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CFPB fines credit reporting agency $15M for alleged violations

January 24, 2025

On January 17, the CFPB issued a consent order settling allegations that a consumer reporting agency (CRA) violated the FCRA and engaged in unfair acts and practices, violating the CFPA. The CFPB imposed a $15 million civil money penalty on the CRA. The order highlighted the CRA’s reliance on internal platforms and the external e-OSCAR system for processing disputes, which limited consumers’ ability to “describe” disputes.

The Bureau alleged that the CRA failed to adequately reinvestigate consumer disputes due to ineffective systems, flawed processes with known limitations, loss of information, and excessive deference to furnishers. The Bureau further alleged that the CRA violated the FCRA by failing to maintain reasonable procedures to ensure consumer information accuracy when processing consumer disputes; and failing to timely block identity-theft-related information in consumer files and provide consumers with required identity theft notifications. Also, the Bureau alleged the CRA failed to assure the accuracy of consumer information when it supposedly provided inaccurate credit scores and credit attributes to lenders; and that the CRA committed unfair acts and practices when it provided inaccurate credit scores and credit attributes to lenders and others — both were because of a coding error.

The order mandated several affirmative requirements, such as creating reasonable policies and systems for dispute reinvestigation and improving consumer communications. In a related stipulation, also dated January 17, the CRA did not admit to any wrongdoing but consented to the issuance of the consent order to resolve the matter.