In a blog postthe Consumer Financial Protection Bureau (“CFPB”) disclosed that it had letters sent request information from credit card issuers about why actual payment histories are often not reported to credit bureaus.
To date, a combination of systems, technology and operational issues has generally prevented the provision of this information by credit card issuers, who report monthly on the status of credit card accounts. Under the Fair Credit Reporting Act, companies that have consumer credit usage information have the ability to “provide” that information to the credit bureaus. However, the CFPB interpreted a creditor’s failure to report information to the credit bureaus as potentially misleading (see Review Procedures, FCRA, page 53). As a result, this CFPB investigation appears to set the stage for the CFPB to conclude that failure to provide actual payment histories to credit bureaus is also potentially misleading. Although the CFPB to research on this topic from 2020 suggests that including actual payment histories could increase consumer credit scores by up to 20 points, this level of granular detail could also be potentially problematic for credit applicants.