CFPB Cracks Down on Credit-Repair Complaint Flood

To address the problem, the CFPB standardized the process for credit reporting agencies (CRAs) to follow when handling complaints, strengthened identity protections, aligned the complaint process with statutory obligations, and focused resources on complaints that warrant a substantive response. The regulator also added consumer education about how to correct credit-report errors.

The changes aim to ensure CRAs maintain high response rates, remind consumers to exhaust their dispute rights with the CRA before coming to the bureau, and protect the system from abuse, the CFPB said.

The National Consumer Law Center pushed back on the premise that the complaint volume reflects abuse. The advocacy group said in January that the numbers reflect genuine problems with credit reports. "Those numbers reflect the massive issues caused by mistakes and other problems that people have with their credit report," the NCLC said at the time.