| Entities | |
| Topics and Issues | "Junk Data" (1) FOIA (11) Foster Care (1) |
In October 2022, the CFPB issued a press release announcing
guidance to consumer reporting companies about their obligation to screen for and eliminate obviously false “junk data” from consumers’ credit reports. Companies need to take steps to reliably detect and remove inconsistent or impossible information from consumers’ credit profiles. For example, many children in foster care have large amounts of information on their credit reports that is clearly junk data because as minors they are prohibited from entering into most contracts for credit.
The CFPB is now using a new phrase, “junk data” to describe information in consumer reports that the Bureau feels is wrong. The new A.O., Fair Credit Reporting; Facially False Data, is online. The Bureau also republished information from 2014 where the bureau issued tools “tools to protect foster care children from credit reporting problems.”
The Bureau put in its release that “…companies must have policies and procedures to screen for and eliminate junk data. Specifically, the policies and procedures should be able to detect and remove…inconsistent account information [and] information that cannot be accurate…” The press release noted that this new
guidance is one in a series of actions being taken by the CFPB to ensure consumer reporting companies comply with consumer financial protection law. Consumer complaints submitted to the CFPB continue to reflect significant concern about inaccuracies in consumer reports. Complaints about “incorrect information on your report” have represented the largest share of credit or consumer reporting complaints submitted to the CFPB for at least the last six years, and the CFPB receives more complaints about credit reporting than any other subject.
Following the release of this A.O., CDIA filed a FOIA request to the CFPB seeking any and all documents related to the issuance of this new A.O, Fair Credit Reporting; Facially False Data,