Equifax Faces $15 Million Fine for Credit Report Errors

Equifax has been fined $15 million by the U.S. Consumer Financial Protection Bureau for failing to investigate consumer disputes thoroughly, leading to inaccurate credit scores. Equifax will pay the penalty and revamp its dispute processes as part of the settlement.

Equifax has been hit with a $15 million fine by the U.S. Consumer Financial Protection Bureau for inadequately addressing consumer disputes relating to credit reports. The decision underscores a significant failure in their system to handle complaints about inaccuracies in consumer credit data.

According to the bureau, Equifax repeatedly ignored documentation and evidence provided by consumers and allowed previously flagged errors to reappear in credit reports. Furthermore, it relied on flawed software that contributed to incorrect credit scores.

The financial penalty will be directed into CFPB's victim relief fund, while Equifax has committed to improving its handling of dispute resolutions. A representative from Equifax did not promptly comment on the matter.

(With inputs from agencies.)