WASHINGTON – The National Consumer Law Center (NCLC) is criticizing a move by the Consumer Financial Protection Bureau that it said has started the process of potentially changing the Bureau’s complaint system to make it harder for people to file complaints against credit reporting companies – and possibly against debt collectors, banks, and other big businesses.
According to the NCLC, the CFPB appears to be responding to a request by Experian to reduce the number of complaints people file with the CFPB against Experian and its peers, Equifax and Trans Union.
The NCLC noted the January 27 Experian letter to CFPB asks the Bureau to:
- Require consumers to supply sensitive personal information, such as date of birth and other demographic information
- Require two-factor authentication and only allow a certain number of complaints per phone number, effectively restricting how many complaints a consumer can file
- Restrict IP addresses from submitting complaints on behalf of multiple consumers, which could hinder consumers from submitting complaints from places such as libraries and domestic violence shelters
‘One of Worst Oligopolies in the Country’
“Last year, consumers filed nearly five million complaints with the CFPB regarding credit reporting, mostly against the Big Three credit bureaus, one of the worst oligopolies in this country,” NCLC Director of Consumer Reporting and Data Advocacy Chi Chi Wu said in a statement. “Those huge numbers reflect the massive issues caused by mistakes and other problems that people have with their credit reports. But instead of fixing these problems, which is supposed to be CFPB’s mission, (Acting CFPB Director) Russell Vought and his cronies appear ready to bow to Experian’s demands to sweep the problem under the rug by suppressing the volume of complaints.”
The NCLC stated that incorrect information on a credit report, whether caused by errors or identity theft, “can be devastating, costing families thousands of dollars in higher interest rates or denying access to loans altogether. It can prevent people from becoming homeowners, buying cars, or opening small businesses and can also cost people a job opportunity, insurance, or an apartment rental.”
Question Unclear
The NCLC added that it’s unclear whether the potential changes would also affect complaints against other companies that CFPB regulates such as debt collectors, big banks, and mortgage servicers.
