Consumer Financial Protection Bureau sues Experian alleging Fair Credit Reporting Act violations in dispute investigations and tradeline reinsertions

The Consumer Financial Protection Bureau has filed a lawsuit against Experian, alleging it unlawfully failed to properly investigate consumer disputes and allowed inaccurate information to remain on, or reappear in, consumer credit reports. The complaint asserts violations of the Fair Credit Reporting Act (FCRA) and the Consumer Financial Protection Act’s prohibition on unfair acts or practices. According to the CFPB, Experian’s dispute handling relied on faulty intake and processing procedures, did not accurately convey relevant dispute information and consumer-provided documentation to furnishers, and routinely deferred to furnishers’ responses even when improbable or contradicted by other available information. The Bureau also alleges Experian issued consumer notices that were confusing or internally inconsistent and failed to clearly communicate investigation results. Separately, the CFPB claims Experian failed to implement basic matching tools to prevent the reinsertion of previously deleted tradelines, leading to inaccurate accounts reappearing under a different furnisher name. The CFPB is seeking to stop the alleged unlawful conduct, obtain redress for harmed consumers, and impose a civil money penalty to be paid into the CFPB’s victims relief fund.