Banking and Finance Law Daily Wrap Up, FAIR CREDIT REPORTING—CFPB publishes latest list of credit reporting firms, (Jan 31, 2025)

By Jeff Williams

The report also provides tips regarding how consumers can monitor their reports, block third-party access to them, and steps they can take to correct inaccuracies.

The Consumer Financial Protection Bureau has issued a report of its annual list of consumer reporting companies, ranging from the three nationwide consumer reporting companies—Equifax, Experian, and TransUnion—to “dozens” of “specialty” consumer reporting companies covering specific sectors like tenant screening, insurance, telecommunications and utilities, and gambling and sports betting. "The number of companies and industries gathering, selling, and using personal financial data continues to rise,” CFPB Director Rohit Chopra said in a press release. “The CFPB’s consumer reporting company list helps consumers know who is collecting and selling their data, along with the steps they can take to freeze their reports.”

The agency noted that consumers can use the list to request their reporting data, dispute inaccuracies, and activate security freezes to block access to their credit reporting data. While Equifax, Experian, and TransUnion “dominate much of the credit reporting market,” the growing list of specialty credit reporting companies "means consumers’ personal financial data may be collected by and reported to a multitude of companies and individuals,” the CFPB said. “That spread can also increase consumer risk, especially when consumers are unaware that it is happening.”

The CFPB stressed in the report that the list of credit reporting companies is “not all-inclusive" and highlighted that the an “array” of businesses can obtain consumer credit reports, including lenders, employers, government agencies, landlords, banks, insurance companies, and gaming establishments. The report also told consumers that the “accuracy and completeness” of their consumer reporting data is “extremely important” and that users of consumer reports “generally do not warn you in advance if they are about to take an adverse action” them based on information in their consumer reports.

In addition, the report detailed how consumers can request, review, and dispute reports about them. Among other tips, the CFPB recommended consumers check their credit reports from Equifax, Experian, and TransUnion at least once a year. They should also do so if they suspect they have been the victim of identity theft, CFPB said, pointing to Federal Trade Commission data showing that consumers reported losing more than $10 billion to fraud in 2023.

“[C]onsumers face ongoing challenges after a fraud event that go beyond the amount of money stolen,” the report said. “While everyone is at risk, certain demographic groups like servicemembers and older consumers are at increased risk of identity theft and scams.”

The report also advised consumers to “seriously consider” using a freeze to restrict third-party access to their credit reports, unless they are “actively shopping” for credit. "We favor it because it is the only option available for free by law that can prevent scammers from opening new credit accounts in your name where credit reports are a necessary prerequisite to extending credit,” the agency said. “By freezing your credit reporting data, you have a better chance of avoiding harms before they happen.”

The report also outlined that consumers have the legal right to dispute a report if they think it is inaccurate or incomplete, but also noted that, “Of course, if your information is current and accurate, even if negative, you do not have the right to have it removed.”

RegulatoryActivity: CFPB ConsumerCredit FairCreditReporting