Posts from February 2013

The Federal Trade Commission this week released its latest findings in a ten-year study on the accuracy of credit reports. This report is another reminder of how important it is to review your credit report for inaccuracies.

What does this mean to you?

You can check your three credit reports for free once every 12 months at annualcreditreport.com. Dispute any errors, and contact the company that reported the incorrect information to correct it.

For example, if your credit report says that you are 30 days behind on a payment to Bank ZYX, but you’re not actually behind, dispute the error with the credit bureau and also by contacting Bank ZYX directly.

If that doesn’t work, file a complaint with us. You’ll get a confirmation number immediately, email updates along the way, and be able to check the progress online.

What’s in a credit score?

The information in your credit report is used to make a credit score, which translates this great mass of information into a single number that essentially indicates the expected likelihood of repaying a loan on time. Generally, the lower the score, the lower the likelihood you’ll repay a loan on time, compared to other consumers.

How are credit reports used?

Credit reports are used in a wide range of situations – including decisions about whether you can rent a home, and in some states, how much you pay for auto and homeowners’ insurance. Sometimes they’re even used in hiring decisions. Banks, landlords, cell phone providers, and many kinds of other companies rely on the accuracy of this information to make decisions.

What happens if there’s a mistake on my credit report?

A mistake in your credit report can cost you because it can stop you from getting the best rate you’re eligible for any time you borrow money. If there are mistakes on your credit report that make you look bad, then you could be paying more than you should be every month.

Do you have more questions about credit reports and scores or other financial questions? Ask CFPB.

One way we further our mission to protect consumers is through appropriately sharing with state and local law enforcement agencies information that CFPB has gathered. Today, we’re announcing a new dimension in our ongoing sharing efforts. The CFPB recently signed a Memorandum of Understanding (MOU) with the Navajo Nation Department of Justice, setting out a framework for coordination and cooperation between our agencies. This is the first time that the CFPB has entered into an MOU with a tribal government.

We are excited about the opportunity to partner in enforcing federal consumer financial laws to protect consumers on the Navajo Nation. This new agreement supports our work to prevent harmful practices that target Native American consumers.

In addition to memorializing our intent to work together to protect tribal consumers, the MOU is designed to further our mutual consumer-protection goals by providing for the protected exchange of law enforcement-related information. The MOU details how the CFPB will respond to, among other things, third party requests for tribal information. Further, the MOU details the mechanism by which the Navajo Nation Department of Justice may request information from the CFPB and, if shared, protections for that information. These protections are also set forth in our federal regulations at 12 C.F.R. 1070.43 and 1070.47. Finally, as an overarching goal, the MOU confirms the confidentiality and non-disclosure of oral and written information that we share with each other.

See the full the Memorandum of Understanding.

Join the Consumer Advisory Board for a meeting with Director Cordray, where he’ll highlight the Bureau’s 2012 accomplishments and discuss some of the issues facing consumers.

10 a.m., Wednesday, February 20
1700 G Street, NW, Washington, D.C.

Director Richard Cordray will give remarks, followed by discussion by the Consumer Advisory Board, testimony from consumer groups, industry representatives, and members of the public.

To RSVP, email cfpb.events@cfpb.gov with:

• Your full name
• Your organizational affiliation (if any)

Also, take a look at the meeting’s agenda.