WASHINGTON (AP) — One in four consumers found an error in a credit report issued by a major agency, according to a government study released Monday.
The Federal Trade Commission study also said that 5 percent of the consumers identified errors in their reports that could lead to them paying more for mortgages, auto loans or other financial products.
The study looked at reports for 1,001 consumers issued by the three major agencies — Equifax, Experian and TransUnion. The FTC hired researchers to help consumers identify potential errors.
The study closely matches the results of a yearlong investigation by The Columbus Dispatch. The Ohio newspaper's report last year said that thousands of consumers were denied loans because of errors on their credit reports.
The FTC says the findings underline the importance of consumers checking their credit reports.
Consumers are entitled to a free copy of their credit report each year from each of the three reporting agencies.
The FTC study also found that 20 percent of consumers had an error that was corrected by a reporting agency after the consumer disputed it. About 10 percent of consumers had their credit score changed after a reporting agency corrected errors in their reports.
The Consumer Data Industry Association, which represents the credit reporting agencies and other data companies, said the FTC study showed that the proportion of credit reports with errors that could increase the rates consumers would pay was small.
The study confirmed "that credit reports are highly accurate, and play a critical role in facilitating access to fair and affordable consumer credit," the association said in a statement.
Experian, a British company with international operations, also said in a statement the study confirms that consumer credit reports are predominantly accurate. At the same time Experian said it "is not satisfied with this result and we continue to work toward ensuring credit reports are 100 percent accurate."
The new U.S. Consumer Financial Protection Bureau has the authority to write and enforce rules for the credit reporting industry. In September the agency began ongoing monitoring of the credit agencies' compliance. It's the first time they have faced such close federal oversight.
The CFPB hasn't yet taken any public action against the agencies. However, it is accepting complaints from consumers who discover incorrect information on their reports or have trouble getting mistakes corrected. The agencies have 15 days to respond to the complaints with a plan for fixing the problem; consumers can dispute that response.
By contrast the FTC can only take action if there is an earlier indication of wrongdoing. It cannot demand information from or investigate companies that appear to be following the law.
Today is Friday, May 24, the 144th day of 2013. There are 221 days left in the year. 1863 -- 150 years ago: A military escort will be at the square at 9 a.m. tomorrow forthe funeral of Lieut. Joseph Eaton. The county judge is absent in Chicago, which willaccount for his not being in the procession. 1888 -- 125 years ago: Rock Island's City Council last night appropriated $95,000 forexpenses for the 1888 and 1889 fiscal year. 1913 -- 100 years ago: Mrs. F.W. Reimers last night was re-elected president of the RockIsland Musical Club at a meeting in the New Harper Hotel. 1938 -- 75 years ago: Seven members of Boy Scout Troop 21 got their Eagle badges lastnight. They were Ralph Hurt, Robert Nelson, Howard Schersten, Cecil Nelson, RobertFryxell, Clarence Stone and Rollin Hurt. 1963 -- 50 years ago: Mayor Morris Muhleman has resorted to a form letter in an effort toanswer objections to the wheel tax increase. "It was my hope that I could, in some way,restore the faith of the citizens in our city. In order to do this I knew I must face the factthat I would become very unpopular."All they are trying to do is protect the citizensproperty and build their town. 1988 -- 25 years ago: RICCA, the Rock Island County Council on Addictions, inconjunction with the Quad City Downs, will hold its annual "Night at the Races" June 2.The benefit "Night at the Races" will raise funds locally to assist in maintaining the twohalfway houses, New Hope Lodge (for women) and Beacon House (for men).