‘Americans are angry’: Consumer complaints about credit-reporting points rose by 96% in a single 12 months

In 2022, the CFPB printed 800,394 complaints from shoppers, a 61% improve from the earlier 12 months, the place 496,000 complaints have been filed. Within this group, credit-reporting complaints elevated by 96% from 2021 to 2022. Credit-reporting complaints stood at over 600,000 in 2022. 

“Americans are angry at credit-reporting system,” the report’s title learn.

“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,” Ed Mierzwinski, senior director for federal shopper applications at U.S. PIRG Education Fund, stated in an announcement. 

“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,” he added.

The report additionally famous that the three dominant credit score bureaus acquired extra shopper complaints than some other monetary agency in 2022. Credit-reporting points in opposition to the three huge credit score bureaus made up 69% of the 800,000 complaints the CFPB acquired in 2022.

The three firms dealing with probably the most shopper backlash have been TransUnion
TRU,
-3.86%,
Equifax
EFX,
-2.05%,
and Experian
EXPGY,
-2.02%.
 

MarketWatch has reached out to TransUnion, Equifax and Experian for remark.

Year-over-year, complaints in opposition to Experian rose by 334%; TransUnion by 183%; Equifax by 24%.

Consumers in Florida reported the best variety of complaints in 2022, at 98,277, in accordance with PIRG. Texas and California residents ranked second and third, at 86,578 and 80,094 every.

Residents in Wyoming had the least variety of complaints at 337. 

These three firms, TransUnion, Experian and Equifax, are the largest gamers in credit score reporting by way of quantity, so the findings are usually not a serious shock, Ted Rossman, senior trade analyst at Bankrate, instructed MarketWatch.

“Your credit score is a very important number, of course, and most people don’t pay much attention to their credit scores until they’re in the market for a loan. If they get turned down because their credit score is too low, they might take that anger out on the credit bureaus,” Rossman stated.

“A lot of people don’t understand what goes into a credit score or report — they just get mad when a lending decision doesn’t go their way,” he added. “Rising interest rates are probably contributing to sticker shock as well.”

Rossman additionally supplied three ideas for shoppers who’re dealing with these points:

First, maintain observe of your rating at this free web site to keep away from nasty shocks.

Second, don’t sleep on any potential points — proactively report the error to the credit score bureau and your financial institution or monetary establishment even earlier than you attempt to apply for a brand new mortgage.

Lastly, attempt to not solely enhance however shield your credit score rating by forming good habits like paying payments on time and protecting debt balances low, Rossman stated.