We’ve had enough – and we’re not going to take it anymore!
That’s the sentiment of U.S. consumers when it comes to credit reporting, according to a new study. As a nation, we’re frustrated, flabbergasted, and fed up like never before with how the credit bureaus collect, document, and report our credit habits.
In fact, complaints from consumers about credit reporting and the credit bureaus skyrocketed 96% just last year. That’s right – complaints about credit reporting almost doubled in just 365 days!
According to a detailed report by the U.S. PIRG Education Fund, credit complaints jumped from 496,000 in 2021 to 800,394 in 2022. The report by the PIRG looked into the comprehensive database of complaints filed by consumers maintained by the Consumer Financial Protection Bureau (CFPB).
Even the title of the report, “Americans are angry at credit-reporting system,” spoke to the rising rage of consumers against the way credit scores are determined!
To be fair, it was the big three credit bureaus – TransUnion, Equifax, and Experian – that saw the vast majority of consumer complaints in 2022. Of the total 800,000+ consumer complains the Consumer Financial Protection Bureau received last year, 69% of them were registered about those three big credit bureaus.
Complaints over the big three credit bureaus rose sharply year-over-year, including +334% for Experian, +183% for TransUnion, and a more modest +24% for Equifax.
Additionally, the report gives us insight into the type of credit reporting complaints consumers were lodging.
The top 5 consumer credit complaints:
28.7% Incorrect information on your report.
26% Improper use of your report.
19% Problem with a credit-reporting company’s investigation into an existing problem.
3.8% Attempts to collect debt not owed.
2.8% Managing an account.
(19.7% of complains were about other issues.)
The U.S. PIRG Education refund report also offers analysis and commentary, not just data…and it’s far from complimentary.
“I’ve studied credit-reporting complaints for over 30 years, yet I cannot comprehend how little the credit bureaus’ poor treatment of consumers has changed,” said Ed Mierzwinski, senior director for federal consumer programs at that organization. “When Americans describe a system rigged against them in the stories they file into the CFPB database, it’s unfortunately not surprising — I’ve seen it all before.”
To counter the findings of the report, the credit reporting agencies (in a statement issued by the Consumer Data Industry Association) responded that while they do take their responsibility of credit reporting seriously, a portion of those consumers issues needed regulatory and enforcement attention” to fix.
“Credit reporting agencies “play an important role in the financial lives of consumers,” said the Consumer Data Industry Association in a statement. “Our credit bureau members take that responsibility seriously and are committed to expanding access to credit for all consumers.”
With an explosion of data, accounts, and technology, the credit reporting industry is definitely more robust and far encompassing than ever, and that includes a record number of complaints by consumers.
If you’ve got a legitimate beef with the credit bureaus and how your information is being reported, please contact the bureaus directly to dispute those items or call Blue Water Credit for some professional help.
Blue Water Credit is the industry leader in legal, ethical, and highly effective credit repair, so we’re always ready to help!
