Credit reporting complaints ‘skyrocket’ to new record, report finds

InvestigateTV - A recent report by the U.S. Public Interest Research Group (US PIRG) found complaints against credit reporting agencies nearly doubled from 2021 to 2022.

According to the report, credit reporting complaints made up 75% of the more than 800,000 complaints made by consumers last year to the Consumer Financial Protection Bureau.

“Consumers are complaining that the credit reporting system is stacked against them, because the credit reporting bureaus don’t listen, don’t fix mistakes and don’t reply to consumers at all,” Ed Mierzwinski, senior director of U.S. PIRG’s Federal Consumer Program, said.

Mierzwinksi, who wrote the report, found 69% of consumer complaints were against the big three credit bureaus: Transunion, Equifax and Experian.

Mierzwinkski said the increase in complaints is concerning because having a bad credit score can impact your ability to buy a house, secure a loan, or get a job.

“In this tough economy, you want your credit report to be accurate,” he said. “The consumers are saying, they’re not accurate. Consumers are saying, they’re not listening to me.”

We reached out to all three major credit report companies to get their thoughts on the report. The Consumer Data Industry Association (CDIA) replied on their behalf:

Consumers, credit reporting agencies, banks and regulators continue to share a common goal when it comes to credit reports: they should be as accurate and reliable as possible. The nationwide credit reporting agencies (NCRAs) are working diligently across the financial ecosystem to achieve that goal.
Our industry continues to evolve policies and procedures with the best interests of consumers in mind. This includes changes to the reporting of medical collection debt and the extension of free weekly credit reporting through the end of 2023 to help consumers manage their financial health during a period of rising inflation and unprecedented economic uncertainty.
It also includes the creation of online dispute centers at each of the three major bureaus to streamline the handling of consumer disputes, as well as our industry’s support for sample dispute letters and templates—such as those provided by the Federal Trade Commission (FTC)–as tools that can help consumers to summarize all of the information needed to dispute information on their credit files.
Finally, certain credit repair companies falsely promise consumers they can remove negative, but accurate information from their credit report and drive activity which inflates complaint numbers and undermines the process of addressing legitimate requests. This issue deserves continued regulatory and enforcement attention. We are committed to continuing to work with the Consumer Financial Protection Bureau and the FTC to protect consumers against the harmful and abusive tactics caused by unethical credit repair companies.
The NCRAs play an important role in the financial lives of consumers. Our credit bureau members take that responsibility seriously and are committed to expanding access to credit for all consumers.

Mierzwinski recommended using the Consumer Financial Protection Bureau’s (CFPB) complaint database to search complaints by company to see others’ experiences.

If you do run into an issue, he suggested filing a complaint with the CFPB and your state attorney general’s office.

But at the end of the day, your best bet to avoid a low credit score is to make every effort to pay your bills on time, Mierzwinski said.

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