WASHINGTON (AP) — Mississippi has sued Experian, the world’s largest firm that collects detailed information about consumers to evaluate their financial trustworthiness. The lawsuit — and a separate investigation of the industry by 32 other states led by Ohio — represent a significant new legal challenge to the industry over allegations of paperwork errors and violations of consumer protection laws.

Errors can jeopardize people’s ability to get loans and pass job-related background checks. Experian has even wrongly reported that consumers are on a federal terrorism watch list, the lawsuit alleges.