The Federal Trade Commission will refer consumer complaints to the three major national consumer credit reporting agencies under a new program announced today.
While the new program doesn't guarantee that consumers' gripes will be taken seriously, it improves the odds considerably.
The FTC said it will send Equifax, Experian, and TransUnion certain complaints from consumers about disputed inaccuracies or incomplete information in the companies files. The agencies will review the complaints, correct the files if necessary, and report the results to the FTC. The program implements a new provision in the federal Fair Credit Reporting Act (FCRA).
The credit reporting agencies collect information about consumers, including payment histories on their debts, and compile the information into credit reports. The reports are then provided to lenders, other creditors, insurers, employers and others with a legitimate business need for the information.
Under amendments to the FCRA in the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), consumers will have a right to receive a free copy of their credit report every year from each of the three national credit agencies.
Consumers also have a right to dispute the accuracy or completeness of any information in their reports. A dispute by a consumer triggers a reinvestigation by the agency and the original source of the information, as well as a correction, if necessary.
Under the program announced today, the FTC will refer complaints it receives from consumers who maintain that their disputes about accuracy or completeness have not been resolved to their satisfaction. The FTC will not make any determination about the merits of the complaints.
The credit agencies will review the complaints to make sure they have complied with the applicable provisions of the FCRA, and periodically provide reports to the FTC on the disposition of a sample of the complaints. The program does not limit the FTCs ability to pursue law enforcement under the FCRA.
Accurate and complete information is not only essential to our credit-based economy, said Howard Beales, Director of the FTCs Bureau of Consumer Protection, but also to the fair treatment of consumers.
For a complete description of the process for disputing information in a credit report that may contain inaccurate or incomplete information, see www.ftc.gov/bcp/conline/pubs/credit/fcra.
