Tag: National Credit Reporting Agencies

Report Finds Complaints About National Credit Reporting Agencies Filed with the CFPB Nearly Doubled From 2021 to 2022 April 27, 2023 Between 2021 and 2022, consumer reports filed with the Consumer Financial Protection Bureau (CFPB) against National Consumer Reporting Agencies (NCRAs) increased significantly. According to a U.S. Public Interest Research Group report, 2021 saw 496,000 consumer complaints. However, 2022 quickly broke this record when consumers filed 800,394 complaints. The CFPB also reported that 2022 saw nearly 89% of the credit and consumer reporting complaints against the three major credit reporting agencies. In the report, the CFPB noted that one of the most common complaints concerned incorrect information. Examples of this complaint included false accounts under individuals' names, unfamiliar credit inquiries, and other harmful information. The negative information can and often causes significant difficulties for affected consumers. For example, it could complicate a person's ability to rent housing, get credit or loans, and more. In addition, consumers revealed the challenges of freezing and unfreezing their credit. Furthermore, consumers voiced issues like improper use of their reports and difficulties when having companies investigate problems. The CFPB noted an overall increase in complaints concerning financial services and products in 2022. The CFPB specifically mentioned complaints concerning money service frauds or scams, student loans, and savings or checking accounts. According to the report, the checking and savings account complaints had many concerning problems. For example, consumers noted difficulties with managing their accounts, such as closing an account, customer service, and fraudulent activity. In addition to these complaints, the CFPB saw increased student loan complaints. These complaints generally concerned difficulties with services or lenders, such as extensions for repayment pauses or forgiveness. For example, many students have federal loans and have voiced concerns about the paused payments that started in March 2020. Complaints about scams and money service fraud also increased. For example, consumers complained about phishing or smishing scams. They also mentioned text message scams and attempts to trick consumers into sending money. In addition, consumers have complained about an increase in virtual currency scams. The report revealed that Georgia residents were most likely to file a complaint, closely followed by Delaware. However, South Dakota, Idaho, Maine, and West Virginia residents filed the fewest complaints. The rise in complaints with the CFPB comes when court filings under the Fair Credit Reporting Act (FCRA) have also increased. Complying with the FCRA during the hiring process ensures employers avoid penalties and potential lawsuits. The best way to ensure compliance with the FCRA during the hiring process is to partner with a trustworthy background check company. Discover the benefits of Pre-employ’s seamless background checks for your business. Contact a Sales representative today. Source

Tag: National Credit Reporting Agencies

Report Finds Complaints About National Credit Reporting Agencies Filed with the CFPB Nearly Doubled From 2021 to 2022

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