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CFPB Takes Action against Auto Finance Company for Distorting Borrower Credit Reports
Friday, August 22, 2014 6:40 AM

The Consumer Financial Protection Bureau has taken action against an auto finance company that reportedly distorted consumer credit records for years. Texas-based First Investors Financial Services Group Inc., which lends primarily to subprime borrowers, failed to fix known flaws in a computer system that was providing inaccurate information to credit reporting agencies. This potentially harmed tens of thousands of its customers. The CFPB is ordering First Investors to pay a $2.75 million fine, fix its errors, and change its business practices.

“First Investors showed careless disregard for its customers’ financial lives by knowingly distorting their credit profiles for years,” said CFPB Director Richard Cordray. “Companies cannot pass the buck by blaming a computer system or vendor for their mistakes. This action sends a signal that the CFPB will hold companies accountable for sending inaccurate information to credit reporting agencies.”

A copy of the Consent Order can be found on the CFPB’s website.