Credit reports play an important role in the lives of consumers. As the range and frequency of decisions that rely on credit reports have increased, so has the importance of assuring the accuracy of the reported consumer data. The Credit Reporting Agencies (“CRAs”) and the data furnishers who report information about borrowers both play roles which affect the accuracy of the information reported. For purposes of this survey, data furnishers will more specifically be referred to as financial institutions. Ultimately, inaccurate information may lead to incorrect actions which may impact both decision makers and consumers. The Fair Credit Reporting Act (FCRA), and its implementing regulations, impose legal duties on CRAs and on financial institutions for the accuracy and integrity of credit report information. The Consumer Financial Protection Bureau’s (“CFPB”) in its oversight role and consumer advocacy lens, has also driven increased scrutiny and examination of the processes that support data accuracy and integrity.
To help with these challenges, the KPMG LLP Credit Risk Management practice commissioned a survey of financial institutions to provide insight into current industry practices and issues associated with credit bureau reporting, results of which are summarized in this white paper.