Credit reporting agencies play a critical role in determining consumers’ financial health, but they are not without controversy. Consumers often encounter issues related to inaccuracies, delayed updates, and miscommunications in their credit reports, leading to significant frustration. These problems can result in denied loans, increased interest rates, or other financial challenges, making the stakes particularly high. How many complaints do the credit reporting agencies receive?
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: Credit Scoring: A Cornerstone to Credit Extension and Management
Complaint Volume for Credit Reporting Agencies over Last 5 Years
- 2023 – 1,309,800
- 2022 – 978,900
- 2021 – 710,300
- 2020 – 319,300
- 2019 – 154,500
Source: CFPB, “Consumer Response Annual Report,” 2019-2024
About Report
Credit scoring methods that have been in use for years are widely recognized for their accuracy and reliability in evaluating consumer creditworthiness. FICO Score 8, the most widely used credit score in the U.S., is a key tool for lenders due to its effectiveness in predicting consumer behavior and credit performance. While traditional models remain essential, advancements are ongoing, and the integration of alternative data is helping lenders reach consumers with limited or no credit history.
This report from Javelin Strategy & Research explores the landscape of credit scoring, analyzing the evolution of traditional models, the rise of alternative scoring techniques, innovative products in the field, and how lenders can utilize these tools to better meet customer needs.
