The CFPB's assault on credit reporting practices and abuses continues. Just last week, it ordered TD Bank to pay $7.75 MILLION DOLLARS to tens of thousands of consumers that were impacted by its practices. The CFPB claims that for years the bank repeatedly shared inaccurate, negative information to credit reporting companies. The CFPB also fined the bank TWENTY MILLION DOLLARS.
The allegations include:
Failing to fix credit card reporting errors even after it knew it was sending incorrect information;
Sharing fraudulent information with credit reporting agencies;
Failing to investigate and correct consumer disputes;
Why YOU Should Care?
We've called attention to all of this before, but many still aren't getting the message. You don't think you'll be a CFPB target, and you're probably right, but you'd better believe that the plaintiffs' lawyers see those million dollar fine headlines and take notice. Lawsuits for reporting incorrect information and failing to correct errors is the number one claim brought against the credit industry. These cases are expensive to defend and don't settle fast and cheap. This is a real risk, yet so many creditors choose to "whistle through the graveyard".
What to Do?
You need to have a written policy and process for both reporting and dispute handling.
You need to train your people how to do these things and not leave it to chance.
You need to set up an audit schedule to check your reporting and make sure it's accurate. If you don't do or have each of these items, you need to take action. Don't just rely on your service providers and think the job is done. It's YOUR data, it's YOUR liability.
We have experts with decades of experience in identifying and reducing risk. Ignite can do a mini audit of your reporting file. We can also teach your team how to conduct its own audits. We can also teach you how to identify and correct common errors and gaps in your system. Reach out today to info@ignitecp.com
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