On December 6, 2018, the CFPB announced a settlement with State Farm Bank which is a federal savings association headquartered in Bloomington, Ill. In their consent order, the Bureau explains that they 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.
The CFPB is requiring State Farm Bank to not violate the Fair Credit Reporting Act or Regulation V and to implement and maintain reasonable written policies, procedures, and processes to address the practices at issue in the consent order and prevent future violations.
The consent order is available at: https://files.consumerfinance.gov/f/documents/bcfp_state-farm-bank_consent-order.pdf
The stipulation and consent to the issuance of a consent order is available at: https://files.consumerfinance.gov/f/documents/bcfp_state-farm-bank_stipulation.pdf