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How Credit Reporting Errors Impact Military Families
Credit bureaus routinely fail consumers, carrying a significant cost
A report released by the Consumer Financial Protection Bureau (CFPB) exposed the financial harms to military families caused by faulty credit reporting.
According to the report, servicemembers told the CFPB about billing inaccuracies and that debt collectors used aggressive tactics to recover allegedly unpaid medical bills. Servicemembers also reported failures by credit reporting companies in helping to resolve inaccuracies and other credit reporting issues.
In a statement, the CFPB said these failures of credit reporting and debt collection systems can impact financial readiness.
“Errors on credit reports can jeopardize servicemembers’ financial readiness, and ultimately, their ability to protect our nation,” said CFPB Director Rohit Chopra. “No servicemember, veteran, or military family should be subject to credit reporting rumors and innuendo, nor should they feel coerced to pay a bill they do not owe.”
The report noted the special harms that may be caused to members as a result of faulty credit reporting. In fact, servicemembers may be at particular risk from harm caused by coercive credit reporting tactics, given that negative items on…
