Consumers facing errors on their credit reports now encounter increased difficulty in seeking corrections. Mistakes can jeopardize home loans, job prospects, and lead to higher interest rates.
The Consumer Financial Protection Bureau (CFPB), historically a recourse for credit reporting issues, has implemented new procedures that complicate the complaint process. Previously, consumers could file complaints directly with the CFPB. However, recent changes, influenced by lobbying from credit bureaus, mandate a formal dispute with the credit bureau first.
Under the new rules, individuals must wait 45 days after disputing an error with a credit bureau before the CFPB will accept a complaint, unless the bureau resolves the issue sooner. Applicants must also attest to following these steps, with complaints dismissed if the credit bureau claims the consumer did not initiate direct contact.
Consumer advocates argue these changes shield credit bureaus from accountability and do not align with existing law. Experts advise consumers to dispute errors directly with Equifax, Experian, or TransUnion, document all communications, and then file a CFPB complaint if the issue remains unresolved after the 45-day period.