Equifax Fined $15 Million: A Turning Point in Credit Reporting Accountability

The U.S. Consumer Financial Protection Bureau fined Equifax $15 million for insufficiently investigating consumer credit report disputes. Equifax ignored evidence from consumers, reinstated inaccuracies, and used flawed software, resulting in incorrect credit scores. The settlement mandates improvements to Equifax's data-quality and dispute resolution processes.

The U.S. Consumer Financial Protection Bureau has imposed a $15 million penalty on credit reporting agency Equifax for its failure to adequately investigate consumer disputes related to credit reports. The agency revealed that Equifax neglected documentation and evidence provided by consumers, permitted inaccuracies that had been previously flagged to reappear in credit reports, and relied on defective software, leading to erroneous credit scores.

An Equifax spokesperson responded, stating that the settlement resolves the issue, initially disclosed in 2022, and underscores the company's commitment to enhancing its data-quality capabilities. They emphasized that this settlement 'turns the page' on the matter.

As part of the settlement, Equifax has committed to depositing $15 million into the CFPB's victim relief fund and undertaking corrective measures to improve its dispute resolution processes.

(With inputs from agencies.)