Re: What you should know about the Dodd-Frank Act
10-25-2010 10:53 PM
I personally believe there should be FULL disclosure of all of EVERY lender's underwriting criteria, available on the Internet, including the origin of the credit scores used (tell us if it's FICO or FAKO), so that everyone could determine if they will be approved BEFORE possibly wasting an inquiry, and spending the time to do an app for nothing. Nondisclosure should have a fine attached to it, with half of the fine going to the potential borrower. I also believe that the auto dealers, bank's new account dept, insurance companies, and potential employers (anyone and everyone who has a *reason* to pull a credit report) should be subject to the new rules, as well. And, as long as we're going, all those companies who do "soft" pulls to make credit offers should be required to drop us a note in the mail if they pull also. And lastly, we the people, should be allowed to choose which companies are allowed to do a "soft" pull. For example, if I don't want B of A to do soft pulls to offer me a credit card, I can say NO, just to B of A, and , if I like Wells Fargo, I can say OK to only Wells Fargo. And again, any violation has a fine, half payable to the individual whose report/score, is pulled.
I agree 100%, but it is doubtful this will ever happen. They would argue that they should not have to give up their proprietary information, but I think there may be some stuff that they use to judge scores that are less than kosher. Plus the companies who charge "application fees" will get less revenue because if you know whether or not you are going to get approved, less people would apply.