The three national credit reporting agencies have agreed to change business practices that sparked consumer complaints and pay $6 million to 31 states, including Maryland, under a settlement announced Wednesday.
The agreement with Equifax Information Services LLC, Experian Information Solutions Inc. and TransUnion LLC resolves a multiyear investigation of consumer disputes about the accuracy of credit reports, attorneys general in those states said.
"This settlement helps ensure more accurate credit reporting and provides consumers greater control over the financial records that are compiled by the credit reporting agencies," Attorney General Brian E. Frosh said in an announcement of the settlement.
It calls for credit reporting agencies to increase their monitoring of creditors, lenders, utilities and debt collection agencies that report payment histories to credit bureaus. The agencies also agreed to limit marketing of credit monitoring products to consumers who call to dispute credit information.
Under the settlement, credit reporting agencies are prohibited from placing medical debt on a credit report until 180 days after the account is reported to the agency, giving consumers time to resolve debt with their insurance companies.