On December 22, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a national lender and originator of subprime auto loans over the company’s alleged violations of Section 623(a)(1)(A) of the Fair Credit Reporting Act (FCRA) (15 U.S.C. § 1681-s2(a)) and Regulation V, 12 C.F.R. § 1022.42(a).
The consent order states that from January 2016 through August 2019 the company furnished information to consumer reporting agencies (CRAs) that contained errors and contradictory information, when it knew or should have known about those errors. For example, the company reported inaccurate dates of first delinquency for delinquent accounts, and also reported dates of first delinquency for accounts that were current or paid in full. The company also failed to update or correct inaccurate information, and it failed to maintain reasonable written procedures for reporting accurate information to CRAs.
The consent order requires the company to pay a $4.75 million civil money penalty, to take actions to correct inaccurately reported information, and to prevent future inaccurate credit reporting.
The post CFPB Enters Into $4.75 Million Consent Order With Subprime Auto Lender and Servicer for FCRA Violations appeared first on Consumer Finance Insights (CFI).