After a year of sharing top headlines every week via The Scanner, our readers interact the most with stories concerning the CFPB and their enforcement of the Fair Credit Reporting Act. No news of late has been more pertinent to this topic (or received the most attention from our readers) than that the CFPB is considering a potential rule that takes specific aim at furnishers.
The news was first reported in October of last year by lawyers from Troutman Pepper and was recently reshared on JD Supra. In short, the CFPB is looking to create a new process for consumers on a group basis to dispute information provided by furnishers to Credit Reporting Agencies (CRAs).
Lawsuits like this have been happening to CRAs already. Just look at Xactus’ recent legal battle with a consumer, but this would pave the way for more parties to be liable.
For the first time, furnishers could have class action lawsuits more easily brought against them. This has the potential to affect 10,000 companies that report 1.3 billion items of data to CRAs.
We will continue to monitor this situation and be sure to update our readers as more news is released.