The Consumer Financial Protection Bureau was questioned by Sen. Sherrod Brown, D-Ohio, about problems with the credit reporting system in a study the agency released last week.
The CFPB found that consumers disputed upwards of 38 million items on their credit reports last year.
"Sen. Sherrod Brown, D-Ohio, expressed concern about credit report inaccuracies during a hearing on the issue, warning that the industry is often profitable for lenders and the credit reporting agencies, but difficult for consumers to navigate," writes American Banker's Victoria Finkle.
Brown challenged Corey Stone, assistant director for deposits, cash, collections and reporting markets at the CFPB.
"Under the law, credit bureaus and creditors have some general commands but few concrete obligations," said Brown, who chairs the Senate Banking Subcommittee on Financial Institutions. "Too often the burden is on the consumers, who don't know enough about their credit reports, or who don't have time to navigate the arcane and confusing system."
The report from the CFPB, created under the Dodd-Frank Act, found that complaints from credit bureaus are referred and taken at their word, while some evidence and supporting documentation must be provided by the consumers.
For the full piece see "Senate Banking Panel Questions CFPB On Credit Score Study" (may require subscription).