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U.S. PIRG Consumer Blog
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January 17, 2008
Fifth Third Bank bungles merger, fries "several thousand" credit reports
Richard Burnett of the Orlando (FL) Sentinel is reporting that Fifth Third Bank's error mars credit reports -- Fifth Third says a computer glitch put false information into 'several thousand' customer accounts last month: Fifth Third Bank acknowledged to the Orlando Sentinel this week that a computer glitch related to the recent acquisition of another bank spilled false information into "several thousand" customer accounts, in some cases generating credit-history errors and incorrect credit scores. The problem began last month, when Fifth Third converted files of customers from the former R-G Crown Bank of Casselberry to its own system. Fifth Third, the region's seventh-largest bank, closed its buyout of Crown in mid-November. Cincinnati-based Fifth Third did not say how the glitch occurred but indicated that a third-party vendor was involved.
While the bank is quoted saying all is now well, the story quotes at least one consumer still trying to clean the mess they made of his life. When Congress significantly amended the 1970 Fair Credit Reporting Act in 1996, and then again in 2003, it purportedly imposed duties on creditors to do a better job protecting the accuracy of information that they send to credit bureaus. Unfortunately, significant provisions of that law can only be enforced by somnolent bank regulators, not aggrieved consumers. The result -- banks don't spend as much time and effort on these tasks as they could or should.
Posted by Ed Mierzwinski at January 17, 2008 11:17 AM
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