"When First Investors discovered the problem in April 2011, it notified the vendor but did nothing more," the CFPB said in a press release on Wednesday. "The company did not replace the system or take any steps to correct the inaccurate information it had supplied. It continued for years to use a system that it knew was flawed. Tens of thousands of consumers were likely subject to these systemic reporting problems."

In addition to paying the fine, the CFPB has ordered First Investors to correct the mistakes that were reported.

"First Investors showed careless disregard for its customers' financial lives by knowingly distorting their credit profiles for years," said CFPB Director Richard Cordray.

He added, "Companies cannot pass the buck by blaming a computer system or vendor for their mistakes. Today's action sends a signal that the CFPB will hold companies accountable for sending inaccurate information to credit reporting agencies."

In a statement emailed to CU Times Wednesday, First Investors said, "The consent order follows an investigation during which the CFPB examined many aspects of First Investor's business and its compliance procedures."

The statement continued, "At the conclusion of its investigation, the CFPB identified certain First Investor practices relating to the furnishing of account information to the consumer reporting agencies it believes could have been better handled. To resolve the matter and to avoid the expense and business disruption associated with defending any lawsuit, First Investors elected to settle the CFPB's claims rather than dispute them in court. First Investors has not admitted any wrong doing."

"First Investors, like many companies, relies upon an industry-leading service provider to furnish its account information to the consumer reporting agencies. When issues were identified, First Investors worked with its service provider to correct them," the company said.

All of the issues described in the consent order were reported by First Investors to the CFPB and were either corrected or in the process of being corrected when reported, First Investors said.

"The CFPB's consent order acknowledges that First Investors timely responded to any consumer dispute and corrected the furnished information when necessary. The consent order also makes clear that the furnishing issues identified affected between 1% and 12% of First Investors accounts."

The statement also read, "First Investors takes its federal and state law compliance obligations very seriously. Having reached a settlement with the CFPB, First Investors looks forward to continuing to serve its customers."