Consumer credit reports contain many errors, causing some consumers to pay higher rates for loans, the Federal Trade Commission said Monday.
The FTC found high error rates in credit reports from the three major credit agencies — Experian, Equifax and TransUnion — in its ongoing study of the credit-scoring process, it said Monday. One in four participants in the study found errors in at least one of their reports from the three major agencies. Of the participants who disputed their score, 80% received some form of modification. In many cases the errors were big enough to affect the terms of a loan; overall, 5% of the study's participants disputed their scores and received a change large enough to lower their credit-risk tier.