CFPB issues guidance on removing false data from credit reports

The Consumer Financial Protection Bureau today issued guidance to consumer reporting companies about their legal obligation to screen for and eliminate false data from consumers’ credit reports. According to CFPB, a reporting company’s policies and procedures should be able to detect and remove inconsistent account information, such as conflicting data on whether an account is paid in full. Companies should also be able to detect information that obviously isn’t true, such as an account established before a person was born.

Complaints about “incorrect information on your report” represent the largest share of credit or consumer reporting complaints submitted to the CFPB for at least the last six years, and the agency receives more complaints about credit reporting than any other subject, CFPB said.