US consumer watchdog sues Experian over consumer credit accuracy

(Reuters) - The top U.S. watchdog agency for consumer finance on Tuesday sued credit rating giant Experian (OTC:EXPGF ), saying the company failed American consumers who challenge the accuracy of consumer credit files, court records show.

Through a California subsidiary, the Ireland-based global data broker maintains crucial files on most American families but allegedly mishandles their complaints, damaging household finances in the process, the agency said in a statement.

Experian conducts "sham investigations" into consumer disputes and allows deleted false information to be reinserted into credit files, according to the CFPB.

Representatives for Experian did not immediately respond to a request for comment.



"Credit reporting errors can have serious consequences for a family's finances and it is critical that credit reporting giants follow the law," CFPB Director Rohit Chopra said in a statement.

The complaint seeks a court order barring Experian from further misconduct and requiring the company to pay redress to harmed consumers, to forfeit any resulting ill-gotten gains and to pay a fine.

Source: Investing.com