Category Archives: Consumer Financial Protection Bureau (CFPB)

CFPB’s Multibillion-Dollar Settlement with Credit Repair Firms

On August 28, 2023, the Consumer Financial Protection Bureau (CFPB) announced that it had reached a $2.7 billion settlement with Lexington Law and to resolve allegations that the companies have been violating federal law with their telemarketing practices. As the nation’s two largest “credit repair” companies, the companies earned approximately $388 million in revenue […]

Harmful Data Broker Practices—What Can Be Done to Protect American Consumers

As many as 40 million Americans have errors on their credit reports—and errors on credit reports can cause havoc on someone’s financial well-being, leading them to have potentially higher interest rates on credit cards, mortgages, and car loans. It can even impact their ability to rent an apartment or get a job. Meanwhile, despite the […]

Government Investigating Equifax Compliance with Reporting Requirements

Consumers are used to Equifax scrutinizing their credit activity and using the information to generate credit reports and credit scores that impact so much of their lives—from the interest rates credit card companies charge to the ability to get a job. And studies by the Consumer Financial Protection Bureau (CFPB) found that, unfortunately, many consumers […]

What Is “Synthetic Identify Theft” and How Can It Impact Me?

“Synthetic identity theft” is when a fraudster combines real information about someone—such as a Social Security number—and information they’ve created about an entirely fake person. They then use these  “Frankenstein IDs” to commit theft. Some analysts have concluded that synthetic identity theft is the fastest-growing financial crime in the United States. At the same time, […]

Collections Information Declines on Credit Reports—But There’s More to the Story

The Consumer Financial Protection Bureau (CFPB) recently issued an analysis of debt collection appearing on consumers’ credit reports. On the one hand, the findings are a positive sign: Consumers’ financial well-being seems to be improving. But on the other hand, the analysis shows that false and inaccurate information on credit reports continues to be a real […]

What Happens When Two Women Share a Social Security Number? Financial Chaos Ensues

Recently, NBC News covered an incredible story of mistaken identity. Or, perhaps, to put it more accurately, it’s a story of “mixed identity.” Two women share the same name (Jieun Kim), age, and same date of birth. Both were born in South Korea and later emigrated to the U.S.—one woman moving to Los Angeles, the […]

Free Credit Reports Have Been an Invaluable Tool for Consumers—But They Could Be Ending

In April 2020, as the nation began to shut down because of the COVID pandemic, the three national credit bureaus—Experian, Equifax, and TransUnion—jointly announced they would allow Americans to get free credit reports every week. However, there are indications that the bureaus may end the policy by the end of this year. Consumer advocates are […]

CFPB Wants to Tackle Form Contracts

On January 11, 2023, the Consumer Financial Protection Bureau (CFPB) announced that it is considering the creation of an online, public database of the form contracts being used by “nonbanks,” companies that aren’t banks but provide financial services to their customers (such as a car company that provides loans). According to the CFPB, these nonbanks […]

New Report Shows Progress in the Fight Against Credit Bureau Errors and More—But We Aren’t Done Yet

On January 3, 2023, the Consumer Financial Protection Bureau (CFPB) released a new report assessing the state of the nation’s credit reporting system, particularly the work of the three national credit bureaus, Experian, Equifax, and TransUnion. Compared to last year’s dismal report, the results are encouraging. While there is still a ton of work to be […]

How Americans Lost $603 Billion by Sticking With Big Banks

We tend to assume that big banks like Citi, Bank of America, Wells Fargo, U.S. Bank, and Chase treat us fairly when we deposit our money with them. Relentless advertisements, featuring smiling families and beloved celebrities, are designed to make us, dare I say, trust these big banks. That trust is totally unwarranted. The Wall Street Journal recently explained how consumers […]