CFPB Implements Disclosure of Fake Information on Credit Reports | Consumer Protection Agency

Washington, DC – Today, the Consumer Financial Protection Bureau (CFPB) issued guidance to reporting companies about their obligation to investigate and disclaimer. “bad information” from consumer credit reports. Companies need to take reasonable steps to investigate and remove incorrect or invalid information from customers’ credit reports. For example, many children in foster care have multiple information on their credit reports that are clearly fraudulent. bad record because minors are prohibited from entering into many contracts for credit.

“When a credit report accuses someone of defaulting on a loan before they were born, that’s a ridiculous statement, data that shouldn’t have been disclosed in the first place,” CFPB Director Rohit said. Chopra. “Consumer reporting companies have a clear responsibility to use better methods to find and eliminate conflicting information, or information that may not be true.”

While misinformation affects millions of Americans, children in foster care may be particularly vulnerable to these problems because of the high identity theft affects the population. The approximately 400,000 children in the US foster care system often do not have permanent addresses, and their personal information is often shared with many adults and agency records. When criminals take advantage of children in foster care and use their personal information to make loans, children in foster care can Entering the elderly and placing them in a negative and clearly inaccurate history can hinder their progress towards financial independence.

When companies reporting to consumers include inaccurate or misleading information, consumers may suffer the consequences of the world. Bad credit reports can lead consumers to not getting credit, housing, or jobs, or to paying more debt. There are many types of bad credit reports, but some examples of credit reports that show a child with a mortgage, or a credit report that shows or a debt incurred years before the person was born.

Reporting companies have a legal requirement to follow appropriate procedures to ensure the accuracy of the information they collect and report. As part of that requirement, companies must have policies and procedures in place to detect and eliminate malicious information. In particular, policies and procedures should be able to identify and remove:

  • Neutral information: Sometimes consumer reports may show two or more statements that may not all be true. For example, an account is fully paid but still shows a balance, or a date of the first delinquency before the account was opened.
  • Information that cannot be correct: Sometimes the information in consumer reports reflects the impossibility. For example, if a trade line includes a date before the customer’s birthday or is only one of several trade lines values ​​indicating that the customer is deceased.

The reporting company’s policies, procedures, and internal controls should further identify and prevent the reporting of illegal transactions for a minor. Minors generally cannot legally enter into credit contracts except in limited circumstances, including student loan applications, for emancipated minors. , or become a credit card issuer.

Today’s guidance is one of a series of actions the CFPB is taking to ensure that consumer reporting firms comply with consumer protection laws. Consumer complaints submitted to the CFPB continue to reflect widespread concern about inaccurate consumer reporting. Complaints about “inaccurate information on your report” represent the majority of credit or consumer report complaints submitted to the CFPB for at least six years, and the CFPB receives more complaints about credit reporting than any other subject.

Read the advisory opinion, Appropriate Credit Report; Description Sing Facially .

The CFPB has media tools to help child welfare workers dispute credit reporting errors involving children in foster care.

Consumers can submit consumer complaints or credit reports, or complaints about other financial products and services, by visiting in the CFPB website or by phone (855) 411-CFPB (2372).

Employees who believe their company has violated federal consumer protection laws, including the Fair Credit Reporting Act, are encouraged to report what they know to.


The Consumer Financial Protection Bureau (CFPB) is a 21st century agency that helps the consumer financial market work by making the rules more effective, by consistently and fairly enforcing those rules. , and by empowering consumers to take more control of their financial lives. For more information, visit

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