FTC Credit Reports Study Shows 5 Percent Errors Can Be Costly

The Federal Trade Commission ("FTC") released its study on Monday which revealed that 5 percent of consumers had errors on one of their three major credit reports, potentially leading to higher costs for loans and insurance. The study, originally commissioned by Congress pertaining to credit report accuracy started in 2004 and continued through 2012. It includes interim reports every two years with a final report in 2014. Selecting 1,001 randomly selected consumers to match the credit score and demographic information of the general public, this was the first time the agency has taken a comprehensive look at all aspects of the credit-reporting process, including consumers, debt-collection agencies, lenders and large credit reporting companies. In addition to the overall errors, the study also reported that: