The Federal Trade Commission (FTC) has initiated an inquiry into the small business credit reporting system and has issued information requests to five major companies in the industry: Dun & Bradstreet, Experian Information Solutions, Equifax, Ansonia Credit Data, and Creditsafe USA. While consumers have protections under the Fair Credit Reporting Act, there is no equivalent federal law for small businesses regarding credit reporting.
Errors on a small business credit report can have significant consequences, such as credit denial or loss of potential business opportunities. The FTC aims to understand how these companies gather information, utilize algorithms and automated systems, ensure accuracy, handle disputes, market their reports, and provide services to monitor and enhance credit reports. This inquiry follows the FTC’s previous lawsuit against Dun & Bradstreet, highlighting deceptive practices and lack of a reliable process for small businesses to correct errors. The companies have 90 days to respond to the information requests.
Report: Federal Trade Comission
