Consumer Financial Protection Bureau files lawsuit against Experian over error handling

Experian lawsuit overview: 

• Who: The Consumer Financial Protection Bureau filed a lawsuit against Experian Information Solutions Inc. 
• Why: The agency claims Experian failed to “reasonably reinvestigate” disputes made by consumers regarding the accuracy or completeness of information in consumer reports.
• Where: The Experian lawsuit was filed in California federal court. 

The Consumer Financial Protection Bureau (CFPB) claims Experian failed to “reasonably reinvestigate” consumer disputes challenging the accuracy or completeness of information in consumer reports. 

The CFPB, in a new lawsuit filed earlier this month, argues the global information services company failed to forward all relevant information to furnishers and provide “adequate or accurate” notice to consumers of the outcome of their disputes. 

Further, the agency claims Experian failed to utilize “reasonable procedures” needed to ensure the accuracy and completeness of information in consumers’ files. 

The CFPB argues Experian’s actions violated the Fair Credit Reporting Act (FCRA) and the Consumer Financial Protection Act.

“Despite its obligations under the FCRA, Experian fails consumers who dispute information in their consumer reports at every stage of the dispute process,” the Experian lawsuit claims. 

Experian refuses to investigate hard inquiry disputes, suit says

The CFPB argues errors in consumer reports can have a “significant” impact on consumers, including by resulting in the denial of credit, employment or housing, and being offered less favorable credit terms. 

“When consumers disputed errors on their credit reports, Experian conducted sham investigations rather than properly reviewing the disputes as required by federal law,” said CFPB Director Rohit Chopra, in a statement. 

The lawsuit claims Experian also fails to reinvestigate a “significant number” of disputes within the timeline required by the FCRA and refuses to investigate hard inquiry disputes and ensure previously deleted tradelines are not improperly reinserted into a consumer’s file. 

The CFPB requests injunctive relief and for Experian to be assessed civil money penalties and be ordered to pay redress to consumers harmed by its alleged conduct. 

The CFPB last month filed a separate lawsuit against the operator of Zelle and three of the largest banks in the U.S. over claims the banks failed to protect consumers from fraud on the Zelle peer-to-peer payment platform. 

Have you made a dispute on a consumer report to Experian that you believe it failed to reasonably reinvestigate? Let us know in the comments.

The CFPB is represented in-house by Max Weinstein, Colin Hector, Alexander Johnson-Lee, Daniel Cheriyan, Elizabeth Anne Aniskevich and Jennifer B. Yadoo.

The Experian lawsuit is Consumer Financial Protection Bureau v. Experian Information Solutions Inc., Case No. 8:25-cv-00024, in the U.S. District Court for the Central District of California.

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