A recent report by the Consumer Financial Protection Bureau outlined a number of problems it found with the big three consumer reporting companies along with suggested reforms that could help consumers improve the accuracy of their own credit reports as well as those all-important three-digit scores.
The watchdog agency said Equifax, Experian and TransUnion had insufficient quality control systems and did not conduct reasonable investigations when consumers disputed something in their files.
The government also laid out a number of ways to improve the accuracy and operation of the credit scoring companies to prevent or fix the errors in the reports that lenders use to assess borrowers’ creditworthiness and set rates. For starters, the agency advocated stricter identity-matching criteria and updating records more frequently.
Incorrect information on a credit report is the top issue reported by consumers filing a complaint, according to the CFPB.