FTC, CFPB Quietly Burying Credit Report Complaints

1 4 minutes read

In early October, Lorena Halseth found herself in need of a new car. Her trusty Subaru had surpassed 100,000 miles and was consuming gas at an alarming rate. Working at a Toyota dealership in South Carolina, she was eager to secure a deal on a more fuel-efficient Camry.

Expecting her credit score to be around 750, Halseth was taken aback when the sales team revealed a shocking revelation after pulling her credit report.

“I was in a state of panic. I had a mini meltdown and immediately called my boyfriend,” Halseth, 48, recounts. “According to Equifax, I’m considered deceased. What do I do now?”

Errors on credit reports can have serious financial consequences. These reports play a crucial role in determining eligibility and interest rates for loans, credit cards, as well as influencing decisions made by employers, landlords, and insurers.

Unfortunately, major blunders like Halseth’s are not uncommon occurrences.

Chi Chi Wu, an attorney and director at the National Consumer Law Center, reveals, “There’s actually a category for cases like this called ‘deceased cases’. This is a recurring issue.”

Quantifying the frequency of such errors is challenging, as tracking complaints has become increasingly difficult. An investigation by Money has uncovered that two key federal agencies responsible for monitoring and assisting individuals with credit-reporting issues – the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) – seem to be downplaying complaints lodged against credit bureaus.

For Halseth, the repercussions of the error extended beyond just missing out on a new car. Her credit score was effectively wiped off the system, putting her financial activities on hold for over eight months and counting. She has spent countless hours sending letters and pursuing legal action in a desperate bid to prove her existence.

With federal oversight dwindling, ordinary individuals like Halseth are increasingly left to navigate these challenges on their own.

A Million Missing Credit Complaints

Credit complaints are formal submissions made by individuals who have encountered inaccuracies, outdated information, or irrelevant data on their credit reports. These complaints also encompass grievances against credit bureaus failing to promptly address disputes or provide free credit reports as mandated by law.

In 2024, the FTC received an unprecedented 1.3 million complaints from Americans regarding issues with their credit reports, marking an 89% surge from the previous year.

The Consumer Sentinel Network, a vast database of aggregated complaints managed by the FTC, has historically served as a critical resource for law enforcement agencies, tracking financial scams, fraud, and identity theft.

While the CFPB has been a primary data partner of the FTC since 2011, recent trends indicate a decline in the monitoring and resolution of formal complaints against major credit bureaus, particularly Equifax, Experian, and TransUnion.

For instance, the FTC reported less than 100,000 credit-report complaints in 2025, a drastic drop of 93% from previous years. However, this decline is not reflective of reduced issues faced by consumers but rather a consequence of a terminated data-sharing agreement between the CFPB and FTC for credit reporting complaints.

The shift in policy was initiated as a cost-saving measure during the latter part of the Biden administration and remains in effect presently. The CFPB did not respond to queries regarding this change.

CFPB Limits New Credit Complaints

The CFPB has been significantly impacted by budget cuts and staffing reductions under the Trump administration, leading to concerns about its ability to assist consumers effectively. Recent developments indicate a deliberate move by the agency to discourage consumer complaints.

As per new guidelines on the CFPB website, consumers are now required to dispute credit reporting issues with the bureaus and wait 45 days before submitting a complaint to the CFPB.

Extensive warnings and alerts have been incorporated into the complaint submission process, deterring individuals from filing complaints directly with the CFPB. Legal experts have criticized these measures as overly aggressive and potentially unlawful.

The Consumer Data Industry Association, a lobbying group representing credit bureaus, has advocated for these restrictions on complaints to the CFPB. The association’s influence is evident in the recent changes to the complaint process.

With diminished federal oversight from the FTC and CFPB, credit bureaus are less inclined to address consumer complaints, leading to a surge in unresolved credit report issues.

Fighting the Credit Bureaus Alone

Halseth’s ordeal in correcting her credit report serves as a stark reminder of the challenges individuals face in rectifying errors. Following her mother’s passing, administrative tasks turned into a nightmare when credit offers continued to arrive addressed to her deceased parent.

Attempts to notify the credit bureaus of her mother’s passing inadvertently led to Halseth’s own credit file being marked as deceased. Despite the error not affecting her existing accounts, she was barred from accessing her credit report, creating significant hurdles in managing her financial obligations.

Resorting to legal assistance, Halseth has pursued cases against the credit bureaus to rectify the inaccuracies. Legal experts note that such cases are more prevalent than commonly believed, emphasizing the need for stronger oversight to hold credit bureaus accountable.

While filing complaints with the CFPB remains a vital step in establishing a record of grievances, individuals like Halseth may require legal support to navigate the complexities of correcting credit errors.

“A credit score is the key to unlocking opportunities in America,” Halseth reflects. “Without a correct credit report, the system can hold you back from achieving your dreams.”