ATLANTA--(BUSINESS WIRE)--Feb 11, 2025--
Consumer data furnishers agree the most pressing issues they face with regard to dispute management are data quality, regulatory compliance and the large volume of frivolous disputes they have to process. This is according to findings from the report From Compliance to Operations: Survey on Credit Dispute Management, published on February 11, 2025 by PMG. The report also contains key operating metrics for dispute processing organizations and reveals how industry professionals manage disputes within their organizations.
Nearly two-thirds (62%) of data furnishers surveyed, 84% of whom manage disputes with a 1-to-10-person team, report that their most pressing challenge is identifying trends and root causes of reporting inaccuracies. This was followed by a lack of clarity around what comprises a reasonable investigation standard (59%), insufficient oversight of credit repair organizations (56%), and data security risks and fraudulent data prevention (50%).
A major drain on all data furnishers’ time is the high volume of frivolous disputes received, with one-third (33%) of respondents approximating that more than half of their disputes fall into this category. Anecdotal responses included one survey respondent who said that some consumers file up to 30 indirect disputes over a span of three days.
To lessen their daily workload, 43% of data furnishers said stricter regulations for credit repair organizations would make their jobs easier, and 28% of respondents said criminal penalties for consumers who file falsified ID theft claims on government-issued websites would help.
Other key findings offer a view into the operations side of FCRA and Reg V compliance. Respondents were asked, among other things, about the size of their investigation teams and the volume of disputes they process. While over half (53%) process no more than 250 disputes per month, a full third (34%) report a volume greater than 1,000 disputes per month.
Responses indicating the methodologies and tools used to manage disputes include:
- 86% use the e-OSCAR ® web interface as part of their indirect dispute processing operations, unsurprisingly. However, data furnishers rely heavily on standard office suite tools to complete their jobs (43% for indirect disputes and 77% for direct disputes), indicating that many don’t have a single system to handle all aspects of credit dispute management.
- Most data furnishers want to see advancements in technology before relying on AI and automation – 60% and 50%, respectively. But nearly a third want to leverage technology to a greater extent right now, with 32% supporting implementation of more automation and 27% advocating for more AI adoption.
Notwithstanding the many uncertainties surrounding consumer financial protections and the regulatory outlook regarding consumer credit data, industry participants are looking towards the future.
“Data furnishers are seeking greater understanding from regulators of the practical challenges involved in the investigation and resolution of credit disputes. Clarification of compliance standards and regulatory support to rein in unethical, predatory credit repair organizations would go a long way in facilitating improvements in dispute management,” said Joe LeCompte, Principal and CEO of PMG.
“Waiting for government regulators to act is not the only way to make operational improvements, though. Implementing a solution with a single place to manage and track all of your credit disputes empowers data furnishers to resolve disputes more quickly and efficiently while enhancing compliance.”
For more survey findings, visit https://www.pmg.net/credit-dispute-management-survey/ to download the report, From Compliance to Operations: Survey on Credit Dispute Management.
From Compliance to Operations: Survey on Credit Dispute Management was completed by 129 respondents from various industry sectors. The largest concentrations of respondents were part of the Banking, Secured Credit and Unsecured Credit industry groups. PMG partnered with the Consumer Data Industry Association ( CDIA ) to distribute the survey amongst industry participants. However, PMG conducted the survey and analyzed the results independently and is solely responsible for the content of the report.
About PMG
PMG, a leader in workflow automation for over 25 years, developed Case Central ® for Dispute Management specifically for consumer credit data furnishers. Offered as a secure SaaS application, Case Central supports full compliance with FCRA Reg V guidelines while empowering investigation teams to process disputes 2.5x faster. With an emphasis on user experience, Case Central supports both direct and indirect disputes, and provides a single interface for executing all dispute-related activities. Best of all, evidence for any investigation can be provided in an easy-to-read format with just one click. For more information, visit https://casecentral.pmg.net.
View source version on businesswire.com:https://www.businesswire.com/news/home/20250211951974/en/
CONTACT: Media Contact:
Morgan Meneide
Arketi Group (for PMG)
Mobile: 678-899-2877
KEYWORD: GEORGIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: TECHNOLOGY MOBILE/WIRELESS OTHER PROFESSIONAL SERVICES BUSINESS FINANCE BANKING ACCOUNTING PERSONAL FINANCE PROFESSIONAL SERVICES OTHER TECHNOLOGY SOFTWARE NETWORKS FINTECH DATA MANAGEMENT
SOURCE: PMG
Copyright Business Wire 2025.
PUB: 02/11/2025 01:30 PM/DISC: 02/11/2025 01:30 PM
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