CFPB: Credit Reporting Companies Should Do More for Servicemembers re: Free Credit Reporting Monitoring Services 

If you are on active duty (including an activated reservist) or a member of the National Guard, the Consumer Financial Protection Bureau (CFPB) wants servicemembers to know they can sign up for free electronic credit monitoring from all three major credit reporting companies to ensure your credit report is accurate and up to date. The unique demands and challenges of serving in the military – including permanent change of duty stations and multiple deployments – can make it difficult for servicemembers to review their credit reports, identify suspicious accounts, and dispute inaccuracies. Unsurprisingly, servicemembers report  more cases of identity theft than other adults. The law requires credit reporting companies to offer free services to help servicemembers monitor their credit, but unfortunately, some servicemembers are not receiving them. 

Inaccuracies in credit reporting are all too common. Credit or consumer reporting issues made up 54% of all complaints  to the CFPB submitted by servicemembers in 2022. The CFPB has taken action to address inaccurate information on credit reports, including issuing guidance to consumer reporting companies about their obligation to screen for and eliminate false data from consumers’ credit reports, and shining a light on how changes in consumer reporting companies’ handling of complaints resulted in fewer meaningful responses and less consumer relief. Patterns of inaccuracy are all the more concerning when the credit reporting companies that are reporting inaccurate information are also charging individuals to monitor for those very inaccuracies. 

For servicemembers, having good credit isn’t only important for things like getting a loan – their security clearances, and therefore often their jobs, also depend on it. Due to servicemembers’ unique situations, many feel they must rely on credit monitoring products to stay informed and up to date about their credit history, know what is being reported, and get information that could be helpful to recognize identity theft. 

For more information on how to help your members that serve in the armed forces, click here.