The U.S. consumer financial watchdog is reviewing whether credit-reporting agencies are breaking the law by not doing enough to correct potentially erroneous consumer credit reports, an official said on Wednesday.
Corey Stone, an assistant director at the Consumer Financial Protection Bureau, told a U.S. Senate panel that some firms are failing to pass along to creditors all of the documentation that consumers provide when disputing information in their reports.
"We have many tools with which we can make determinations about whether the law is being violated or not. And in this case, that is what is going to happen," Stone said. He did not name specific firms.
Wednesday's Senate Banking hearing came in response to a report issued by the CFPB earlier this month about the credit-reporting industry.
Created by the 2010 Dodd-Frank Wall Street reform law, the CFPB is tasked with protecting consumers from predatory lending practices or other harmful financial products.
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