Credit Cards

[adavis425]

Received this in email today:

The Consumer Financial Protection Bureau (CFPB) will begin supervising the three largest credit bureaus on Sunday, September 30, 2012. Under the new rule, Equifax, Experian, TransUnion and about two dozen other companies involved in credit reporting will be subject to federal oversight.

• Government: The CFPB will begin its supervision on September 30, 2012
• Credit Bureaus: Equifax, Experian, TransUnion will be required to provide updated and more accurate data
• Consumers: Clients will be provided with higher quality credit reports (Quizzle loves this because it will help us give you the best, most accurate and completely free credit report there is!)

Why does the CFPB want to do this? Ultimately, the CFPB is hoping the decision will help you, the consumer, and put a stop to credit report inaccuracies.

Oh, if only....

[Shogun]

I did read this earlier.  I figured since the FTC was basically the legal oversight proper reporting that this was already being done.  I would assume though that if it starts at the end of the month, the CRAs already have their programs in compliance with the rules.

[pipeguy]

I'm generally a pro-business anti-government regulation type of person, but in this case I am thrilled that the big 3 CRA's are getting regulated-oversight.

Credit reporting agencies are legal rackets corrupt in every way. Not only is there no "standard" for reporting, but every CRA sells dozens of different scoring models. CRAs were forced to provide the consumer a look at their reports once a year, kicking and screaming, but not the all important score. CRA's will whore your data to all sides, selling you a score, and notifying CA's and JDB's updates to your file. The now outlawed "universal default" was brought to you by CRA's selling your data. Perfect credit, but too little based on their model means a lower score and higher rates, 1 day late on 30 years of perfect payments and watch your score drop 100 points resulting in higher interest rates. Any black mark, no matter how small, you get 7 years in debtors purgatory - serious felony convictions get less time.

Ever try to correct obvious errors? Don't bother providing 50 pages of proof and documents, the e-Oscar system will reject your claim with anything short of a court order.

I just hope the CFPB has the backbone to fine Equifax, TransUnion and Experian millions of dollars when they uncover the broad corruption that is their business model.

[LS2982]

I like this.

Especially for EX. They can be downright nasty about fixing things.

[youngandcreditwrthy]

AMEN FELLOW FICO'ERS!!!!!

Another thread I read on here mostly had people bashing the government LOL....

I agree with everyone here though, esp LS...EXP is BAAAAAAAAAD about "verifying" info that just simply isn't accurate.

[Walt_K]

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pipeguy wrote:

I'm generally a pro-business anti-government regulation type of person, but in this case I am thrilled that the big 3 CRA's are getting regulated-oversight.

Credit reporting agencies are legal rackets corrupt in every way. Not only is there no "standard" for reporting, but every CRA sells dozens of different scoring models. CRAs were forced to provide the consumer a look at their reports once a year, kicking and screaming, but not the all important score. CRA's will whore your data to all sides, selling you a score, and notifying CA's and JDB's updates to your file. The now outlawed "universal default" was brought to you by CRA's selling your data. Perfect credit, but too little based on their model means a lower score and higher rates, 1 day late on 30 years of perfect payments and watch your score drop 100 points resulting in higher interest rates. Any black mark, no matter how small, you get 7 years in debtors purgatory - serious felony convictions get less time.

Ever try to correct obvious errors? Don't bother providing 50 pages of proof and documents, the e-Oscar system will reject your claim with anything short of a court order.

I just hope the CFPB has the backbone to fine Equifax, TransUnion and Experian millions of dollars when they uncover the broad corruption that is their business model.

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CRAs don't have to provide you with the all important score because it's not theirs to provide.  Information on your credit report and a third party's analysis of that information, e.g., Fair Issac's analysis via a FICO score, are two separate things.  Don't confuse oversight of the CRAs with regulation of FICO scoring or other scoring systems.  It will be good if it is easier to correct incorrect information, but I don't want the government telling FICO how to calculate how much a score should drop from a derogatory mark. 

[pipeguy]

IMO, based on a lot of research FICO is one in the same with CRAs, they are attached at the hip (bank account) working both (all) sides of the "racket'. As I said from the get go, I'm not a big fan of government regulation, but in the case of credit reporting and yes credit scoring, they system is broken as far as being a fair reflection of actual results (reports and or scoring). The current system is designed to make money off of every part of the process, fairness and correctness are hardly an after thought.

[youngandcreditwrthy]

It's jusy very important for credit reports to be ACCURATE and not being raped by a CA just bc a consumer doesn't know to dispute. On this forum, we are at a high advantage here because we know what's legally correct or incorrect.

If inaccuracies can be removed, overall American credit scores can improve thus improving credit quality and availability across the nation!

[youngandcreditwrthy]

Agreed pipeguy.... It's about the consumer here

[CreditScholar]

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youngandcreditwrthy wrote:
It's jusy very important for credit reports to be ACCURATE and not being raped by a CA just bc a consumer doesn't know to dispute. On this forum, we are at a high advantage here because we know what's legally correct or incorrect.

If inaccuracies can be removed, overall American credit scores can improve thus improving credit quality and availability across the nation!

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I'm not sure if I agree with that. I wouldn't say everyone here knows what's correct, nor would I say that everyone here is highly advantaged. Like anywhere else, some are and others aren't.

Credit is too easily obtained and has been for quite awhile. I wouldn't mind seeing some clamp-downs across the board. The lowering of credit standards lately, especially at lenders such as Amex and Chase are of concern. I understand that it is about profitability in the end, but I can't help but wonder if they are doing a disservice to many.