Credit report disputes more common in Black and Hispanic neighborhoods

Americans living in predominantly Black neighborhoods around the U.S. are twice as likely to dispute a mistake on their credit report than people in mostly White neighborhoods, according to federal regulators. And the prevalence of such errors could be hurting some households whose finances took a hit during the COVID-19 pandemic.

So concludes the Consumer Financial Protection Bureau in a report that an analyst said could lead to legal problems for the three major credit bureaus or renew lawmakers' efforts to tighten rules on the companies.

The CFPB "is telling Congress and advocacy groups that it believes racial factors are in play when it comes to credit bureau errors," Jaret Seiberg, an analyst with Cowen Washington Research Group, said in a research note. He also expects the agency to investigate the credit agencies, which could lead to enforcement actions.