Dialogue involving the three largest credit bureaus and attorneys general resulted in a strategy the data and information providers contend will improve the consumer material finance companies leverage during the underwriting and buying process for vehicle installment contracts.

The Consumer Data Industry Association (CDIA) said on Monday that Equifax, Experian and TransUnion created the National Consumer Assistance Plan, which is designed to enhance their ability to collect complete and accurate consumer information and provide consumers more transparency and a better experience interacting with credit bureaus about their credit reports.

The plan was announced after cooperative discussions and an agreement with New York Attorney General Eric Schneiderman.

“The National Consumer Assistance Plan we are announcing today will enhance our ability to offer accurate reports and make the process of dealing with credit information easier and more transparent for consumers,” CDIA president and chief executive officer Stuart Pratt said on behalf trade association representing the consumer data industry, including the three national credit reporting agencies.

“While we are pleased that the most recent comprehensive study by the Federal Trade Commission showed that credit reports are materially accurate 98 percent of the time, we are always looking for ways to improve our procedures, and this consumer assistance plan will allow us to do that,” Pratt continued.

“While all three nationwide credit bureaus have been and continue to operate in compliance with the applicable federal and state laws, we have never hesitated to go beyond the letter of the law to voluntarily improve the existing credit reporting environment,” he went on to say.

During discussions over recent months, CDIA noted the New York Attorney General and other state attorneys general allowed the credit reporting agencies to collaborate on what officials called an “unprecedented” manner to share industry best practices and develop a plan that will offer consistent and meaningful benefits to consumers.

The National Consumer Assistance Plan focuses on enhancements in two primary areas: consumer interaction with national credit reporting agencies and data accuracy and quality.

Consumer experience highlights include:

— Consumers visiting www.annualcreditreport.com, the website that allows consumers to obtain a free credit report once a year will see expanded educational material.

— Consumers who obtain their free annual credit report and dispute information resulting in modification of the disputed item will be able to obtain another free annual report without waiting a year.

— Consumers who dispute items on their credit reports will receive additional information from the credit bureaus along with the results of their dispute, including a description of what they can do if they are not satisfied with the outcome of their dispute.

— The credit reporting agencies are focusing on an enhanced dispute resolution process for consumers that are proven victims of identity theft and fraud, as well as those involved in mixed file situations.

CDIA mentioned the data accuracy and quality highlights include:

— Medical debts won’t be reported until after a 180-day “waiting period” to allow insurance payments to be applied. The credit reporting agencies will also remove from credit reports previously reported medical collections that have been or are being paid by insurance.

— Consistent standards will be reinforced by the credit bureaus to entities that submit data for inclusion in a credit report (data furnishers).

— Data furnishers will be prohibited from reporting authorized users without a date of birth and the CRAs will reject data that does not comply with this requirement.

— The credit reporting agencies will eliminate the reporting of debts that did not arise from a contract or agreement by the consumer to pay, such as tickets or fines.

— A multi-company working group will be formed to regularly review and help ensure consistency and uniformity in the data submitted by data furnishers for inclusion in a consumer’s credit report. 

“The current work done by the nationwide credit reporting agencies creates a market that is fair and focused on the needs of more than 200 million credit-active consumers in the United States,” Pratt said. “The National Consumer Assistance Plan will make their credit reporting experience simpler and more transparent.”

Pratt went on to mention the National Consumer Assistance Plan will build on other steps the credit bureaus have made in recent years to improve consumers’ ability to resolve issues related to credit reports.

In 2013, the companies launched a process under which consumers can upload documents digitally to dispute how their lenders have reported their accounts to the credit bureaus.

CDIA indicated implementation of the consumer assistance plan will begin over the next few months.

In addition to the announcement Monday, the association pointed out dialogue continues with additional attorneys general, and further announcements could be made in coming months.

“Credit reports touch every part of our lives. They affect whether we can obtain a credit card, take out a college loan, rent an apartment, or buy a car — and sometimes even whether we can get jobs,” Schneiderman said. “The nation’s largest reporting agencies have a responsibility to investigate and correct errors on consumers’ credit reports. This agreement will reform the entire industry and provide vital protections for millions of consumers across the country. I thank the three agencies for working with us to help consumers.”