Equifax Fined $15M For Consumer Dispute Failures

The Consumer Financial Protection Bureau (CFPB) has taken action against Equifax Inc. EFX, a consumer reporting agency, for failing to properly investigate consumer disputes.

The CFPB’s investigation found that Equifax negatively impacted consumers by failing to fully investigate disputes, allowing previously removed errors to reappear, and using defective software that resulted in incorrect credit scores and inaccurate data being shared with lenders.

As a result, the order requires Equifax to follow federal regulations and pay a $15 million civil penalty, which will be directed to the CFPB’s victims relief fund.

The company handles a large volume of disputes monthly but fell short of meeting the legal requirements of the Fair Credit Reporting Act (FCRA).

The Act mandates consumer reporting agencies to investigate the accuracy of disputed information and take steps to ensure consumers’ credit reports are accurate.

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The CFPB pointed out that Equifax reported credit information that it should have blocked because the information resulted from identity theft.

“Equifax failed in its basic duty to investigate and resolve consumer disputes about inaccurate information on their credit reports,” said CFPB Director Rohit Chopra.

“Today’s order requires Equifax to pay a civil penalty and follow federal laws on handling credit reporting disputes.”

Price Action: EFX shares are trading higher by 0.34% at $265.14 at the last check Friday.

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