State Farm Bank, FSB
The Bureau of Consumer Financial Protection (Bureau) today announced a settlement with State Farm Bank, FSB, a federal savings association headquartered in Bloomington, Ill.
As described in the consent order, the Bureau found that State Farm Bank violated the Fair Credit Reporting Act, Regulation V, and the Consumer Financial Protection Act of 2010 by obtaining consumer reports without a permissible purpose; furnishing to credit-reporting agencies (CRAs) information about consumers’ credit that the bank knew or had reasonable cause to believe was inaccurate; failing to promptly update or correct information furnished to CRAs; furnishing information to CRAs without providing notice that the information was disputed by the consumer; and failing to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information provided to CRAs.
Under the terms of the consent order, State Farm Bank must not violate the Fair Credit Reporting Act or Regulation V and must implement and maintain reasonable written policies, procedures, and processes to address the practices at issue in the consent order and prevent future violations.
Credit Reporting
Your credit report affects your ability to get a loan as well as the interest rate you will be required to pay. Congress has passed credit reporting legislation to give consumers access to their credit information and protect them from unfair, fraudulent, or deceptive credit practices.
These laws make it possible for you to
- request your credit report and correct any errors you find.
- receive information about why a lender denied you credit or increased the cost of credit to you.
- protect your identity.
- place a fraud alert on your credit reports.
- file credit-reporting complaints.
Fair and Accurate Credit Transactions
The Fair and Accurate Credit Transactions Act (FACTA) provides you with better access to your credit information. Under FACTA, consumers are entitled to one free credit report every 12 months from each of the three credit bureaus (Equifax, TransUnion, and Experian). Reviewing these reports allows you to correct any errors in your credit history and protect your credit identity. Learn more about identity theft on the Federal Trade Commission website and in the OCC’s “Answers About Identity Theft.”
To order your free credit reports,
- visit annualcreditreport.com, or
- call (877) 322-8228, or
- complete the Annual Credit Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Do not contact the three nationwide consumer reporting companies individually.
Fair Credit Reporting
The Fair Credit Reporting Act (FCRA) regulates the consumer credit reporting industry. In general, the FCRA requires that industry to report your consumer credit information in a fair, timely, and accurate manner. Banks and other lenders use this information to make lending decisions. If a lender denies credit or increases the cost of credit to you, it must give you the name and address of the consumer reporting agency from which it received your report. Under the FCRA, you have the right to review that report and correct any errors that may be in it. Read “Credit and Your Consumer Rights” on the Federal Trade Commission website and see the OCC’s “Answers About Credit Reports.”
Learn More
Fair Credit Reporting Act fact sheet, part of the BankWise series
https://www.consumerfinance.gov/enforcement/actions/state-farm-bank-fsb/https://www.occ.treas.gov/topics/consumers-and-communities/consumer-protection/credit-reporting/index-credit-reporting.html
