The nation’s three major credit reporting agencies have reached a settlement with 31 state attorneys general to make the correction procedures of credit reports easier and improve customers protections.
The $6 million agreement was signed recently between Equifax Information Services LLC, Experian Information Solutions Inc. and TransUnion LLC, and attorneys general including Attorney General Tom Miller.
Under the settlement, it is mandatory for the agencies to improve other business policies. Monitoring of data furnishers of the agencies must be increased, direct-to-consumer marketing will have to be limited, information for a credit report will be limited and additional consumer education will have to be provided. The agencies must also abide by state and federal laws as well as the Fair Credit Reporting Act.
The changes will be implemented in three phases by three years and 90 days of the settlement.
“We’ve had many complaints over the years about credit reporting agencies not fixing their own mistakes on peoples’ credit reports, and it has been difficult, and in some cases impossible, for consumers to push them to correct it,” Miller said.
“Credit reports are vital to consumers. They can affect peoples’ abilities to secure jobs, homes and vehicles. These reports must be accurate,” he added.
Through agreement, the agencies will give over $106,000 to a State of Iowa consumer education and litigation fund.