Credit Reporting Firms Must Disclose Source of Information

the Consumer Financial Protection Bureau (CFPB) filed a amicus brief Thursday (Jan. 16), saying it aims to make sure credit reporting companies are held accountable for “junk data” and don’t get “loopholes” in the law that prevent that accountability.

The regulator filed an amicus brief in a case where TransUnion argued that consumers should not be required to provide the source of certain information on their credit reports, including names, phone numbers, Social Security numbers and addresses, CFPB General Counsel Seth Frotman written on a Thursday blog post.

“Our amicus brief makes clear that this is incorrect,” Frotman wrote. “Congress has clearly required consumer reporting companies to disclose the source of phone numbers and similar information, and courts have found that statutory protections apply to the information in the reports. credit, which clearly includes consumers’ personal information.”

TransUnion did not immediately respond to PYMNTS’ request for comment.

In the lawsuit against the credit reporting company, a consumer claimed he was subjected to debt collection calls after TransUnion listed his phone number on someone else’s credit report, as well as including the phone number that did not belong on his credit report and failed to give him the source of the wrong phone number, according to the blog post.

“Without access to this information, consumers will not know who may be reporting false information about them,” Frotman wrote. “And when people’s data gets mixed up with someone else’s, it’s not just a minor inconvenience but a problem that has far-reaching consequences for their financial lives.”

The filing of this amicus brief occurred about a week after the CFPB sued the consumer reporting agency Experianalleging that the company unlawfully failed to properly investigate consumer disputes and included false information on credit reports.

In that case, the regulator alleged that Experian’s practices violated the requirements of the Fair Credit Reporting Act (FCRA) and the Consumer Financial Protection Act’s prohibition on unfair practices or practices.

Reached by PYMNTS, Experian said in an emailed statement that the lawsuit has no merit and that the company will vigorously defend its legal position.