Consumer credit report complaints added to CFPB database

Consumer credit reporting agencies were put under the microscope recently by the Consumer Financial Protection Bureau (CFPB). A number of complaints regarding personal consumer credit reports were added to the CFPB's complaint database, the agency announced in a statement.

Overall, the source noted that over 6,000 credit report-related issues were out in the database and complaints will continue to be included as they are received. The agency has been collecting complaints since October 2012. Consumers will be able to file grievances under one of the five following categories: Inaccurate information on a report, problems with a report investigation, misuse of a report, being denied a report and issues with monitoring or protection.

According to a recent study conducted by the Federal Trade Commission, one in four Americans have an error on one of their credit reports. Also, 5 percent had errors that could result in unfavorable loan rates and terms.

It's a concern not just for consumers, but also for credit reporting agencies. With complaints made public, some reporting enterprises could see their reputations take a hit. By strictly adhering to the Fair Credit Reporting Act, scoring firms can avoid having complaints filed against them. Having all employees regularly tested on best reporting practices is a good strategy for these entities.