Equifax to pay $15 million in fines for credit report errors

• Equifax was penalized $15 million by the Consumer Financial Protection Bureau for credit reporting mistakes.
• The CFPB alleged the credit bureau failed to properly investigate consumer disputes.
• Experts stated that credit reports greatly influence consumer finances, as they can determine someone's ability to secure a loan, rent an apartment, or obtain a job.

The Consumer Financial Protection Bureau fined $15 million for errors in consumer credit reports, claiming the company did not conduct thorough investigations into disputed information, the federal watchdog declared on Friday.

One of the three major credit reporting agencies in the U.S., alongside and , is Equifax.

The CFPB's order stated that Equifax failed to address consumer complaints, misrepresented the results of its investigations, and used faulty software that resulted in incorrect credit scores.

Why credit reports are important

Consumers' borrowing records, including loan payment history and bankruptcy filings, are documented in credit reports.

The consequences of inaccurate information on financial reports can be "severe," according to Adam Rust, director of financial services at the Consumer Federation of America, a consumer advocacy group.

Rust stated that it can affect your eligibility for a loan, job, and apartment rental, all of which are crucial aspects of managing your personal life.

Equifax had 'flawed' process, CFPB says

Equifax processes about 765,000 consumer disputes a month, CFPB said.

Since October 2017, Equifax has faced criticism for its "flawed" dispute policies and technology failures, which have negatively impacted millions of consumers, according to the CFPB. The bureau alleged that Equifax violated the Fair Credit Reporting Act.

In 2025, interest rates are predicted to be by experts. In 2024, over 1 million individuals had their student debt forgiven. Approximately half of credit card users are currently carrying debt.

Equifax settled the allegations to "turn the page on the CFPB's long-standing investigation," a company spokesperson wrote in an email.

Over the past few years, the company has invested over $1.5 billion in technology and infrastructure upgrades, including substantial modifications to its dispute resolution procedure and customer support, as stated by the spokesperson.

"We aim to assist individuals in making sound financial decisions by providing reliable data, and we understand that our customers rely on our accuracy," they stated. "Any mistake that affects a consumer is unacceptable," they emphasized.

Experian was fined $15 million by the CFPB after a lawsuit alleging sham investigations of credit report errors. In a statement, Experian called the lawsuit baseless and an example of overreach.

The National Consumer Law Center's senior attorney, Chi Chi Wu, stated that credit bureaus have been frequently sued for this behavior. "These issues have been ongoing for many years," she emphasized.

In 2017, a data breach at Equifax compromised the personal information of 147 million consumers, resulting in a $700 million settlement for the company.

How to have good 'hygiene' with credit reports

It is advised by Rust and the Federal Trade Commission to examine credit reports annually, particularly before applying for credit, loans, insurance, or jobs.

It is crucial for consumers to verify the accuracy of their credit report information, including identity details such as addresses and Social Security numbers, as well as account information like debt balances and delinquency status.

Rust stated that financial hygiene is a good practice.

A credit score is a numerical result based on a consumer's credit report information.

A sudden change in credit score is a signal, according to Rust.

Consumers can obtain a free credit report from the three major credit bureaus once a week by visiting AnnualCreditReport.com or calling 1-877-322-8228. However, the Federal Trade Commission warns that other sites may charge consumers or be fraudulent.

What to do about a credit report error

Wu advised consumers to resolve errors on their credit report by submitting a dispute in writing, along with supporting documents, via postal mail to the credit bureau and requesting a return receipt. She stated that consumers have a higher chance of success by mail than online.

Wu advised consumers to file a complaint with both the CFPB and their state attorney general's office.

Wu stated that consumers have the right to request that their dispute statement be included in their file and future credit reports, as well as have their statement provided to anyone who received a copy of their report in the past.

If consumers are unable to resolve errors despite multiple attempts, they may need to seek legal advice, she suggested.

"If a credit reporting error results in an expensive loan, you may want to consider litigation as a form of compensation."

Wu stated that they might be able to locate an attorney through groups such as the National Association of Consumer Advocates.