

FCRA, if a consumer disputes with the CRA the completeness or accuracy of an item of

information, the CRA has an obligation to conduct a reasonable reinvestigation.

There are

specific timelines, notification requirements, and actions a CRA must follow when conducting a

reasonable reinvestigation.

A CRA is not required to investigate a dispute if the CRA has

reasonably determined that the dispute is frivolous or irrelevant, but must notify the consumer

of its determination.

When a consumer disputes a trade line to the NCRAs, the dispute is often routed through the

Online Solution for Complete and Accurate Reporting (e-OSCAR), a system used by the NCRAs

to create and respond to consumer credit history disputes with furnishers.

The NCRAs

Consumer-Reporting-Special-Edition.pdf; CFPB v. Fair Collections & Outsourcing, Inc., No. 8:19-cv-02817-GJH (D.

Md. Sept. 16, 2021), https://files.consumerfinance.gov/f/documents/cfpb_fco_proposed_stipulated-jdmt-and-

order_2021-08.pdf (CFPB enforcement action against a furnisher of information to consumer reporting agencies for

failing to maintain reasonable policies and procedures regarding the accuracy and integrity of the information it

furnishes, including the handling of consumer disputes, failing to conduct reasonable investigations of certain

consumer disputes, and failing to cease furnishing information that was alleged to have been the result of identity

theft before it made any determination whether the information was accurate.).

See generally, An Overview of the Credit Bureaus, supra note 6.

15 U.S.C. § 1681i(a)(1)(A) and 12 C.F.R. § 1022.43(a).

15 U.S.C. § 1681i(a)(1)(A).

See, e.g., Consumer Fin. Prot. Bureau, Supervisory Highlights Consumer Reporting Special Edition (Dec. 2019) at

Section 3.4, https://files.consumerfinance.gov/f/documents/cfpb_supervisory-highlights_issue-20_122019.pdf.

15 U.S.C. § 1681i(a)(3)(A)-(C).

See e-OSCAR, About e-OSCAR, https://www.e-oscar.org/getting-started/about-us.

13 BUREAU OF CONSUMER FINANCIAL PROTECTION

transmit an Automated Credit Dispute Verification (ACDV) that includes a dispute code,

narrative text, and since 2013, supporting documents provided by consumers.

Furnishers have independent obligations under the FCRA. Furnishers have specific timelines,

notification requirements, and actions they must follow when conducting an investigation.

Similar to CRAs, a furnisher is not required to investigate a direct dispute if the furnisher has

reasonably determined that the dispute is frivolous or irrelevant, but must notify the consumer

of its determination.

Consumers also play a vital role in promoting accurate reports. By disputing inaccurate

information—described by some consumers as a time-consuming and difficult process (Section

3.2)—consumers provide information that can be used by CRAs to evaluate whether furnishers

and other data sources provide reliable, verifiable information.

CRAs can also use consumer

disputes to assess their matching algorithms and other practices that may be introducing

inaccuracies. The CFPB has previously emphasized the importance of CRAs using disputes to

assess furnisher data quality. For example, as discussed in a recent edition of Supervisory

Highlights, the CFPB directed CRAs to revise their accuracy procedures to identify and take

corrective action regarding data from furnishers whose dispute response behavior indicates the

furnisher is not a source of reliable, verifiable information about consumers.

Consumers may

also dispute information that results from identity theft. The FCRA places additional

requirements on both CRAs and furnishers for consumer claims that disputed information is the

result of identity theft.

See, e.g., Chi Chi Wu, Michael Best, & Sarah Bolling Mancini, National Consumer Law Center, Automated Injustice

Redux at 9 (Feb. 2019), https://www.nclc.org/images/pdf/credit_reports/automated-injustice-redux.pdf.

See, e.g., Consumer Fin. Prot. Bureau, supra note 26 at Section 3. See also Consumer Fin. Prot. Bureau, CFPB

Bulletin 2013-09 (Sept. 9, 2013), https://files.consumerfinance.gov/f/201309_cfpb_bulletin_furnishers.pdf

(discussing a furnisher’s obligation to review all relevant information received from a CRA in connection with a

consumer dispute); Consumer Fin. Prot. Bureau, CFPB Bulletin 2014-01 (Feb. 27, 2014),

https://files.consumerfinance.gov/f/201402_cfpb_bulletin_fair-credit-reporting-act.pdf (discussing a furnisher’s

obligation to investigate disputed information in a consumer credit report and provide notice of inaccurate

information to the CRAs).

15 U.S.C. § 1681s-2(a)(8)(F) and 12 CFR § 1022.43(f)(1)-(2).

See, e.g., Consumer Fin. Prot. Bureau, supra note 26 at Section 2 (discussing data furnishing and furnisher

oversight).

See Consumer Fin. Prot. Bureau, Supervisory Highlights: Issue 24, Summer 2021 (Jun. 2021),

https://files.consumerfinance.gov/f/documents/cfpb_supervisory-highlights_issue-24_2021-06.pdf.

15 U.S.C. § 1681c-2; 15 U.S.C. § 1681s-2(a)(6). See also CFPB v. Fair Collections & Outsourcing, Inc., No. 8:19-cv-

02817-GJH (D. Md. Sept. 16, 2021), https://files.consumerfinance.gov/f/documents/cfpb_fco_proposed_stipulated-

jdmt-and-order_2021-08.pdf (CFPB enforcement action against a furnisher of information to consumer reporting

agencies for failing to maintain reasonable policies and procedures regarding the accuracy and integrity of the

14 BUREAU OF CONSUMER FINANCIAL PROTECTION

2.3 CFPB complaint process

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) directs the

CFPB to collect, investigate, and respond to consumer complaints.

The Dodd-Frank Act

requires the CFPB to establish reasonable procedures to provide consumers

with a timely

written response to complaints

concerning a covered person.

The CFPB accepts complaints about consumer financial products or services through its website,

by referral from the White House, congressional offices, other federal and state agencies, and by

telephone and mail. When consumers submit complaints through the CFPB website, the online

complaint form guides them through a five-step process:

1. Consumers first select the consumer financial product or service with which they have a

problem or issue. Within the credit or consumer reporting product category, consumers

can further select the type of credit reporting product (e.g., credit report and other

personal consumer report, such as background checks and employment screening).

2. Next, consumers identify the issue that best describes the problem they experienced. For

credit or consumer reporting complaints, options include: Credit monitoring or identity

theft protection services; Improper use of your report; Incorrect information on your

report; Problem with a credit reporting company’s investigation into an existing

problem; Problem with fraud alerts or security freezes; and Unable to get your credit

report or credit score. Consumers are also asked whether they have attempted to fix the

problem with the company.

3. Then, the complaint form prompts consumers to describe what happened and their

desired resolution using free-form text fields. Consumers are invited to attach relevant

documentation and can consent to have their complaint narrative published in the public

Consumer Complaint Database.

information it furnishes, including the handling of consumer disputes, failing to conduct reasonable investigations of

certain consumer disputes, and failing to cease furnishing information that was alleged to have b een the result of

identity theft before it made any determination whether the information was accurate.).

12 U.S.C. § 5511(c)(2).

12 U.S.C. § 5481(4) (“The term ‘consumer’ means an individual or an agent, trustee, or representative acting on

behalf of an individual.”).

See Terminology supra Section 1.

12 U.S.C. § 5534(a). See also 12 U.S.C. § 5481(6) (The term “covered person” means any person that engages in

offering or providing a consumer financial product or service and any affiliate if such affiliate acts as a service

provider to such person).

15 BUREAU OF CONSUMER FINANCIAL PROTECTION

4. After that, consumers identify the company to which they want to direct their complaint.

Unlike most other products and services, a consumer’s problem with a credit or

consumer report may prompt them to submit multiple complaints—e.g., one about the

data furnisher and one about the CRA. The complaint form reflects this market feature.

When selecting the credit or consumer reporting product category, consumers can

choose to name additional companies in a single complaint session.

5. Finally, the complaint form requires users to identify whether they are submitting the

complaint for themselves or on behalf of someone else.

Consumers who submit

complaints on their own behalf are required to provide their contact information.

Users

submitting complaints on behalf of someone else are required to provide their contact

information, as well as the information of the person on whose behalf they are acting.

The complaint form also requires users to affirm that the information provided in their

complaint is true to the best of their knowledge and belief.

The CFPB routes the complaint directly to the company or companies identified by the

consumer for review and response. Where appropriate, complaints are routed to other federal

agencies.

Companies are expected to review the information provided in the complaint,

communicate with the consumer as needed, determine what action to take in response, and

provide a written response to the CFPB and the consumer.

Companies report back to the consumer and the CFPB in writing via a secure Company Portal.

Companies choose a closure category that best describes their response. Category options

include Closed with monetary relief, Closed with non-monetary relief, Closed with explanation,

and administrative options.

Finally, the CFPB invites the consumer to review and provide

feedback about the company’s response. Consumers can access their complaint online or may

In April 2017, in response to feedback from stakeholders and consumers, the CFPB made enhancements to

improve the user experience when submitting a complaint. Where consumers previously had to go through the entire

submission process separately for each company about which they were submitting a complaint, beginning in April

2017, consumers could use one submission process to submit complaints about up to four companies.

In May 2021, the CFPB made enhancements to this step of the complaint form. These changes emphasized that a

person submitting on behalf of someone else must identify themselves in the complaint submission. Additionally,

these changes required that users submitting on behalf of themselves provide an email address.

Consumers also have the option to provide limited demographic information , such as their age and servicemember

status. As of May 2021, users can also disclose their household size and combined annual household income.

The complaint form requires that users attest to their submission (“The information given is true to the best of my

knowledge and belief. I understand that the CFPB cannot act as my lawyer, a court of law, or a financial advisor.”).

For example, when the CFPB receives a complaint about a depository institution with $10 billion or less in assets or

a non-depository that does not offer a consumer financial product or service, it refers the complaint to the appropriate

prudential regulator or other regulatory agency.

See discussion of administrative responses infra Section 3.1

16 BUREAU OF CONSUMER FINANCIAL PROTECTION

call the CFPB to receive status updates, provide additional information, and review responses

provided by the company.

Unique to the NCRAs, the CFPB asks additional questions for complaints in which the consumer

identified Incorrect information on your report or Problem with a credit reporting company's

investigation into an existing problem as their primary issue:

▪ Does your company have a record of the consumer disputing this issue in the past?

▪ Has a data furnisher reported any errors to your company regarding the information

disputed in the complaint?

If the response to either question is yes, the NCRAs are required to provide the CFPB with

details of any previous FCRA dispute or furnisher-reported error.

The CFPB uses information from its complaint process to inform its work, including its

supervisory, enforcement, rulemaking, and educational activities.

The CFPB publishes an

annual report to Congress about the complaints it receives, as well as other periodic reports.

The CFPB also makes complaint data publicly available in the Consumer Complaint Database.

2.4 Credit monitoring, credit repair, and

credit education

A variety of companies offer to mediate the relationship between consumers and their reports

and scores. Consumers frequently access their reports and scores through third parties,

including credit monitoring services, financial institutions and lenders, identity theft protection

See, e.g., Consumer Fin. Prot. Bureau, Having a problem with a financial product or service?,

https://www.consumerfinance.gov/complaint/ (“Complaints give us insights into problems people are experiencing

in the marketplace … .”). See also Consumer Fin. Prot. Bureau, supra note 25 (“An effective CMS should ensure that

an institution is responsive and responsible in handling consumer complaints and inquiries.”).

See, e.g., Consumer Response Annual Report (Mar. 2021), supra note 12. See also Lewis Kirvan and Robert Ha,

Consumer Fin. Prot. Bureau, Consumer complaints throughout the credit life cycle, by demographic characteristics

(Sep. 2021), https://files.consumerfinance.gov/f/documents/cfpb_consumer-complaints-throughout-credit-life-

cycle_report_2021-09.pdf.

See Consumer Fin. Prot. Bureau, Consumer Complaint Database , https://www.consumerfinance.gov/data-

research/consumer-complaints/.

17 BUREAU OF CONSUMER FINANCIAL PROTECTION

services, and resellers.

The NCRAs also offer monitoring products (e.g., Experian’s Free Credit

Report and FICO Score app) and identity theft protection services (e.g., TransUnion’s

TrueIdentity).

Credit repair companies, credit clinics, and similar companies also interact with the credit

reporting system. Market research suggests that there are as many as 46,000 businesses that

offer credit repair services in the United States—the vast majority of which are sole

proprietorships.

These companies purport to help consumers identify and dispute information

on their credit reports, but many charge illegal fees, operate in bad faith, mislead consumers, or

are outright fraudulent.

Both the CFPB and the FTC have brought legal actions against credit

repair companies. For example, in recent years, the CFPB, the FTC, or both have brought

lawsuits against companies charging illegal fees to consumers in violation of the Telemarketing

See, e.g., Notice of a Public List of Companies Offering Existing Customers Free Access to a Credit Score , 81 FR

69046 (Oct. 5, 2016), https://www.federalregister.gov/documents/2016/10/05/2016-24014/notice-of-a-public-list-

of-companies-offering-existing-customers-free-access-to-a-credit-score (a Request for Information published by the

CFPB to inquire about which credit card providers offered access to a credit score; Consumer Fin. Prot. Bureau,

Where to find free access to a credit score (Feb. 2017),

https://files.consumerfinance.gov/f/documents/201702_cfpb_finding -free-access-to-credit-score_handout.pdf (a

list of financial institutions offering free access to credit scores). See also Press Release, Credit Karma, Credit Karma

Money launches bill features aimed at helping members improve their credit scores (Aug. 11, 2021),

https://www.creditk arma.com/about/releases/credit-karma-money-launches-bill-features-aimed-at-helping-

members-improve-their-credit-scores (“Credit Karma is a consumer technology company with more than 110 million

members in the United States, U.K. and Canada, including almost half of all U.S. millennials.”).

See, e.g., Arnez Rodriguez, IBISWorld, US Industry (Specialized) Report Od5741: Credit Repair Services (Feb.

2021), https://www.ibisworld.com/united-states/market-research-reports/credit-repair-services-industry/ (noting

that these companies frequently offer a variety of services, but that dispute processing is the most common service

provided). The CFPB recently brought a lawsuit alleging Credit Repair Cloud and its owner of providing assistance to

illegal credit-repair businesses. See Consumer Fin. Prot. Bureau, CFPB Sues Software Company That Helps Credit-

Repair Businesses Charge Illegal Fees (Sep. 20, 2021), https://www.consumerfinance.gov/about-

us/newsroom/cfpb-sues-software-company-that-helps-credit-repair-businesses-charge-illegal-fees/.

See, e.g., Fed. Trade Comm’n., Telemarketing Sales Rule Record,

https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/telemarketing-sales-rule.

18 BUREAU OF CONSUMER FINANCIAL PROTECTION

Sales Rule

, misleading consumers in violation of the Telemarketing Sales Rule

, and violating

the Credit Repair Organizations Act, the Consumer Review Fairness Act, the Truth in Lending

Act, and the Electronic Fund Transfer Act.

Additionally, the CFPB and FTC have produced and

promoted resources intended to educate consumers about how to fix inaccuracies on their credit

reports, as well as the potential risks that arise from credit repair offers.

In Congressional testimony, the NCRAs identified credit repair companies as a major challenge

in their own dispute processes and in their handling of complaints.

In general, the NCRAs

See, e.g., Consumer Fin. Prot. Bureau, Consumer Financial Protection Bureau Files Suit Against Lexington Law,

PGX Holdings, and Related Entities (May 2, 2019), https://www.consumerfinance.gov/about-us/newsroom/bureau-

files-suit-against-lexington-law-pgx-holdings-and-related-entities/ (lawsuit alleging the defendants violated the

Telemarketing Sales Rule (TSR) by requesting and receiving payment of prohibited upfront fees for their credit repair

services); Fed. Trade Comm’n., Grand Teton Professionals LLC, https://www.ftc.gov/enforcement/cases-

proceedings/182-3168/grand-teton-professionals-llc (alleging credit repair scheme that charged illegal upfront fees

and falsely claimed to repair consumers’ credit violated the Telemarketing Sales Rule). See also Consumer Fin. Prot.

Bureau, Consumer Financial Protection Bureau and Commonwealth of Massachusetts File Suit Against Credit-

Repair Telemarketers (May 22, 2020), https://www.consumerfinance.gov/about-us/newsroom/cfpb-

commonwealth-massachusetts-file-suit-against-credit-repair-telemarketers/; Consumer Fin. Prot. Bureau, CFPB

Sues Software Company That Helps Credit-Repair Businesses Charge Illegal Fees (Sep. 20, 2021),

https://www.consumerfinance.gov/about-us/newsroom/cfpb-sues-software-company-that-helps-credit-repair-

businesses-charge-illegal-fees/.

See, e.g., Consumer Fin. Prot. Bureau, CFPB Takes Action Against Company and its Owners and Executives for

Deceptive Debt-Relief and Credit-Repair Services (Jun. 29, 2021), https://www.consumerfinance.gov/about-

us/newsroom/cfpb-takes-action-against-company-and-its-owners-and-executives-for-deceptive-debt-relief-and-

credit-repair-services/. See also Consumer Fin. Prot. Bureau, Consumer Financial Protection Bureau Sues Debt

Settlement Company FDATR, Inc., and Owners Dean Tucci and Kenneth Wayne Halverson (Nov. 20, 2020),

https://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-sues-debt-

settlement-company-fdatr-inc-and-owners-dean-tucci-and-kenneth-wayne-halverson/.

See, e.g., Fed. Trade Comm’n., FTC Stops Operators of Fake Credit Repair Scheme (Jun. 21, 2019),

https://www.ftc.gov/news-events/press-releases/2019/06/ftc-stops-operators-fake-credit-repair-scheme. See also

Fed. Trade Comm’n, FTC Returns More than $3.1 Million to Victims of Student Loan Debt Relief and Credit Repair

Scheme (Mar. 26, 2020), https://www.ftc.gov/news-events/press-releases/2020/03/ftc-returns-more-31-million-

victims-student-loan-debt-relief.

See, e.g., Consumer Fin. Prot. Bureau, A credit repair firm sent me an offer outlining their credit repair program.

Should I enroll? (Jun. 7, 2017), https://www.consumerfinance.gov/ask-cfpb/a-credit-repair-firm-sent-me-an-offer-

outlining-their-credit-repair-program-should-i-enroll-en-327/. See also Blog, Lisa Weintraub Schifferle, Fed. Trade

Comm’n., Credit repair: Fixing mistakes on your credit report (Jan. 16, 2020),

https://www.consumer.ftc.gov/blog/2020/01/credit-repair-fixing-mistakes-your-credit-report.

See Written Testimony of Beverly Anderson, Equifax, to House Financial Services Comm., Oversight and

Investigations Subcomm., Consumer Credit Reporting: Assess Accuracy and Compliance, 117th Cong. (May 26,

2021), https://www.congress.gov/117/meeting/house/112712/witnesses/HHRG-117-BA09-Wstate-AndersonB-

20210526.pdf; Written Testimony of Sandy Anderson, Experian, to House Financial Services Comm., Oversight and

Investigations Subcomm., Consumer Credit Reporting: Assess Accuracy and Compliance, 117th Cong. (May 26,

2021), https://www.congress.gov/117/meeting/house/112712/witnesses/HHRG-117-BA09-Wstate-AndersonS-

20210526.pdf; Written Testimony of John Danaher, TransUnion, to House Financial Services Comm., Oversight and

Investigations Subcomm., Consumer Credit Reporting: Assess Accuracy and Compliance, 117th Cong. (May 26,

2021), https://www.congress.gov/117/meeting/house/112712/witnesses/HHRG-117-BA09-Wstate-DanaherJ-

20210526-U1.pdf.

19 BUREAU OF CONSUMER FINANCIAL PROTECTION

claim that credit repair companies submit large volumes of non-meritorious disputes.

They

argue that these disputes, if successful in the removal of accurate information, affect the ability

of lenders to effectively manage risk.

They also assert that the volume of disputes submitted by

credit repair organizations reduces resources available to appropriately handle legitimate

disputes.

Others, however, have suggested that the NCRAs’ actions facilitate the credit repair

industry.

Education providers also mediate the relationship between consumers and their reports and

scores. The CFPB, for example, as part of its statutory functions, provides consumers with

financial education, including answers to common consumer questions and how-to guides on

various topics in credit reporting.

Importantly, the CFPB—and the FTC—also provides sample

template letters for consumers to use when disputing information with the CRAs.

The CFPB

See, e.g., Written Testimony of Sandy Anderson, Experian supra note 59 at 2 (“We believe most of his [sic]

increase is due to third-party credit repair organizations that file dispute s on accurate but negative information to try

to game the system.”); Written Testimony of Beverly Anderson, Equifax supra note 59 at 4 (“The CFPB complaint

portal has been inundated with the rise of credit repair organizations’ submissions disputing accura te but adverse

information on consumers’ credit reports.”).

See, e.g., Written Testimony of Rebecca Kuehn, Hudson Cook, LLP on Behalf of the Consumer Data Industry

Association, to House Financial Services Comm., Oversight and Investigations Subcomm., Consumer Credit

Reporting: Assess Accuracy and Compliance, 117th Cong. (May 26, 2021),

https://www.congress.gov/117/meeting/house/112712/witnesses/HHRG-117-BA09-Wstate-KuehnR-20210526.pdf

("To the extent that these credit repair activities are successful in removing accurate information, they affect a

lender’s ability to appropriately assess the risk of their lending decisions, which in turn affects lending quality overall.

… Misuse of the dispute process is detrimental to consumers and the lenders that rely on accurate information to

appropriately assess risk.”). See also Written Testimony of Beverly Anderson, Equifax supra note 59 at 4 (“If a credit

repair organization is successful in clearing accurate, negative information from a report, that consumer may go on to

accumulate new credit obligations that the consumer is not able to afford, with lenders now blind to previous

obligations or payment behavior.”).

See, e.g., Written Testimony of Rebecca Kuehn, Hudson Cook, LLP on Behalf of the Consumer Data Industry

Association supra note 61 (“The time and resources expended investigating disputes made by credit repair companies

take away time and resources from focusing on legitimate disputes, which could otherwise be handled more

quickly.”).

See Written Testimony of Chi Chi Wu, National Consumer Law Center, to House Financial Services Comm.,

Oversight and Investigations Subcomm., Consumer Credit Reporting: Assess Accuracy and Compliance, 117th Cong.

(May 26, 2021), https://www.congress.gov/117/meeting/house/112712/witnesses/HHRG-117-BA09-Wstate-WuC-

20210526.pdf (“[T]here is some indication that, for all their complaints, the credit bureaus have entered into

agreements to cooperate with credit repair firms.”).

See, e.g., Consumer Fin. Prot. Bureau, Credit reports and scores, https://www.consumerfinance.gov/consumer-

tools/credit-reports-and-scores/. See also 12 U.S.C. § 5511(c)(1) (conducting financial education programs is one of

the primary functions of the CFPB).

See, e.g., Consumer Fin. Prot. Bureau, How do I dispute an error on my credit report? (Oct. 19, 2021),

https://www.consumerfinance.gov/ask-cfpb/how-do-i-dispute-an-error-on-my-credit-report-en-314/. See also Fed.

Trade Comm’n., Sample Letter Disputing Errors on Credit Reports to the Business that Supplied the Information ,

https://www.consumer.ftc.gov/articles/sample-letter-disputing-errors-credit-reports-business-supplied-

information.

20 BUREAU OF CONSUMER FINANCIAL PROTECTION

provides these letters to help guide consumers to include information needed by the CRAs to

conduct a reasonable investigation.

New education providers and forms of educational content are also reaching consumers.

Support groups,

social media groups,

and influencers

publish and share content about

credit reports and scores. Many of these groups and influencers are marketing credit repair

goods (e.g., sample letters, kits, books, and seminars) and many are marketing credit repair

services.

As will be discussed in Sections 4 and 5, the NCRAs use similarity in narrative text to identify

what they suspect are complaints submitted by credit repair organizations. But with the growth

of educational content and providers—and the circulation of template language—it becomes

increasingly difficult to distinguish template language used by a credit repair organization from

template language used by a consumer (e.g., a consumer using a CFPB or FTC sample letter)

without contacting the consumer.

See, e.g., Meetup, Credit Repair, https://www.meetup.com/topics/credit-repair/ (more than 4,000 members

across 36 groups) (last visited Dec. 4, 2021).

See, e.g., Facebook, Credit Repair Cloud Community,

https://www.facebook.com/groups/creditrepaircloudcommunity/ (a group with more than 24,000 members) (last

visited Dec. 4, 2021). There are many similar groups in this topic area. See also Blog, Credit Karma, Gen Z turns to

TikTok and Instagram for financial advice and actually takes it, study finds (Jul. 13, 2021),

https://www.creditkarma.com/about/commentary/gen-z-turns-to-tiktok-and-instagram-for-financial-advice-and-

actually-takes-it-study-finds (“56% of Gen Z and millennials say they intentionally seek out information or advice

about personal finance online or through social media platforms”).

For example, YouTube lists over 1,800 channels that have posted videos with the hashtag #creditrepair. Several of

the videos have hundreds of thousands of views. See, e.g., YouTube, How To REMOVE Hard Inquiries From Credit

Report For FREE!, https://www.youtube.com/watch?v=qa4-obKYQGU (video with more than 600,000 views as of

Dec. 9, 2021).

21 BUREAU OF CONSUMER FINANCIAL PROTECTION

3. Complaint data

In 2020, the CFPB received more than 319,000 credit or consumer reporting complaints.

That

number was quickly surpassed in 2021 with the CFPB receiving more than 500,000 credit or

consumer reporting complaints between January and September alone. Public discussion about

credit reporting complaints typically focuses on these record-breaking volumes.

This section

goes beyond those headline numbers to better contextualize the complaints data. To do so, this

section will discuss factors contributing to the increase in credit or consumer reporting

complaints over the past 20 months and the issues that consumers raise in their complaints.

Two details are worth noting at the outset. First, the volume of complaints received by the CFPB,

while large, is a fraction of the volume of disputes submitted to furnishers and CRAs annually.

Prior CFPB research estimated the NCRAs received millions of consumer contacts disputing the

completeness or accuracy of information on their credit reports.

Second, the credit reporting industry is the subject of a large number of complaints in part

because of its market structure. The industry has a large footprint—credit reports from the

NCRAs cover about 1.6 billion credit accounts per month on more than 200 million adults in the

United States.

Moreover, because trade line information is often furnished to multiple CRAs,

See Consumer Response Annual Report (Mar. 2021), supra note 12.

See, e.g., Ann Carrns, NEW YORK TIMES, More Consumers Complain About Errors on Their Credit Reports (Feb. 19,

2021), https://www.nytimes.com/2021/02/19/your-money/credit-report-errors.html (“Add this to the financial

fallout from the pandemic: More consumers are complaining about errors on their credit reports, and many are

frustrated when trying to fix the mistakes, according to federal complaint data.”); Kate Berry, AMERICAN BANKER, Why

are complaints about credit bureaus soaring? (Apr. 30, 2021), https://www.americanbanker.com/news/why-are-

complaints-about-credit-bureaus-soaring (“Yet the number of complaints to the Consumer Financial Protection

Bureau about credit reporting issues soared last year. Equifax, Experian and TransUnion were directly named in

246,000 direct complaints last year, more than double in 2019.”).

See Consumer Fin. Prot. Bureau, supra note 1 at 27 (“In 2011, the NCRAs received approximately 8 million

consumer contacts disputing the completeness or accuracy of one or more trade lines, public records, or credit header

information (identification information) in their files. Based on these contacts, the number of credit -active consumers

who disputed one or more items with an NCRA in 2011 ranges from 1.3% to 3.9%.”) (citations omitted).

See Equifax, supra note 3 at 70 (more than 1.6 billion trade lines). Consumers who do not have a credit report may

also have issues arising from the fact that they are not in the credit reporting system. See, e.g., Kenneth Brevoort,

22 BUREAU OF CONSUMER FINANCIAL PROTECTION

consumers frequently submit complaints to all the companies involved, i.e., all of the CRAs to

which the information was furnished as well as the furnisher. These two characteristics—a large

footprint and the involvement of multiple companies–increase the prominence of credit

reporting complaints when considered in the aggregate and makes simple complaint volume

comparisons to other product markets inappropriate.

Figure 1 shows the breakdown of companies who were the subject of credit and consumer

reporting complaints since 2017. A large percentage of these complaints are submitted about the

NCRAs. From January 2020 to September 2021, the CFPB received more than 225,000

complaints about each of the NCRAs (and more than 700,000 about NCRAs, collectively).

Although the increase in complaints about the NCRAs accelerated in 2020 and 2021, this

upward trend precedes 2020. Complaint volume about other CRAs is also increasing—growing

from 3,600 complaints in 2019 to more than 4,300 in 2020.

Phillip Grimm & Michelle Kambara, supra note 3; Kenneth Brevoort and Michelle Kambara, Consumer Fin. Prot.

Bureau, CFPB Data Point: Becoming Credit Visible (Jun. 2017),

https://files.consumerfinance.gov/f/documents/BecomingCreditVisible_Data_Point_Final.pdf .

23 BUREAU OF CONSUMER FINANCIAL PROTECTION

FIGURE 1: BREAKDOWN OF NCRAS AND OTHER RECIPIENTS OF CREDIT OR CONSUMER REPORTING

COMPLAINTS, BY YEAR

Significant numbers of credit or consumer reporting complaints are also submitted about

companies that furnish information to the NCRAs. In 2020, there were nearly as many credit

reporting complaints about furnishers as there were complaints about credit cards, and more

complaints were submitted about furnishing than were submitted about bank accounts.

Table 1 summarizes product-level complaint submissions for several products in 2020 and

illustrates that consumers submit more than twice as many credit or consumer reporting

complaints as the next most frequently complained about product (debt collection).

Many of the complaints that are redirected to another regulator are also complaints about the furnishing of

information by smaller depository institutions. In those cases, consumers are prompted to contact the institution’s

prudential regulator.

24 BUREAU OF CONSUMER FINANCIAL PROTECTION

TABLE 1: SHARE OF CONSUMERS, COMPLAINTS, AND COMPLAINTS PER CONSUMER IN 2020 FOR THE

FIVE PRODUCTS WITH THE GREATEST PER CONSUMER COMPLAINT VOLUME

Share of

consumers

Share of

complaints

Complaints per

consumer

Credit or consumer reporting

35.1%

59.2%

3.41

Debt collection

18.6%

15.1%

1.64

Credit card

11.2%

6.6%

1.19

Checking or savings

9.9%

5.5%

1.13

Mortgage

9.7%

5.4%

1.13

3.1 Factors underlying complaint volume

increases

The CFPB has a unique perspective on the credit reporting marketplace. In addition to being

able to analyze differences in the complaint response performance at the NCRAs (Section 5), the

CFPB can analyze data to identify trends in the use of its complaint process.

In this section, the CFPB summarizes some of the factors contributing to the increase in credit

or consumer reporting complaint volume. There are many factors that plausibly could have

contributed to this increase (e.g., accommodations provided by the Coronavirus Aid, Relief, and

Economic Security (CARES) Act

; changes in regulatory guidance during the COVID-19

pandemic

; increased shopping for mortgage credit and mortgage refinance credit due to low

interest rates

; increased consumer awareness of the salience of credit reports). This section

will focus its discussion on the behavior of those who use the complaint process.

See generally Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, § 4021 (2020).

See Consumer Fin. Prot. Bureau, Statement on Supervisory and Enforcement Practices Regarding the Fair Credit

Reporting Act and Regulation V in Light of the CARES Act,

https://files.consumerfinance.gov/f/documents/cfpb_credit-reporting-policy-statement_cares-act_2020-04.pdf. See

also Letter from consumer advocacy organizations to Kathy Kraninger, Consumer Fin. Prot. Bureau (Sep. 24, 2020),

https://www.nclc.org/images/pdf/credit_reports/Letter-to-CFPB-urging-revocation-of-extra-time-for-disputes.pdf

(noting a dramatic increase in consumer complaints following implementation of guidance for CRAs).

Although not a statistically valid sample, many consumers the CFPB talk ed with mentioned mortgage credit, and

housing more generally, as a motivating factor for working on their credit.

25 BUREAU OF CONSUMER FINANCIAL PROTECTION

Consumers are submitting more complaints in each session

As shown in Figure 2, consumers who submit credit reporting complaints are increasingly

submitting multiple complaints to the CFPB in a single session. Several factors may explain this

change in complaint behavior. First, with increased access to credit reports and scores,

consumers’ awareness of the actors making up the credit reporting system may be increasing.

Second, conversations with consumers suggest that eligibility for mortgage credit is a priority for

many consumers who review their credit history.

Because the standard credit report used in

residential mortgage transactions includes data from all three NCRAs (i.e., the so called “tri-

merge report”), these consumers may be more likely to submit complaints about all three

NCRAs because of their exposure to all three companies.

Finally, to the extent that consumers

are working with third parties or consulting educational resources, those third parties and

resources are likely to be aware of all three NCRAs and furnisher obligations, which may also

contribute to this increase.

See Blog, Liane Fiano, Consumer Fin. Prot. Bureau, Protecting your credit during the coronavirus pandemic (Jul.

29, 2020), https://www.consumerfinance.gov/about-us/blog/protecting-your-credit-during-coronavirus-pandemic/

(“Right now, it’s easier than ever to check your credit report more often. That’s because everyone is eligible to get free

weekly online credit reports from the three nationwide credit reporting agencies: Equifax, Experi an, and

Transunion.”).

Check ing credit is often considered among the first steps in purchasing a home. See, e.g., Blog, Erica Kritt,

Consumer Fin. Prot. Bureau, Buying a home? The first step is to check your credit (Jan. 9, 2017),

https://www.consumerfinance.gov/about-us/blog/buying-home-first-step-check-your-credit/ (“[I]f you are thinking

about buying a home this year, let’s make a plan. The first step: Check your credit.”); Freddie Mac, Understanding

your credit, https://myhome.freddiemac.com/buying/understanding-your-credit (“Your credit score and history play

a prominent role in determining your eligibility for a mortgage. As such, it's vital you recognize the value of having

strong credit when buying a home.”).

Several consumers connected their credit scores with the current low interest rate environment explic itly. It is

possible that consumers, aware that low mortgage interest rates are likely to be transitory, are much more motivated

to work on their credit currently. This factor may also be driving consumers to engage third parties.

See, e.g., Consumer Fin. Prot. Bureau, supra note 65 (providing information for how to dispute errors on credit

reports and providing contact information for the NCRAs).

26 BUREAU OF CONSUMER FINANCIAL PROTECTION

FIGURE 2: AVERAGE NUMBER OF CREDIT OR CONSUMER REPORTING COMPLAINTS SUBMITTED PER

COMPLAINT SESSION BY QUARTER

Consumers are increasingly returning to the complaint process

The share of complaints submitted by consumers who previously submitted complaints

increased over the last year. In 2019, approximately 35% of complaints were submitted by

consumers who had previously submitted a complaint (Figure 3). That share increased to more

than 50% of complaints in the most recent quarter. The timing of this transition lags behind the

general increase in complaints that began in March 2020. As discussed in Section 5, many

consumers did not receive a substantive response to their initial complaints about the NCRAs.

These non-substantive responses can increase the total number of complaints when dissatisfied

consumers submit a subsequent complaint with the hope that their original issue will be

addressed. The CFPB has a process for companies to identify—and return—duplicate complaints

when consumers submit a complaint that does not describe or include any new issue, instance,

or information. From January 2020 to September 2021, the NCRAs returned fewer than 1% of

complaints to the CFPB using this process.

FIGURE 3: QUARTERLY SHARE OF CREDIT OR CONSUMER REPORTING COMPLAINTS WHERE

CONSUMER PREVIOUSLY SUBMITTED CREDIT OR CONSUMER REPORTING COMPLAINTS

27 BUREAU OF CONSUMER FINANCIAL PROTECTION

Third parties are using the complaint process

The Dodd-Frank Act directs the CFPB to accept complaints from consumers and their

representatives, which include an agent, trustee, or representative acting on behalf of an

individual.

The CFPB’s online complaint form permits complaints to be submitted by

consumers or third parties acting on their behalf, and it expressly states that third parties must

disclose their involvement.

The form further requires consumers and those acting on their

behalf to attest to the truthfulness of their submission to the CFPB.

When a third party

submits a complaint on behalf of a consumer but lacks authority to act on their behalf,

companies are able to respond to the CFPB via an administrative response process.

Administrative responses allow companies to return complaints to the CFPB with an

explanation as to why the company is not providing a substantive response to the complaint.

Complaints returned with administrative responses are not currently made publicly available in

the Consumer Complaint Database.

The CFPB maintains processes and procedures to protect the integrity of the complaint system.

It has refined, and continues to refine, these processes to detect and discontinue the processing

of complaints where the CFPB has reason to believe that third parties are not disclosing their

involvement in the complaint process.

The more than 3,200 companies that responded to

complaints in 2021 play an important role in informing these processes. When these companies

suspect that an unauthorized third party is involved in a complaint submission, they typically

communicate with the consumer to confirm that they authorized the complaint submission.

See 12 U.S.C. § 5511(c)(2) and 12 U.S.C. § 5481(4).

In Step 5, the online complaint form asks, Who are you submitting this complaint for? Users can select from either

Myself (I am submitting this complaint for myself) or Someone else (The consumer has authorized me to submit this

complaint for them). See Consumer Fin. Prot. Bureau, Complaint Form,

https://www.consumerfinance.gov/complaint/getting-started/.

The complaint form requires that users attest to their submission (“The information given is true to the best of my

knowledge and belief. I understand that the CFPB cannot act as my lawyer, a court of law, or a financial advisor.”).

When a company identifies a complaint that was submitted by or includes an unauthorized third party, they may

use administrative response options and describe the basis for determining the named consumer did not submit the

complaint or authorize submission of the complaint on their behalf.

The CFPB does not request a response in limited circumstances. For example, a company is not required to

respond to a complaint when it is in active litigation with a consumer.

See Disclosure of Consumer Complaint Narrative Data , supra note 14. See also Consumer Complaint Database,

supra note 14, Filtered Results in the Consumer Complaint Database (showing an effect of changing NCRA response

behavior over time; filtered to display complaints closed by the NCRAs’ complaints with Closed with monetary relief,

Closed with non-monetary relief, or Closed with explanation).

Complaints identified under this process are not forwarded to companies and are not currently published in the

Consumer Complaint Database; instead, the CFPB sends a response letter or email to the individual listed on the

submission, informing them that their complaint will not be processed and noting the steps they may take to submit a

complaint.

28 BUREAU OF CONSUMER FINANCIAL PROTECTION

When companies identify complaints submitted without the authorization of the consumer, the

CFPB is able to use this information to prevent future submissions by such unauthorized third

parties.

The NCRAs disregard this process and do not take available steps to distinguish between

complaints authorized by the consumer and those not authorized by the consumer. Instead, the

NCRAs use proxies (e.g., similarity in narrative text) to identify complaints they suspect, though

have not confirmed, were submitted by a third party.

The NCRAs then use this speculative

assessment to justify not responding to the issue(s) raised in a complaint.

The NCRAs do not respond to complaints they suspect are submitted by third parties because

they inappropriately conflate different obligations.

Under existing FTC guidance (and some

case law), NCRAs do not need to investigate disputes submitted by third parties, such as credit

repair organizations.

The FTC guidance concerns disputes submitted under FCRA Section

611(a). The guidance does not address duties to review complaints transmitted by the CFPB

under FCRA section 611(e). This exception in the dispute investigation obligation does not apply

to covered complaints submitted to the CFPB. The CFPB expects that companies, including the

NCRAs, should reasonably review and respond to complaints legitimately submitted by a third

party on behalf of a consumer, and there is no guidance or caselaw precedent to the contrary.

In conversations with consumers who submitted complaints that were identified by the NCRAs

as having met their definition for credit repair, consumers described varied personal

experiences.

Some consumers stated that they had not received any outside assistance, but had

used freely available online resources, such as guidance provided by the CFPB and the FTC.

Others stated that they had completed credit self-help trainings, received guidance from social

media influencers, or relied on other sources of credit education. Other consumers

The CFPB has observed complaints where its sample letters to dispute information on a credit report, and language

recommended by the FTC’s guidance, do not receive a response from the NCRAs because the language met their

criteria for suspected third-party involvement. This suggests that the NCRAs may not be examining the quality or

origin of the forms they identity and highlights the issue with using template language as a proxy for unauthorized

complaint submissions.

Because the NCRAs do not respond to submissions they deem to be from third parties, credit repair organizations

are incentivized to conceal their involvement in the complaint process.

See, e.g., Fed. Trade Comm’n., 40 Years of Experience with the Fair Credit Reporting Act: An FTC Staff Report with

Summary of Interpretations (Jul 2011), https://www.ftc.gov/sites/default/files/documents/reports/40-years-

experience-fair-credit-reporting-act-ftc-staff-report-summary-interpretations/110720fcrareport.pdf (“A CRA need

not investigate a dispute about a consumer’s file raised by a third party – such as a ‘credit repair organization’ defined

in 15 U.S.C. § 1679a(3) – because the obligation under this section [611(a)] arises only where file information is

disputed ‘by the consumer’ who notifies the agency ‘directly’ of such dispute.”); Warner v. Experian Info. Solutions,

Inc., 931 F.3d 917, 921 (9th Cir. 2019). See also Cohen v. Equifax Info. Services, 2019 WL 5200759, at *6 (S.D.N.Y.

Sept. 13, 2019) aff’d, 827 Fed. Appx. 14 (2d Cir. 2020) (disputes submitted by credit repair organization did not

trigger reinvestigation obligation, but dispute submitted by attorney did).

See discussion about data sources supra Section 1.

29 BUREAU OF CONSUMER FINANCIAL PROTECTION

acknowledged that they have used or are currently working with third parties, including credit

repair companies, to try to improve their credit records. Within this last group of consumers,

experiences differed. Some consumers were aware that the third party submitted a complaint on

their behalf. Some said that they were not aware of the complaint itself, but that they had

authorized a third party to act on their behalf after reviewing their credit report. The CFPB

would expect the NCRA to review and substantively respond to the complaints in all of these

scenarios.

As discussed in Section 2, the growth of credit advice providers and influencers, alongside the

diffuse structure of the credit repair marketplace, makes it difficult to reliably distinguish

complaints that are submitted by a consumer acting on their own from those submitted without

the consumer’s knowledge or from hybrid situations in which the consumer plays a role in the

submission but is assisted by a third party without contacting the consumer.

3.2 Consumer issues and harms

The NCRAs began receiving credit and consumer reporting complaints from the CFPB in

October 2012. The CFPB has analyzed issues consumers describe in these complaints for years.

The CFPB has previously highlighted complaints about delays in correcting inaccuracies

problems with the dispute process for identity theft victims

, incorrect debt collection items

appearing on credit reports

, the effect of data breaches

, and incorrect account details

See, e.g., Consumer Fin. Prot. Bureau, Consumer Response Annual Report (Mar. 2015) at 60,

https://files.consumerfinance.gov/f/201503_cfpb_consumer-response-annual-report-2014.pdf (“Consumers express

concern about various inaccuracies and delays in correcting information on credit reports.”).

See, e.g., Consumer Fin. Prot. Bureau, Consumer Response Annual Report (Mar. 2016) at 20

https://files.consumerfinance.gov/f/201604_cfpb_consumer-response-annual-report-2015.pdf (“Consumers report

that credit reporting companies sometimes return findings on their disputes within only a few days, and consumers

question the depth and validity of such quick investigations.”); Consumer Response Annual Report (Mar. 2020),

supra note 11 at 19 (“In their complaints, consumers frequently indicated they were victims of identity theft. These

consumers often provided copies of an identity theft affidavit or other documentation.”); Consumer Fin. Prot. Bureau,

Consumer Response Annual Report (Mar. 2018) at 14,

https://files.consumerfinance.gov/f/documents/cfpb_consumer-response-annual-report_2017.pdf (“Consumers’

complaints described the difficulties they encountered as they tried to resolve their identity theft claims, even when

they provided—to the consumer reporting company, to the company that furnished the information to the consumer

reporting company, or to both—the appropriate identity theft documentation, such as a police report.”)

See, e.g., Consumer Fin. Prot. Bureau, Consumer Response Annual Report (Mar. 2017) at 19,

https://files.consumerfinance.gov/f/documents/201703_cfpb_Consumer-Response-Annual-Report-2016.PDF

(“These complaints frequently involve debt collection items. In some cases, consumers report having paid the debt

appearing on their report. In other complaints, consumers assert the debt is no longer due because the debt is too old

to be enforced in court.”).

See, e.g., Consumer Response Annual Report (Mar. 2018), supra note 93 at 14 (“In 2017, a breach of consumers’

data at Equifax resulted in the submission of a large volume of complaints. Some consumers complained about being

affected by the breach based on the notification they had received from Equifax.”).

30 BUREAU OF CONSUMER FINANCIAL PROTECTION

appearing on credit reports

. The CFPB has also noted specific concerns with inaccurate

reporting for servicemembers, whose need to maintain security clearances can be adversely

impacted by a history of failing to meet financial obligations, being in excessive debt, or having a

high debt-to-income ratio.

Here, the CFPB summarizes some of the most common problems

reported by consumers in their complaints, as well as some of the real-world consequences

associated with those problems.

Consumers submit complaints about incorrect information

The most common credit reporting issue identified by consumers is Incorrect information on

your report. Within that issue, the most common sub-issue, and the largest overall sub-issue by

volume, is Information belongs to someone else. Figure 4 depicts the total volume of the

consumer identified sub-issues that had the largest increases in volume in 2020 over 2019.

See, e.g., Consumer Fin. Prot. Bureau, Consumer Response Annual Report (Mar. 2019) at 20

https://files.consumerfinance.gov/f/documents/cfpb_consumer-response-annual-report_2018.pdf (“[Consumers]

who complained about incorrect information on a report acknowledged the accounts were theirs but disputed specific

details, such as the account status or other information (e.g., open date, outstanding balance).”).

See, e.g., Consumer Fin. Prot. Bureau, Office of Servicemember Affairs Annual Report (May 2021) at 17-18,

https://files.consumerfinance.gov/f/documents/cfpb_osa-annual-report-2020.pdf. See also Consumer Fin. Prot.

Bureau, WARNO: New security clearance guidelines make it more important than ever for servicemembers to

monitor their credit (Aug. 20, 2018), https://www.consumerfinance.gov/about-us/blog/warno-new-security-

clearance-guidelines-make-it-more-important-ever-servicemembers-monitor-their-credit/.

31 BUREAU OF CONSUMER FINANCIAL PROTECTION

FIGURE 4: TOTAL VOLUME OF SUB-ISSUES WITH THE LARGEST PERCENT INCREASE IN VOLUME IN

2020

The majority of complaints about Incorrect information on your report involve consumer

claims of identity theft.

These complaints often include a request to block information under

FCRA Section 605B or a request under FCRA Section 611 for reinvestigations of inaccurate

information resulting from identity theft.

Consumers frequently include with their complaints

FTC fraud affidavits, identifying documents (e.g., copy of a driver’s license), and complete

address information. They also often include formulaic descriptions of their issues or legal

boilerplate language.

Figure 5 illustrates an example complaint describing identity theft. Such complaints—with

boilerplate language and identifying documents—are routinely returned by the NCRAs to the

CFPB using a suspected third-party template.

100

Although the boilerplate language in the

complaint may give rise to a suspicion that a third party is involved, the language on its own is

The NCRAs acknowledge that identity theft is a large—and increasing—area of concern for consumers, especially

because of large data breaches. See, e.g., Annual Report, Experian Annual Report 2020 (Jun. 1, 2020) at 30,

https://www.experianplc.com/media/4001/experian-annual-report-2020.pdf (estimating that 5.66% of US

consumers were victims of identity theft in 2018, which costs US business more than $50 billion dollars annually).

15 U.S.C. § 1681c-2; 15 U.S.C. § 1681i.

100

See discussion infra Section 5.2. For the victims of identity theft who are attempting to address inaccuracies on

their credit, this rejection may further extend the time it takes them to recover. See also Experian, infra note 106.

32 BUREAU OF CONSUMER FINANCIAL PROTECTION

not sufficient to determine that the complaint is unauthorized without additional inquiry of the

consumer by the NCRAs—especially when identifying documents are included in the

submission.

FIGURE 5: ILLUSTRATIVE COMPLAINT DESCRIBING IDENTITY THEFT

PRODUCT

Credit or consumer

reporting: Credit

reporting

COMPLAINT

My FTC Identity Theft Report is attached because I was a victim of identity

theft. I have given my complete approval to this notification and its

implementation. My identity theft affidavit was also mailed to all relevant

credit reporting agencies. I have never provided my written consent or

endorsed anything, identity theft happens, and I have a right to privacy.

▪ [Account *****]

…

ISSUE

Incorrect information on

your report: Information

belongs to someone

else

DESIRED RESOLUTION

Please remove all unauthorized, fraudulent accounts promptly within 4 days

of receipt pursuant to 15 USC 1681-c-2 & 12 CFR 1022, Regulation V, to

prevent further legal action. I have already contacted the respective

companies as well.

ATTACHMENTS

FTC Identity theft affidavit

Copy of driver’s license

List of accounts

Recent utility bill

An increase in complaints about identity theft is not surprising. News outlets, consumer

advocates, industry, and others have all noted the prevalence, risks, and consequences of

identity theft.

101

Following large data breaches, consumers heard stories about identity theft and

101

See, e.g., Rob Lieber, New York Times, How Identity Thieves Took My Wife for a Ride (Apr 27, 2021),

https://www.nytimes.com/2021/04/27/your-money/identity-theft-auto-insurance.html; U.S. PIRG, The Worst

Consumer Problem: Fraud / Identity Theft (Mar. 2, 2021), https://uspirg.org/feature/usp/worst-consumer-problem-

fraud-identity-theft; Shirley Inscoe, Aite Group, U.S. Identity Theft: The Stark Reality (Mar. 2021),

https://www.giact.com/aite-report-us-identity-theft-the-stark-reality/; AARP, Pandemic Proves to Be Fertile Ground

for Identity Thieves (Feb. 5, 2021), https://www.aarp.org/money/scams-fraud/info-2021/ftc-fraud-report-identity-

theft-pandemic.html.

33 BUREAU OF CONSUMER FINANCIAL PROTECTION

how difficult the recovery process can be.

102

Some researchers estimate that in the past two

years, 37% of consumers have been victims of someone using their identity to open a new

account of some type.

103

Research by the Bureau of Justice Statistics suggests that the

unauthorized opening of new accounts and misuse of personal information are the types of

identity theft most likely to go unresolved for long periods of time.

104

For example, greater than

10% of victims were still dealing with the consequences of these types of identity theft 12 months

or more after discovering them.

105

Given an estimated victimization rate of around 1% of adults

in 2018, the pool of victims with unresolved identity theft issues is likely quite large.

106

Consumers submit complaints about attempts to correct errors

The CFPB also receives a large volume of complaints where the consumer identifies their

primary issue as Problem with a credit reporting company's investigation into an existing

problem—e.g., problems with the results, or lack of results, from a prior dispute.

107

Historically,

the CFPB received between two and four times as many complaints about credit report

inaccuracies as complaints about prior investigations. In September 2021, however, the Bureau

received nearly an equal share of complaints about credit report inaccuracies and complaints

about prior investigations.

Figure 6 shows the volume of the three sub-issues with the largest increase in complaints, as a

percentage of January 2018 levels. It illustrates that both Information belongs to someone else

and Personal information incorrect increased significantly. Complaints about prior

investigations, although a much smaller share of complaints in 2018, have seen an even larger

102

See, e.g., Shirley Inscoe, supra note 101 (“Many consumers fear becoming victims of identity theft. Everyone has

heard horror stories of how difficult it is to recover from an imposter stealing your identity, amassing debt, or causing

other problems.”).

103

Id. at 12.

104

See Erik a Harrell, Bureau of Justice Statistics, Victims of Identity Theft, 2018 (Apr. 2021),

https://bjs.ojp.gov/content/pub/pdf/vit18.pdf (“Victims of the misuse of one type of existing account were more

likely to resolve financial and credit problems within 1 day than victims of the opening of a new account only, victims

of the misuse of personal information for other fraudulent purposes only, or victims of multiple types of identity

theft.”) (referenced omitted).

105

Id. at 12.

106

Id. at 12 (research showing that these issues were more likely to result in “credit related” problems, such as higher

interest rates). See also Blog, Experian, What to know about the effects of identity theft (July 2019),

https://www.experian.com/blogs/ask-experian/how-long-can-the-effects-of-identity-theft-last/ (“If someone steals

your SSN to open a credit account in your name, for instance, it can take months to work with the creditor and credit

reporting agencies to dispute it and prove it wasn't you. And if someone manages to use your identity to incur tax debt

and commit other crimes and major violations, it could take years of work to undo the damage.”) .

107

Consumers who identify Problem with a credit reporting company’s investigation into an existing problem can

select from one of five sub-issues: Investigations took more than 30 days; Was not notified of investigation status or

results; Their investigation did not fix an error on your report; Difficulty submitting a dispute or getting

information about a dispute over the phone; Problem with personal statement of dispute.

34 BUREAU OF CONSUMER FINANCIAL PROTECTION

percentage increase. That increasing rate accelerated following changes in complaint responses

at the NCRAs in early 2020.

FIGURE 6: MONTHLY TIME SERIES OF TYPES OF COMPLAINTS WITH LARGEST INCREASES, INDEXED

TO JANUARY 2018

This figure, indexed to January 2018, plots the sub-issues that saw the greatest increase in volume for the

issue categories, Incorrect information on your report and Problem with a credit reporting company's

investigation into an existing problem.

Consumers also describe real (and sometimes, costly) consequences

The issues associated with inaccurate information and problems when attempting to correct

information do not occur in a vacuum. Consumers encounter issues with credit reports as they

navigate their own unique circumstances: seeking new credit, attempting to buy a house,

struggling with a pandemic, among many other scenarios. Conversations with consumers

further underscore that there can be serious consequences when inaccurate information is—and

remains—on a consumer’s credit report. For example:

35 BUREAU OF CONSUMER FINANCIAL PROTECTION

Consumers shared feeling frustrated by a dispute process that has not worked for

them. Consumers often describe how they attempted to dispute inaccurate trade lines with the

NCRAs but were ultimately unsuccessful.

108

For example, according to a consumer:

I was able to verify incorrect information on my credit report, since that moment I

just started the process to get in touch with the Credit Bureaus in an attempt to get

this issue corrected. The sad truth is that I never got an answer. I sent letters for at

least 4 times and never got an update or any kind of correspondence. At this point

I am very much frustrated to keep trying to receive an answer from the Credit

Bureaus.

109

Consumers shared feeling stressed when their attempts to correct inaccurate

information go unanswered. Consumers often report that they are managing other personal

issues and having to repeatedly dispute inaccurate information is adding unnecessary burden to

their lives. For example, according to a consumer:

I mailed all three credit bureaus a letter disputing some inaccurate things on my

credit report. It has been almost 70 days and I have not received a response. I

understand that COVID has caused a lot of things to slow down, but this is a bit too

long waiting for a response. Reviewing some of the things on my [NCRA] report

makes me feel that I have been impacted by their data breach and my personal

information has been used by the wrong person or persons. This has caused me

quite a bit of stress especially dealing with the deaths of my friends due to COVID.

I am asking that these items be removed from my credit report.

110

Consumers shared that they spent time and money attempting to resolve their

issues. Consumers often describe the amount of time it takes them to correct inaccurate

information. Consumers also sometimes report money spent on having documents notarized

and sending documents by registered mail. For example, according to a consumer:

I have sent in three different dispute letters in regards to unidentified accounts.

These dispute letters were dated 6/8/2020, 8/12/2020, and 12/10/2020. I have

108

See also Fed. Trade Comm’n., Report to Congress Under Section 319 of the Fair and Accurate Credit Transactions

Act of 2003 (Jan. 2015), https://www.ftc.gov/system/files/documents/reports/section-319-fair-accurate-credit-

transactions-act-2003-sixth-interim-final-report-federal-trade/150121factareport.pdf (study finding most consumers

who previously reported an unresolved error on one of their three major credit reports believe that at least one pi ece

of disputed information on their report is still inaccurate ).

109

Consumer Complaint 4765358, https://www.consumerfinance.gov/data-research/consumer-

complaints/search/detail/4765358.

110

Consumer Complaint 4749534, https://www.consumerfinance.gov/data-research/consumer-

complaints/search/detail/4749534.

36 BUREAU OF CONSUMER FINANCIAL PROTECTION

spent money printing the letters, getting them notarized and having them mailed

priority. The creditors or bureau has not sent me any documentation with proof

that these accounts were correct. I have spent too much time in regards to the

matter.

111

Consumers discovered that debts they were unaware of had been furnished to

their credit report. Some of these consumers describe discovering these items on their credit

reports when they were making significant financial decisions, such as buying a house. For

example, according to a consumer:

I was in the process of buying a home but when my loan officer checked my credit,

they told me I had a collection on my report. I said collection? You got to be kidding

me! Then he told me it was some kind of a medical bill. So I looked up my credit

report and saw that it was from some company … and I'm telling you that I have

never had any services from these people so I disputed it online. The bureaus so

far have refused to delete it which I have no idea why. I also got a response from

[Company] with 3 bills, all of which said that I did not owe them anything so why

are they on my credit report? I don't even recognize the doctor 's name or the date

of services listed as I never had these services and I think either someone used my

identity to get these medical services or they incorrectly billed me for someone

else's treatment. This account has lowered my score almost 100 points and is

preventing me from buying a house. I need it off my credit ASAP or I am going to

get a lawyer and sue everyone involved.

112

Consumers who reported they were victims of identity theft shared their

difficulties in reaching a resolution and often described lengthy back-and-forth

processes. Resolving inaccuracies related to identity theft can be particularly complicated.

Consumers described being caught in a loop of obtaining documentation and sending it to

NCRAs and furnishers, only to have no updates made to their reports. For example, according to

a consumer:

I had to dispute back and forth multiple times in writing with [NCRA] in 2017 to

remove an address in Arizona that was fraudulent as I have never lived in Arizona

and it was tied to someone stealing my credit to open an account (which I reported

to the police). I have a written report from [NCRA] in 2017 stating that they agreed

111

Consumer Complaint 4118528, https://www.consumerfinance.gov/data-research/consumer-

complaints/search/detail/4118528.

112

Consumer Complaint 4648298, https://www.consumerfinance.gov/data-research/consumer-

complaints/search/detail/4648298.

37 BUREAU OF CONSUMER FINANCIAL PROTECTION

the address is fraudulent and had removed it. In June 2020, they put that same

address back on my credit report. I filed a complaint with CFPB and [NCRA]

removed the incorrect address. This year (2021), I see that the same address has

been returned to my credit report by [NCRA].

113

Consumers described being caught between furnishers and the NCRAs. NCRAs rely

on furnishers to provide accurate information. When consumers are victims of identity theft,

they are often the only ones who conclusively know whether they applied for new accounts.

Although the NCRAs or data furnishers may notice signs of identity theft, consumers are the

ones often left to resolve the problem. For example:

I was the victim of fraud/identity theft and someone opened a credit card in my

name. … I reached out to [company] and spoke with two different people, and they

did offer to close the account, but I asked them to remove the credit inquiry from

my credit file. They stated to file a report with the credit bureaus. I felt like they

should have done more.

114

Consumers shared that instead of having their issues resolved from the dispute

process, they simply gave up. Some consumers, resigned that they had done everything they

could, described living with incorrect information on their credit report. For some consumers

who had a debt collection item on their report, it sometimes meant paying a bill they said they

did not owe to try to make their problems go away. For example, according to a consumer:

This case is about abusing credit systems and collecting to force consumers ' hands

to pay regardless of whether or not they are truly at fault. My wife and I moved

from [Company A] to [Company B] in 2019. [Company A] claimed we still owed

them [$220.00]. They could not provide a statement with the charges, and our

account online showed [$0.00] balance when we left them. After going back and

forth they simply turned the matter over to a collection agency, who then, in turn,

reported to [NCRA] to force us to pay while we still did not get a statement of fact.

We eventually paid the [$220.00] last year to make this go away, but this cost my

credit score 60+ points. We filed a complaint with [NCRA] but they use their

113

Consumer Complaint 4732020, https://www.consumerfinance.gov/data-research/consumer-

complaints/search/detail/4732020.

114

Consumer Complaint 4554886, https://www.consumerfinance.gov/data-research/consumer-

complaints/search/detail/4554886 (permission to publish narrative obtained from the consumer).

38 BUREAU OF CONSUMER FINANCIAL PROTECTION

bureaucratic process to justify keeping this on my report. This entire process is

stacked against us as consumers ...

115

Problems experienced in credit reporting are not limited to any one community; however, recent

CFPB research suggests that these burdens may be affecting communities differently. As noted

in a recent Bureau report, communities of color and lower income communities tend to submit

complaints to the CFPB about credit reporting at a higher rate than other communities.

116

This

finding is consistent with other recent work analyzing demographic characteristics of consumers

who dispute items on their credit report by examining a sample of credit report records obtained

from one of the NCRAs.

117

115

Consumer Complaint 4768092, https://www.consumerfinance.gov/data-research/consumer-

complaints/search/detail/4768092.

116

See Lewis Kirvan and Robert Ha, supra note 50.

117

See Ryan Sandler, Disputes on Credit Reports, Consumer Credit Trends (Nov. 2021),

https://files.consumerfinance.gov/f/documents/cfpb_disputes-on-consumer-credit-reports_report_2021-11.pdf

(finding consumers who have disputes reported were more likely to reside in census tracts that were majority Black or

majority Hispanic).

39 BUREAU OF CONSUMER FINANCIAL PROTECTION

4. Fair Credit Reporting Act

Section 611(e)

Congress substantively amended the FCRA with the passage of the Fair and Accurate Credit

Transactions Act of 2003 (FACT Act).

118

This Section briefly summarizes the FACT Act,

including the resulting complaint handling responsibilities.

4.1 The Fair and Accurate Credit

Transactions Act

The FACT Act created new responsibilities for CRAs, users of consumer reports, and furnishers.

It also improved access to consumer report information to help increase the accuracy of data in

the consumer reporting system and contained provisions to address identity theft.

119

Importantly for the purposes of this report, the FACT Act amended FCRA Section 611 by adding

subsection (e).

120

This subsection requires federal agencies—initially the FTC and later the

CFPB—to “compile” and “transmit” certain complaints to the NCRAs.

121

Specifically, the

complaints that must be compiled and transmitted are those that meet two criteria: (1) the

consumer states that their file maintained by a NCRA contains incomplete or inaccurate

information, and (2) the consumer appears to have disputed the completeness or accuracy with

the NCRA or otherwise utilized the procedures under FCRA Section 611(a). These complaints

are referred to in this report as “covered complaints.” FCRA Section 611(e) also requires a NCRA

118

Pub. L. No. 108-159, 117 Stat. 1952 (FACT Act).

119

See, e.g., Fed. Trade Comm’n., supra note 90 at 3 (For example, the FACT Act established a national fraud alert

system, required merchants to truncate account numbers on electronic credit/debit card receipts, and ordered

agencies to promulgate rules on proper disposition of consumer report information and on what companies should do

to respond to the “red flag” indicators of identity theft.).

120

FACT Act § 313.

121

15 U.S.C. § 1681i(e)(1).

40 BUREAU OF CONSUMER FINANCIAL PROTECTION

to review each covered complaint to determine whether all legal obligations under the FCRA

(including any obligation imposed by an applicable court or administrative order) have been

met with respect to the subject matter of the complaint. Further, the NCRAs must provide

reports on a regular basis to the Bureau regarding the “determinations of and actions taken by”

the NCRA, if any, in connection with their review.

122

The 611(e) process provides an opportunity for consumers to escalate, through a complaint to

the CFPB, previously filed disputes about incomplete or inaccurate information on their reports

such that a NCRA must review the complaint to ensure that its legal obligations have been

met.

123

Notably, these requirements appeared in Title III of the FACT Act—the title devoted to

enhancing the accuracy of consumer report information—indicating the close relationship

between effective handling of consumer disputes and the accuracy of reports.

4.2 Transmission of complaints and data

collection

The FTC was responsible for compiling and transmitting covered complaints pursuant to FCRA

Section 611(e) to the NCRAs beginning in 2004. The CFPB assumed this responsibility in 2011

and currently manages this process.

FTC complaints program

For more than twenty years, the FTC has collected information on consumer complaints.

124

The

FTC makes this information available to its law enforcement members in Consumer Sentinel, a

database that provides secure access to complaints received by the FTC and other data

contributors.

125

122

15 U.S.C. § 1681i(e)(3).

123

See, e.g., Fed. Trade Comm’n., supra note 2 at 4 (“The program was intended to enable consumers to obtain a

second review of their complaints when they remain dissatisfied after having completed the dispute process with the

CRAs … .”).

124

See Fed. Trade Comm’n., Annual Report (1998),

https://www.ftc.gov/sites/default/files/documents/reports_annual/annual -report-1998/ar1998_0.pdf (“In fiscal

year 1998, its first full fiscal year of operation, the Center answered approximately 116,500 consumer complaints and

inquiries and added them to the Consumer Information System database. Overall, the database has grown to over

314,000 entries.”). The FTC now refers to complaints as reports.

125

See Fed. Trade Comm’n., Consumer Sentinel Network, https://www.ftc.gov/enforcement/consumer-sentinel-

network .

41 BUREAU OF CONSUMER FINANCIAL PROTECTION

When the FTC delivered its 611(e) report to Congress in 2008, a report covering credit report

complaints received from 2004 to 2007, it reported that the “Commission uses complaints for

general monitoring of industry, enforcement target selection, and preliminary information that

might, with further factual development, reveal or help prove a law violation.”

126

But complaints

maintained in the database were not, as a matter of course, provided to regulated entities.

Instead, Consumer Sentinel was a resource for law enforcement.

Following the passage of the FACT Act, the FTC’s new NCRA complaint referral program

required significant divergence from the FTC’s existing complaints process.

127

Section 611(e)

required the Commission to develop a process to identify relevant complaints from Consumer

Sentinel—a labor intensive process—and then transmit those complaints to the NCRAs.

128

order to put this new process into operation, the FTC entered into memorandums of

understanding with the NCRAs and, over several iterations, standardized a new data

collection.

129

The FTC also opted to limit the number of complaints for which they would require

the NCRAs to provide reports.

130

The reports provided by the NCRAs to the FTC under this process provided limited summary

information about the compliance reviews required by Section 611(e)(3)(A). But from 2004 to

2007, the reports revealed a high rate of consumers having items on their reports corrected. In

more than 17,000 items disputed in complaints reviewed by the NCRAs, 10,600 were resolved

as the consumer requested.

131

Transfer from the FTC and the CFPB complaints program

On July 21, 2011, the Dodd-Frank Act transferred responsibility for compiling and transmitting

covered complaints from the FTC to the CFPB. In September 2011, the FTC agreed to assist the

CFPB by compiling complaints covered by 611(e) and sending them to CFPB until the CFPB

could create and launch its own credit reporting complaint intake system. In October 2011, the

CFPB began receiving the consumer complaints on a monthly basis from the FTC.

126

Fed. Trade Comm’n., supra note 2 at 3.

127

Id. at 1.

128

Id. at 3.

129

Id.

130

Id. at 4.

131

Id. at 7.

42 BUREAU OF CONSUMER FINANCIAL PROTECTION

In October 2012, the CFPB began accepting credit reporting complaints, including both covered

complaints

132

and complaints about other credit reporting issues. The CFPB’s complaint process

was developed to scale with increasing complaint volume. It emphasized web-based intake of

complaints, facilitated easy transmission of complaints to covered entities, and easy return of

complaint responses to the CFPB and consumers. Because this process closely resembles the

requirements of 611(e), the CFPB’s existing complaints process could fulfill 611(e)’s transmission

and reporting requirements.

Initially, only covered complaints where the consumer could provide a dispute tracking number

were transmitted to the NCRAs and required a response, but this requirement proved too

stringent. Some consumers complained about difficulties they encountered when attempting to

submit disputes to the NCRAs. Other consumers had previously submitted disputes but no

longer were able to identify their tracking number. To remedy this constraint, the CFPB made

the decision to accept all covered complaints and to ask consumers about prior attempts to

correct their issues with the company.

133

This additional data collection from consumers allowed the NCRAs to identify covered

complaints so that they could initiate the reviews required by 611(e)(3)(A). In their responses,

NCRAs were also asked to identify those complaints where they had received a previous dispute

about the items in the complaint.

134

This data on the consumers’ prior disputes, along with

structured information about a complaint’s closure category (i.e., what actions the NCRAs took)

and the company’s narrative response to the consumer, allowed the CFPB to perform its analysis

of complaints and, through its Consumer Response Annual Report, fulfill its requirement to

provide information gathered under Section 611(e) to Congress.

135

132

See discussion infra Section 5.

133

The online complaint form asks consumers, Have you already tried to fix this problem with the company? See

discussion supra Section 2.3. Beginning in 2018, the CFPB added additional language to its website, encouraging

consumers to attempt to resolve complaints with companies directly before submitting a complaint. See Consumer

Fin. Prot. Bureau, Consumer Financial Protection Bureau to Enhance Consumer Complaint Database (Sep. 18,

2019), https://www.consumerfinance.gov/about-us/newsroom/bureau-enhance-consumer-complaint-database/.

134

In 2017, the CFPB began ask ing the NCRAs to distinguish between prior disputes they received directly, and

updates from furnishers received through e-OSCAR.

135

See Consumer Fin. Prot. Bureau, Consumer Response Annual Report (Mar. 2014),

https://files.consumerfinance.gov/f/201403_cfpb_consumer-response-annual-report-complaints.pdf; Consumer

Response Annual Report (Mar. 2015), supra note 92; Consumer Response Annual Report (Mar. 2016), supra note 93;

Consumer Response Annual Report (Mar. 2017), supra note 94; Consumer Response Annual Report (Mar. 2018),

supra note 93; Consumer Response Annual Report (Mar. 2019), supra note 96; Consumer Response Annual Report

(Mar. 2020), supra note 11; Consumer Response Annual Report (Mar. 2021), supra note 12.

43 BUREAU OF CONSUMER FINANCIAL PROTECTION

In short, use of the CFPB’s existing complaint process allowed the NCRAs and the CFPB to meet

their 611(e) obligations without imposing the significant burden, to both the CFPB and NCRAs,

of an additional complaint transmission process and separate data collection.

The use of the CFPB’s complaint system to facilitate its obligations under Section 611(e) also

provides several ancillary benefits:

▪ Information for complaints broken down by sub-issue, response time and by company

response category, allowing comparison of covered complaints with other complaints

▪ The capability to perform keyword searches in CRA responses, complaint narratives, and

attachments through search applications

▪ The ability to use consumer information to identify issues affecting specific sub-

populations, such as servicemembers or older consumers

▪ The ability to ask follow-up questions to consumers and companies, using the secure

complaint management system

▪ High quality, secure data management without the need to create an additional database

▪ Real-time, regular reports about the NCRAs’ actions in response to complaints

136

See 15 U.S.C. § 1681i(3)(B) (“provide reports on a regular basis to the Bureau regarding the determinations of and

actions taken by the consumer reporting agency, if any, in connection with its review of such complaints”).

44 BUREAU OF CONSUMER FINANCIAL PROTECTION

5. NCRA complaint response

analysis

As discussed in Section 4, FCRA Section 611(e)(3) directs a NCRA to review all complaints

transmitted to it by the CFPB about incomplete or inaccurate information where a consumer

appears to have previously disputed the information with the NCRA.

137

The CFPB has

operationalized the 611(e)(3)(A) review requirement and the 611(e)(3)(B) reporting requirement

for two issues—Incorrect information on your report and Problem with a credit reporting

company’s investigation into an existing problem—and where consumers indicated they

previously attempted to fix the problem with the NCRA. The CFPB refers to this subset of

complaints as covered complaints in this report.

138

Of the more than 760,000 complaints transmitted by the CFPB to the NCRAs between 2018 and

2020, more than 83% were covered complaints (Figure 7). Most complaints indicate that the

consumer attempted to previously resolve their issues prior to submitting a complaint. The

remaining discussion and analysis in this report will focus on covered complaints.

FIGURE 7: PERCENT OF COVERED COMPLAINTS (THOSE REQUIRED TO BE TRANSMITTED TO THE

NCRAS AND RECEIVE 611(E) TREATMENT)

137

15 U.S.C. § 1681i(e)(3).

138

See Terminology supra Section 1.

45 BUREAU OF CONSUMER FINANCIAL PROTECTION

5.1 Previous dispute attempts

As part of the complaint process, the CFPB asks the NCRAs: Does your company have a record

of the consumer disputing this issue in the past? This inquiry is important to the review

required by 611(e)(3). To determine whether legal obligations have been met, as required by

611(e), the initial step of identifying past dispute submissions and associating those submissions

with the consumer is critical.

Table 2 lists (1) the counts of covered complaints and (2) the counts of those complaints in

which the NCRA responded that it had a record of the consumer previously disputing by year. As

covered complaint volumes have increased from 2018 to 2020, Equifax responded that it had a

record of a prior dispute in an increasing number of those complaints. Experian responded that

it had a record of a prior dispute in a relatively constant number of those complaints.

TransUnion responded that it had a record of a prior dispute in a decreasing number of those

complaints.

TABLE 2: COUNTS OF COVERED COMPLAINTS AND COUNTS OF COVERED COMPLAINTS IN WHICH

THE NCRA RESPONDED ‘YES’ WHEN ASKED IF THE CONSUMER HAD PREVIOUSLY DISPUTED

(IN THOUSANDS)

2018

2019

2020

Covered

complaints

NCRA

record of

prior dispute

Covered

complaints

NCRA

record of

prior dispute

Covered

complaints

NCRA

record of

prior dispute

Equifax

22.8

15.3

31.6

26.1

69.4

48.6

Experian

21.7

15.0

28.5

16.0

78.4

15.4

TransUnion

20.9

14.4

29.9

6.7

76.9

5.4

Figure 8 shows the rate at which companies selected “Yes” in response to this question, which

has declined precipitously at Experian and TransUnion. Because more than 85% of covered

complaints involve the same consumer submitting complaints about multiple NCRAs, these

differences are not likely explained by the composition of consumers submitting complaints.

Stated another way, it is unlikely these differences are caused by more consumers previously

disputing with Equifax than TransUnion or Experian. Instead, these differences are likely

caused by processes the NCRAs have instituted for responding to complaints. The CFPB believes

that the data collected from the NCRAs in response to this question no longer accurately

represents the share of consumers who have previously disputed with the NCRAs.

46 BUREAU OF CONSUMER FINANCIAL PROTECTION

FIGURE 8: MONTHLY SHARE OF COMPLAINTS WHERE THE NCRA RESPONDED ‘YES’ WHEN ASKED IF

THE CONSUMER HAD PREVIOUSLY DISPUTED

Another complicating factor in this analysis is the degree to which consumers have previously

attempted but failed to submit a dispute with the NCRA. New or more stringent authentication

or screening procedures at the NCRAs with regard to handling disputes sent via credit repair

organizations or other third parties could result in a lower rate of consumers who have

previously succeeded in filing a dispute, even where a similar number of consumers have

previously attempted to dispute. It is possible that some portion of the divergent responses to

the question of whether the consumer previously disputed are the result of these different

rejection rates of disputes before the complaint process. But, given relatively even complaint

volume between the NCRAs, this explanation likely does not explain it completely.

5.2 NCRAs’ changes to complaint

responses

In 2020, the NCRAs significantly changed the way they responded to complaints. This change

preceded the bulk of the increase in complaint volume discussed in Section 3.1 and, subsequent

to these changes, an increasing share of complaints submitted by consumers were not fully

addressed by the NCRAs. Instead, around April 2020, approximately half of covered complaints

received a response in which the NCRAs indicated a suspicion of third-party involvement and

stated no further action would be taken. Another 30% of covered complaints received a response

47 BUREAU OF CONSUMER FINANCIAL PROTECTION

where the NCRAs indicated the complaint will be handled as a dispute without additional detail.

There are significant company-level differences, which are discussed below.

These complaint response changes are seemingly similar to the mail processing standards used

by the NCRAs for handling disputes and described in several recent cases. For example, in one

case, a NCRA’s mail process is described as employees reviewing submissions for a variety of

characteristics to determine whether it qualifies as “suspicious.”

139

Similarly, NCRAs review

complaints to determine if they meet the criteria of a credit repair organization.

140

These

changes were initiated by the NCRAs without providing notice to the CFPB. In complaint data,

these changes show up as few custom responses that are tailored to a consumer’s complaint;

instead, the NCRAs provide high-volume template (or form) company responses in which the

CFPB and consumers often do not receive a substantive response to the complaint.

141

Table 3

summarizes the types of high-volume company responses provided to the CFPB.

139

See Turner v. Experian Info. Sols., Inc., No. 3:16 CV 630, 2017 WL 2832738, at *1 (N.D. Ohio June 30, 2017), aff'd,

No. 17-3795, 2018 WL 3648282 (6th Cir. Mar. 1, 2018).

140

See description infra Table 3.

141

For the purposes of this report, the CFPB considered form responses to be those that are identical to other

responses provided more than 5,000 times. Because there are a number of templates that have been used less

frequently, the actual rate of complaints that receive non -specific responses is higher than what is reported in Table 3.

48 BUREAU OF CONSUMER FINANCIAL PROTECTION

TABLE 3: TYPES OF COMPANY RESPONSES

Type

Description

Example response language

Non-

templated

response

A response that does not use

a high-volume template. This

type includes lower volume

templates and complaints in

which the consumer received

a custom response.

We initiated an investigation into the items

and the results are below: We have

researched the credit account. Account ####

The results are: This creditor has verified to

[NCRA] that the current status is being

reported correctly. This creditor has verified

to [NCRA] that the prior paying history is

being reported correctly.

Referred to

dispute

channel

template

Complaint response

indicates that complaint will

be referred to dispute

channel without additional

detail.

After careful review, we have determined

your complaint includes a dispute of

information appearing on your credit report;

therefore, we have forwarded your complaint

to our consumer relations center for

processing. You will receive your results

within sixty (60) days from the date you

submitted your complaint to the CFPB.

Request for

information

template

Complaint response

indicating there is a

mismatch between

information provided in the

complaint and the

information available in the

consumer’s file.

At this time, the information you have

provided does not match our records. In

order to proceed, we have mailed you a

separate request for additional documents

you may provide as documented proof by

mail to confirm you are the rightful owner.

Third-party

template

Complaint response

indicating the NCRA

suspects third-party

involvement.

This complaint meets the criteria of a credit

repair organization. It either has the same

email address for multiple consumers, same

naming convention or similar narrative in

the attachment or it has the same and/or

similar narratives as 20+ other complaints

within a 45-day period.

Of these, most common is the third-party template response. The third-party template

sometimes describes, in general terms, the criteria used by the NCRAs to identify potential

49 BUREAU OF CONSUMER FINANCIAL PROTECTION

third-party involvement. The criteria described by all three NCRAs are quite similar. According

to their complaint responses, the NCRAs generally look for one or more of the following:

▪ similar or identical language in complaint narratives;

▪ same naming convention or similar or identical language in the attachments;

▪ email address associated with multiple consumers; or

▪ certain uses of block requests under FCRA Section 605B (Block of information resulting

from identity theft).

The template responses do not identify the specific criterion that applied to the complaint and

some responses simply state that a submission was suspicious. The application of these criteria

results in different outcomes for consumers across the NCRAs.

The CFPB monitors complaints to identify patterns in the sources of complaints. Figure 9 shows

how each of the NCRAs responded to consumers’ complaints from an identifiably unique source.

Notably, the NCRAs arrive at markedly different conclusions. As shown in Figure 9, since March

2020, consumers largely have not received responses that address the issues described in their

complaints and, instead, receive template responses. Overall, only a third of these identifiably

unique consumers received a tailored complaint response that addressed the issues described in

their complaints.

FIGURE 9: SHARE OF COMPLAINTS BY RESPONSE CATEGORY FOR COMPLAINTS FROM IDENTIFIABLY

UNIQUE SOURCES SINCE MARCH 15, 2020

All three companies provided template responses to a large portion of complaints from unique sources.

Experian, for example, provided a template response to nearly 44% of identifiably unique covered

complaints.

50 BUREAU OF CONSUMER FINANCIAL PROTECTION

Another large share of complaints receives responses indicating that the NCRA has forwarded

the complaint to its dispute channel (Table 3, Referred to dispute channel template). Equifax

and TransUnion use this template response, whereas Experian does not. Because Equifax and

TransUnion close the complaint before the dispute investigation is complete and before the 60

days available to respond to a complaint, the outcomes of the dispute investigation are not made

available to the CFPB through the complaint process. Thus, the CFPB is unable to determine

whether the NCRA completed a reinvestigation or addressed the consumer’s issue. It is also

possible that many of these complaints later received a third-party screen, based on the

screening procedures used by the NCRAs in their dispute channel.

142

The CFPB expects companies to provide complete, accurate, and timely responses to complaints,

including complaints where the NCRAs have an obligation to do so under FCRA Section

611(e).

143

The information contained in the third-party template and the referred to dispute

channel template does not meet these expectations.

144

Changes to the NCRAs’ complaint responses occurred near in time

Figure 10 shows the NCRAs’ use of these template responses. The timing of these changes is

notable. While TransUnion began forwarding complaints to its dispute channel in 2018, all

three NCRAs began making significant changes in April and May of 2020. Experian and

TransUnion, for example, began frequently using third-party template responses. And Equifax

began forwarding complaints to its dispute channel until it, too, began using third-party

template responses in 2021. In all cases, the absolute volume of complaints that received a non-

templated response declined.

142

See, e.g., Turner v. Experian Info. Sols., Inc., supra note 139 (case describing screening procedures used by one of

the NCRAs).

143

See Consumer Response Annual Report (Mar. 2021), supra note 12 at 16.

144

See CFPB complaint process supra Section 2.3.

51 BUREAU OF CONSUMER FINANCIAL PROTECTION

FIGURE 10: MONTHLY VOLUME OF RESPONSES FROM THE NCRAS FOR EACH TYPE OF RESPONSE.

DESCRIPTION OF THE RESPONSE TYPES IS PROVIDED IN THE TABLE ABOVE.

Response types for the NCRAs are determined by classifying the response language provided by the

companies in their narrative responses to complaints.

The time NCRAs took to close complaints decreased significantly

The CFPB’s complaint process requests that companies provide an interim response when a

complaint cannot be closed within 15 calendar days and a final response within 60 calendar

days. Before March 2020, Equifax and Experian took, on average, more than three weeks to

close complaints. By mid-2020, however, all three NCRAs closed their complaints in fewer than

10 calendar days (Figure 11). Experian, in particular, closed complaints within just a few days.

This decrease in processing time is consistent with the increased use of template responses.

52 BUREAU OF CONSUMER FINANCIAL PROTECTION

FIGURE 11: MONTHLY MEAN NUMBER DAYS BETWEEN CONSUMER SUBMITTING COMPLAINT AND

COMPANY PROVIDING A RESPONSE, 2017 TO 2021

Reference line provided for March 2020—the month the President declared a national emergency as a

result of the coronavirus (COVID-19) pandemic.

Reports of relief provided by the NCRAs significantly decreased

As discussed in Section 2.3, companies select a closure category that best describes their

response. For example, correcting a consumer’s credit report in response to their complaint

would be Closed with non-monetary relief because such an outcome provides objective relief to

the consumer. Alternatively, a response stating that the trade line was reported as accurate

would be Closed with explanation because no specific, verifiable monetary or non-monetary

relief was provided to the consumer.

Historically, the CFPB has been able to analyze the outcomes of complaints—specifically, relief

provided to consumers by the NCRAs. These “regular reports” about the actions taken in

response to covered complaints provided the CFPB with important information that was

annually shared with Congress.

145

Figure 12 illustrates how the recent changes in NCRA

complaint response behavior affected the reporting of actions taken by the NCRAs. In 2021, the

145

See 15 U.S.C. § 1681i(e)(5).

53 BUREAU OF CONSUMER FINANCIAL PROTECTION

NCRAs reported relief in less than 2% of complaints down from nearly 25% of complaints in

2019.

FIGURE 12: QUARTERLY SHARE OF COVERED COMPLAINTS THAT HAVE RECEIVED RELIEF VERSUS

OTHER RESPONSE TYPES FOR THE NCRAS 2017-2021

The absolute volume of reported relief has also declined precipitously (Figure 13). TransUnion,

where process changes preceded those at the other two NCRAs, had further declines and now

reports providing relief in response to fewer complaints each week despite increasing complaint

volume (compare providing relief in more than 20 complaints per week in 2018 to less than 10

complaints per week in 2021). Equifax has not reported relief in response to any complaints for

the past two quarters. Experian, which previously reported the highest volume of relief, now

reports relief in fewer complaints. Relief provided in connection with credit or consumer

reporting complaints directed to furnishers, which are not subject to FCRA Section 611(e) but

experienced a similar trend in increasing complaint volume, is included as a reference to

illustrate relief trends with respect to those companies over the same time period.

54 BUREAU OF CONSUMER FINANCIAL PROTECTION

FIGURE 13: WEEKLY COUNT OF COMPLAINTS WITH RELIEF, BY DATE COMPANY RESPONDED

Relief rates fell overall. For Experian and Equifax, rates of relief dropped significantly over just a few weeks.

Because the volume of relief provided by the NCRAs is significantly different, scales are not consistent

among the charts. Comparison bars are provided to show relative size for easier comparison. Furnishing

complaints are included as a reference; furnishing complaints were filtered using the same criteria as

covered complaints (i.e., consumers (1) selected Incorrect information on your report and Problem with a

credit reporting company's investigation into an existing problem and (2) indicated they previously

attempted to fix the problem with the company).

55 BUREAU OF CONSUMER FINANCIAL PROTECTION

6. Conclusion

The FCRA imposes obligations on certain complaints transmitted to the NCRAs by the CFPB.

For years, the CFPB’s complaint process successfully transmitted complaints to the NCRAs, and

they generally provided substantive responses that gave the CFPB insights into how they

handled complaints. In 2020, Equifax, Experian, and TransUnion changed the way they

respond to complaints.

At least one NCRA testified to Congress that it is responding completely and accurately to

complaints transmitted by the CFPB.

146

The CFPB’s complaint analysis concludes otherwise.

In what has been a record period for credit or consumer reporting complaint volume, the CFPB’s

analysis reveals that the NCRAs are closing complaints faster and with fewer instances of relief.

The NCRAs discard most complaints based on unsubstantiated conclusions of suspected third-

party involvement and on a flawed application of guidance that does not apply to CFPB

complaints.

In their complaints to the CFPB, consumers describe the serious consequences that occur when

inaccurate information is—and remains—on a consumer’s credit report. Consumers describe a

system that is not working for them. Consumers express frustration about the time and energy

they spend trying to correct information that may affect their ability to buy a home or obtain

credit. Consumers sometimes describe how they plan on giving up on correcting their credit or

paying debts that they do not owe just to make the problem go away.

The NCRAs’ actions, and inactions, have large implications for consumers’ financial well-being

and the economy more broadly. The FCRA requires the NCRAs to conduct a review of certain

complaints sent to them by the CFPB and to report their determinations and actions to the

CFPB. The NCRAs’ responses to these complaints raise serious questions about whether they are

unable—or unwilling —to comply with the law. The CFPB will use its authorities to meet its

statutory objectives and to ensure that consumers receive quality responses to their complaints.

146

See, e.g., House Hearing on Consumer Credit Reporting, supra note 4 (Testimony of Sandy Anderson, Experian,

“We responded completely and accurately to all consumer complaints to the CFPB complaint portal. ”).