Recent CFPB guidance provides flexibility for investigating consumer credit reporting disputes

On April 1, 2020, the Consumer Financial Protection Bureau (CFPB) provided guidance on how it plans to handle consumer credit reporting oversight during COVID-19. As part of that guidance, the CFPB stated that it intends to provide flexibility for lenders and credit bureaus in regard to the time they take to investigate disputes. As long as lenders and credit bureaus make a good faith effort to investigate disputes as quickly as possible during the COVID-19 outbreak, the CFPB will not take supervisory or enforcement action against them. The CFPB’s guidance also expressly encouraged lenders to continue to voluntarily provide payment relief to consumers and to accurately report information regarding that relief to credit bureaus.