The CFPB recently released a report on Consumer Credit Disputes finding that consumers in majority Black and Hispanic neighborhoods had a disproportionally higher amount of disputes on their credit reports. The report indicates that this trend was across several credit categories, including auto loans, student loans, and credit cards.
According to the Bureau, credit reports play a critical function in personal finance, as they are used by lending institutions and are often reviewed as part of lease and job applications. Complaints about inaccurate credit reporting has increased more than 100% since the beginning of the COVID-19 pandemic and the process to correct inaccurate credit reporting has been characterized as difficult for consumers to complete.
