Add this to the financial fallout from the pandemic: More consumers are complaining about errors on their credit reports, and many are frustrated when trying to fix the mistakes, according to federal complaint data.
In 2020, consumers filed more than 280,000 complaints about credit reporting issues — more than half of all complaints received last year by the Consumer Financial Protection Bureau, said Syed Ejaz, a policy analyst for Consumer Reports.
The number of credit-reporting complaints more than doubled from 2019, according to the agency's online complaint database.
"They certainly have ballooned over the past year," Ejaz said.
Credit-report errors have long been a problem for consumers. Accuracy matters because your credit report help determine whether you can qualify for loans and credit cards and what interest rate you will pay.
Common mistakes include loans that have been repaid but appear as unpaid; debts incorrectly reported as being in collection; incorrect personal information and addresses; and "mixed" files, in which information from a different person appears in your credit report.
But mistakes are an even bigger worry during the pandemic, when many families are struggling and may not have time to negotiate corrections, said Chi Chi Wu, a lawyer with the National Consumer Law Center.
Some of the mistakes are pandemic-related. The federal government's relief program allowed a pause in the repayment of certain loans — including federally backed mortgages and federal student loans. Borrowers' credit reports are supposed to show the loans as current. That has not always worked as planned, according to complaints filed with the consumer bureau.