Experian Accused of “Sham Investigations” into Consumer Complaints

The Consumer Financial Protection Bureau sued Experian on January 7, 2025. The CFPB accuses Experian of conducting insufficient investigations into consumer complaints of errors in credit reports. © Sinenkiy from Getty Images

The Consumer Financial Protection Bureau aims to promote fairness and transparency in the financial services sector. The independent agency believes that Experian has been dropping the ball and has decided to take action.

“Experian does not properly investigate disputes and fails to remove or reinsert errors on reports, threatening consumers’ access to credit, employment, and housing,” the CFPB stated when announcing its lawsuit. © ajay_suresh, CC BY 2.0 via Wikimedia Commons

Credit reports decide the type of housing and financial opportunities you receive. A high credit score can help you secure lower interest rates on a loan, while lower credit scores can keep you in debt longer. You may also have access to less capital if you don’t have a good credit score.

The major credit bureaus – Experian, Equifax, and TransUnion – store information that creditors pull from your report. Inaccurate items can unfairly drag a consumer’s credit score lower and result in fewer opportunities. © doockie from Getty Images

The CFPB announced their lawsuit against Experian in a recent X post, and the comments were positive. One user said that it’s about time someone took a stand against Experian, while another thanked the CFPB.

One user mentioned that Experian currently won’t delete an inaccurate collection on his credit report even though he provided proof. Another user suggested banning credit reports, social credit, and predatory financial organizations. © Nicola Barts from Pexels

Experian reported its Q3 FY25 results on January 15, 2025, shortly after getting sued. The earnings report showcased 6% year-over-year revenue growth and a slight year-over-year dip in net income.

Experian stock is up by 10% over the past year. Shares have also gained 29% over the past five years. © Mutlu Kurtbas from Getty Images Signature

Experian has been a winning proposition for investors, but the CFPB has shined a light on the credit bureau’s shortcomings toward consumers. The independent agency also has the authority to act against institutions that violate consumer financial protection laws.

The lawsuit “seeks to stop the company’s unlawful conduct to provide redress for harmed consumers, and the imposition of a civil money penalty, which would be paid into the CFPB’s victims relief fund.” © Morakot Kawinchan from Getty Images