According to the Federal Trade Commission report nearly 20 percent of consumers had errors in at least one of their credit files.

The answer is “yes”

credit reporting errorEarlier this year the Federal Trade Commission completed a multiyear study of credit reporting errors and found that nearly 20 percent of consumers had errors in at least one of their credit files, and that 13 percent saw an improvement in their scores when the errors were corrected.

Confused files, like Ms. Thomas’s, are also common. A 2012 study by The Columbus Dispatch analyzed 30,000 complaints to the F.T.C.; of those, 1,500 people reported that their files included someone else’s information. Nearly a third said the credit agencies did not correct the errors, despite being asked to do so.

Most egregious, almost 200 people said their reports showed them as deceased.

Consumer complained to a credit bureau reporting that he is dead. Was told that it had investigated and verified the report of his death.

credit reporting errorOnly now, decades after Congress established the reasonable-investigation requirement, are credit bureaus experimenting with sending lenders the actual consumer complaints. In theory, the Consumer Financial Protection Bureau could do more to make the investigations more aggressive — but unfortunately, the bureau, still in its infancy and embroiled in disputes over whether its director was properly appointed, hasn’t done so.

In short, it’s up to Congress to act to curb credit reporting errors.

It could, for one thing, improve accuracy by imposing liability on lenders for failing to conduct investigations when consumers complain to them. As it stands, consumers cannot sue lenders for failing to investigate without first complaining to a credit bureau, something consumers may not know to do. If consumers had greater rights against lenders, no doubt lenders would be more cautious about the accuracy of their records.

Click here to read more…

40 Million Mistakes: Is your credit report accurate? a 60 Minutes expose’, February 10, 2013

A mistake on your credit report can cost you money. It can increase the interest you pay on loans, prevent you from getting a mortgage or buying a car, landing a job or getting a security clearance. Its not uncommon. A new government study to be released tomorrow indicates as many as 40 million Americans have a mistake on their credit report. Twenty million have significant mistakes.

And our own investigation of the credit reporting industry shows that those mistakes can be nearly impossible to get removed from your record.
Click here to see the show…

We have several videos on our web site.  Below is one that might be of interest:
Additional resources:

 

CLICK TO OUR WEBSITE

 

MUSINGS BY DIANE:

“The credit reporting agencies have a special list of members of Congress, other lawmakers, special dignitaries and people in powerful positions – economic or political. That list is used to insure these folks will not have errors on their credit reports.  That way they don’t feel the impact that 40 million people feel due to the credit reporting errors. 

You can only hope that these ‘special people’ have someone close to them feel the pain caused by these credit reporting errors, like the inability to buy a house, finance a surgery or rent an apartment as a result of an error on your credit report.

596 words|3.1 min read|Categories: Bankruptcy Articles & Resources, Consumer Financial Protection Bureau, Consumer Issues, Credit Report, Debt Relief Agencies, General Legal Issues|By |Published On: August 24th, 2013|Last Updated: September 29th, 2022|

Share this article

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Martindale-Hubbell Award
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Martindale-Hubbell Award
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau

In Case You Missed It

  • Published On: July 3, 2024

    The Consumer Financial Protection Bureau (CFPB) released a report delving into the hidden costs consumers are forced to pay for health savings accounts. May 1, 2024 The following is a reprint from CFPB's website (provided [...]

  • Into the Shadows: Unraveling the Dark World of Fraud, Schemes, and Scams The Sneaky World of Fraud and Scams: How They Work and Why You Should Be Careful Fraud and [...]

  • Published On: March 30, 2024

    After 100 Years of Protecting Homeowners, Arizona's Law Changes to Give Creditors New Rights to Take Your Home Depending on the value of your home, creditors can now take it if [...]

  • Bankruptcy is a complex process that can have significant implications for your business and personal finances. Before considering business bankruptcy as an option for your struggling business, it's crucial to understand the potential pitfalls [...]