I have picked on Equifax a lot over the years. But I have to tell you, according to recent research from ProPublica, Equifax is actually doing a significantly better job of handling customer complaints than its competitors.
Now, don’t get me wrong — they aren’t doing an outstanding job. But compared to the other two major credit bureaus, the difference is night and day.
The Disaster at the Credit Bureaus
A recent deep-dive study by ProPublica examined how Equifax, TransUnion, and Experian handle the skyrocketing number of consumer complaints about inaccuracies on credit reports. Over the last two years, the number of people finding errors in their files and filing complaints has absolutely exploded.
The question is: How are these companies dealing with those complaints?
Equifax
In a typical month, Equifax receives about 160,000 complaints from consumers who have spotted errors in their credit files. Out of those, they solve about 100,000. For an industry that has historically treated consumers like a total bother, that is actually better than I would expect.
TransUnion
If you think Equifax’s numbers are mediocre, let’s talk about TransUnion. The latest data shows they are only resolving about a third of the complaints filed. It’s as if they are looking at consumers and saying, “Who? Us? What?”
Experian
Then there is Experian. The data here is beyond pathetic—it is truly shocking. Experian’s success rate in dealing with consumer complaints is less than 1%. That’s right; fewer than one in a hundred people who contact Experian with a legitimate problem get it resolved.
Why These Errors Matter
This is beyond outrageous because an error on your credit report isn’t just a typo; it has real-world consequences. An error can lead to:
Denial of a loan or mortgage.
Credit card companies closing your accounts.
Losing out on a job because an employer thinks you aren’t “responsible.”
Insurers denying you coverage or charging you much higher premiums.
How To Protect Yourself
In this environment, what you don’t know can hurt you. Here is the two-step plan to make sure your credit is accurate:
Check your reports regularly: When was the last time you looked at what the bureaus have on you? You can see your actual reports for free at AnnualCreditReport.com. Ignore all the “fluff” and products; just look at the data. You can also sign up for Credit Karma to monitor your information at two of the three bureaus for free whenever you want.
Know the odds: If you find a mistake and challenge it, know your odds. Based on ProPublica’s research, you have a decent shot of getting it fixed with Equifax. With TransUnion, you have a one-in-three shot. And with Experian? You have a less than 1% chance of success through their standard channels.
What To Do When They Ignore You
In the past, the Consumer Financial Protection Bureau (CFPB) was much more effective at forcing these companies to do their jobs. Unfortunately, that success rate has dropped.
So, what power do you have left? You might be surprised, but your most effective tool is Small Claims Court.
If a credit bureau is putting inaccurate information in your file and refusing to fix it, you can sue them. The filing fees are low, and you don’t need a lawyer.
The moment you file that suit, the credit bureau usually hands your file to someone who actually has the authority to look at your complaint and fix the error. Why should it have to be this way? It shouldn’t. But if a severe error is impacting your ability to get a job, keep your insurance, or buy a home, you have to use the law to protect yourself.
The law requires these bureaus to provide accurate information. If they won’t follow the law voluntarily, you have to hold them accountable.
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