topic SmartMoney: Why the Credit Bureaus Can't Get It Right in Credit in the News

SmartMoney: Why the Credit Bureaus Can't Get It Right

mrreynolds — Fri, 09 Nov 2012 05:30:00 GMT

I don't know if this in circulation. I just wanted to share an interesting article that I found on the procedures of the CRA's.

SmartMoney Article

New York Times Article

How NYC handles CA debt validation:

NYC Dept of Consumer Affairs Pages 3 & 5

Re: SmartMoney: Why the Credit Bureaus Can't Get It Right

my-own-fico — Thu, 08 Nov 2012 22:43:55 GMT

You have to wonder if one regulated public non-profit agency wouldn't be better than several unpredictable private for-profit agencies.

Re: SmartMoney: Why the Credit Bureaus Can't Get It Right

Revelate — Fri, 09 Nov 2012 18:17:16 GMT

my-own-fico wrote:
You have to wonder if one regulated public non-profit agency wouldn't be better than several unpredictable private for-profit agencies.

I'd give it a 7% chance of being successful within a decade, and maybe 19% of being successful within two decades of the project start. That's after tremendous cost overruns too; infrastructure historically is just not something the government does well and it's likely to get worse before it gets better as well. Forking over a bunch of tax dollars to Deloitte, Ernst, Accenture et al for yet another suboptimal system, pass.

Open market almost always does better: I'd rather have the banks and CRA's competing to get it right rather than take it out of their hands. It's not ideal now, but I just don't think the government would get it right either. Lessons learned private sector takes eons to be learned in the public one.