COLUMBUS, Ohio — Three nationwide credit reporting agencies have agreed to fix disputed information on credit reports more quickly, wait longer before adding potentially damaging information on medical debt and scrutinize certain data furnished by outside entities, according to a multistate settlement announced Wednesday.
Ohio Attorney General Mike DeWine announced the pact that Equifax, Experian and TransUnion struck with attorneys general in 31 states. It calls for the agencies to pay a combined $6 million to participating states and to adjust a host of business practices over the next three years.
Besides Ohio, states in the settlement were Alabama, Alaska, Arizona, Arkansas, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Missouri, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont and Wisconsin.
Arkansas will receive $113,876.33 under the terms of the settlement, Arkansas Attorney General Leslie Rutledge said in a statement.
“Arkansas consumers should be able to trust that they will receive a fair and accurate representation of their credit from any reporting agency,” Rutledge said.
“These three agencies broke that trust and are being held accountable for their actions. This settlement will ensure proper safeguards are in place so that consumers are not provided with errors and misinformation about their credit.”
The agreement requires agencies to:
— Maintain information about problems with entities that furnish them data — such as collection agencies, department stores or banks — and make that information available to states so patterns can be spotted;
— Use a better, more detailed system to share data with those so-called furnishers;
— Set up a more intensive process for complicated disputes, such as those involving identity theft, fraud or mixed credit files in which two people's identities have been confused;
— Educate consumers about how they can further dispute the outcome of an investigation.
The settlement prohibits credit reporting agencies from adding information about fines and tickets to a consumer's credit report and bars the addition of medical debt until 180 days after it is reported to give consumers time to work with their insurance companies.
It also allows consumers to obtain an extra free credit report in a 12-month period if a charge they dispute turns out to result in a change to their report. Federal law already allows consumers to get a free copy of their credit report once a year from each of the three reporting agencies.