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CFPB to Monitor Credit Reporting Agencies

I don’t know what’s more surprising – the fact that the Consumer Financial Protection Bureau will now be supervising any credit reporting agencies that has more than $7 million annual receipts… or that this is the first time those bureaus will be subject to federal oversight. While they have been subject to some regulation, the Fair Credit Reporting Act required that they give you access to your credit report every single year, no one monitored their behavior. What makes it even more interesting is that credit reporting agencies don’t service consumers like you and me, they service lenders, creditors, landlords, and other people who want to know your credit worthiness.

What will the CFPB be doing? Starting September, the bureau will begin watching about thirty bureaus [3] that make up 94% of the industry, including the big three – Experian, Equifax, and TransUnion. The bureaus will be filing reports and be subject to on-site exams into their business practices with three goals – checking whether the information reported to the bureaus is accurate, whether the information is being processed and recorded accurately, and whether the dispute resolution process is working.

I’m glad to see more oversight, especially in this area, because for far too long the bureaus were too haphazard in how they collected and validated data. I had two Social Security Numbers because the credit bureau just stored whatever was reported, even incorrect data. You can’t have two Social Security Numbers!