The Consumer Financial Protection Bureau (CFPB) fined Equifax, Inc. and Equifax Information Services $15 million for improperly investigating customer disputes.
On January 17, CFPB fined Equifax for failing to use documents and evidence that consumers provided with a dispute claim, which would have removed inaccuracies from a consumer’s credit report.
“Equifax failed in its basic duty to investigate and resolve consumer disputes about inaccurate information on their credit reports,” said CFPB Director Rohit Chopra. “Today’s order requires Equifax to pay a civil penalty and follow federal laws on handling credit reporting disputes.”
Under the Fair Credit Reporting Act (FCRA), credit reporting agencies are required to investigate the accuracy of disputed information and maintain accurate consumer reports.
The CFPB said Equifax violated the FCRA by using ineffective systems and flawed processes to investigate consumer disputes thoroughly, adding previously deleted errors back to credit reports, failing to block identity theft-related information and sharing inaccurate credit scores and information about consumers to lenders.
As a result, Equifax has been ordered to follow federal law when handling credit reporting data and pay a $15 million civil penalty to the victim’s relief fund.