A recent report by the Consumer Financial Protection Bureau (CFPB) reveals that significant numbers of service men and woman are having the credit ruined and security clearances revoked based on inaccurate reporting on their Trans Union, Experian, and Equifax credit reports. Service members filed 43,000 complaints with CFPB regarding inaccurate reporting on credit reports, which lowered their credit scores and jeopardized their security clearance. These numbers represent only those that have filed complaints. There are likely thousands more that didn't bother to make a complaint. That is more than 5% from 2021 and more than 21% from 2019. The problem is getting worse.
Service members suffer more damages from inaccurate credit reporting due to the nature of their jobs with the military. Inaccurate credit reporting can jeopardize their ability to secure housing, transportation, other credit, and of course security clearances.
Medical debts is one of the major drivers for credit reporting errors. When service members have to use private healthcare providers the billing becomes complicated and often times bills are not submitted properly or payments are not recorded. The problem is even worse for members of the National Guard who only use government health insurance benefits when on active duty and then switch back to private insurance, if any, when not on duty. Problems have even been reports by veterans receiving benefits through the VA. The result is a growing problem of bad credit among our military.
Even with the recent announcement by TransUnion, Experian and Equifax that they will no longer report medical debts under $500, the problem is sure to continue. The only way to deal with inaccurate credit reporting is to use the Fair Credit Reporting Act to punish furnishers and credit reporting agencies that report inaccurate information. Florida Consumer Lawyers handles FCRA claims. If you have any questions or have been negatively impacted by inaccurate reporting then call us today.