On January 7th, 2025, the Consumer Financial Protection Bureau (CFPB) announced a lawsuit against Experian. The CFPB alleges that the credit reporting agency failed to properly investigate consumer disputes. At The Kim Law Firm, LLC, we hold credit bureaus accountable for violating the rights of people and families. Within this article, our credit reporting agency attorney lawyer provides a more comprehensive overview of the lawsuit against Experian.
What is Experian?
Also referred to as a credit bureau, a credit reporting agency is a private company that collects, maintains, and sells information related to the credit history of individual consumers. Experian is one of the nation’s three major credit reporting agencies (Equifax and TransUnion). Notably, these companies must comply with federal and state law.
Allegations: Experian Failed to Conduct Proper Investigations
The Consumer Financial Protection Bureau has filed a consumer protection lawsuit against Experian. The federal agency alleges that the credit bureau failed to properly investigate consumer disputes. As a direct consequence of the “sham” investigations alleged by the CFPB many consumers had incorrect adverse information on their credit reports. The CFPB alleges violations of the federal Fair Credit Reporting Act (FCRA). Among other things, the agency accuses Experian of:
- Systematically conducting inadequate investigations into consumer complaints;
- Frequently disregarding key details provided by consumers; and
- Blindly accepting responses from furnishers (creditors, debt collectors, etc).
The lawsuit also contends Experian will often improperly reinsert previously deleted inaccurate information into consumer credit reports. As a result, there can be considerable confusion, and the affected consumers can be directly harmed as incorrect adverse information can undermine a person’s ability to access credit, get a fair interest rate, obtain housing, and even get a job. As part of the lawsuit, the CFPB is seeking to stop the violations, require Experian to ensure compliance with the FCRA and recover financial compensation for affected consumers.
The FCRA Protects Consumers from Credit Report Errors
Credit reporting agencies must comply with the FCRA. The law helps to protect consumers against harm caused by credit report errors. It requires credit reporting agencies like Experian to ensure the accuracy of consumer information and to properly investigate disputes. Consumers have the right to challenge incorrect data and receive a fair review. The FCRA also prevents previously removed inaccurate information from being reinserted without proper verification. Notably, consumers can file an FCRA lawsuit on their own and do not have to wait for the CFPB or any other government entity to take action. An experienced credit report error lawyer can help.
We Help Consumers Fight Back Against Credit Report Errors
At The Kim Law Firm, LLC, our consumer protection attorney has the experience you can rely on. If you suffered financial harm due to an error on your credit report, our team is here to help. Contact us today for a free, no-obligation initial consultation. We are committed to helping consumers hold credit reporting agencies accountable for errors that should have been corrected.
