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Law Mandating Which CRA the Bank Will Pull

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Senior Contributor

Re: Law Mandating Which CRA the Bank Will Pull

 


@DI wrote:

If a law isn't passed, we consumers just have to continue utilizing the ability to freeze our credit reports of choice. 


 

And that's the only way consumers can deal with it because there will never be a law stating that credit bureaus need to pull the CRA that an individual wants or need to tell you beforehand which CRA they will pull.

IAALBNYL
Message 21 of 47
Super Contributor

Re: Law Mandating Which CRA the Bank Will Pull


@O6 wrote:

 


@DI wrote:

If a law isn't passed, we consumers just have to continue utilizing the ability to freeze our credit reports of choice. 


 

And that's the only way consumers can deal with it because there will never be a law stating that credit bureaus need to pull the CRA that an individual wants.


Maybe I need to reword my subject line.  I am wanting a law passed that mandates creditors to disclose which credit report or reports they plan to pull on the application. 

Message 22 of 47
Senior Contributor

Re: Law Mandating Which CRA the Bank Will Pull


@DI wrote:

@O6 wrote:

 


@DI wrote:

If a law isn't passed, we consumers just have to continue utilizing the ability to freeze our credit reports of choice. 


 

And that's the only way consumers can deal with it because there will never be a law stating that credit bureaus need to pull the CRA that an individual wants.


Maybe I need to reword my subject line.  I am wanting a law passed that mandates creditors to disclose which credit report or reports they plan to pull on the application. 


There will also never be a law which mandates a potential creditor inform you which CRA they intend to pull.

IAALBNYL
Message 23 of 47
Regular Contributor

Re: Law Mandating Which CRA the Bank Will Pull


@O6 wrote:

Maybe I need to reword my subject line.  I am wanting a law passed that mandates creditors to disclose which credit report or reports they plan to pull on the application. 


There will also never be a law which mandates a potential creditor inform you which CRA they intend to pull.


Because underneath the veneer, you're really President Obama?  or secretly part of the finance division of congress?

 

Sorry, I can't help but be irritated every time you spout something as fact when in fact, it is merely your opinion based upon your own experiences within your own jurisdiction which last time I checked is the state far west of everything else in the U.S. (you know the other 47 contiguous states).

Message 24 of 47
Moderator Emeritus

Re: Law Mandating Which CRA the Bank Will Pull

 

 

Please remember to be friendly, supportive and respectful!

 

By accessing and using this community you agree to the User Guidelines & Terms of Service.  Please read them before posting further.

Just puttin' syrup on something, don't make it pancakes.
Message 25 of 47
Regular Contributor

Re: Law Mandating Which CRA the Bank Will Pull

I'm merely stating my opinion in a respectful manner hoping that the poster will seek to render his opinions as such, rather than as fact.

 

There are many people coming to this forum who are not as well educated as he, and I, are.  It is unfortunate when that education can and has been used to espouse opinions, not law.

 

It is the opinion of the poster, not a factual content.  He/she may believe that such a law may never occur, but there are others who believe it will happen.

 

Sadly, the detrimental affect of said opinion CAN be that those looking for hope and/or friendly discussion are shuffled away and stuff their own opinions which may gain steam and, in fact, become a law.

 

All it takes is a few to say, "Hey what if we asked congress to enact a law to ..." and then the ball starts rolling.

Message 26 of 47
Moderator Emeritus

Re: Law Mandating Which CRA the Bank Will Pull

Thanks Hopelives2, for respectfully stating your opinion. Smiley Wink

Just puttin' syrup on something, don't make it pancakes.
Message 27 of 47
Senior Contributor

Re: Law Mandating Which CRA the Bank Will Pull


@Hopelives2 wrote:

I'm merely stating my opinion in a respectful manner hoping that the poster will seek to render his opinions as such, rather than as fact.

 

There are many people coming to this forum who are not as well educated as he, and I, are.  It is unfortunate when that education can and has been used to espouse opinions, not law.

 

It is the opinion of the poster, not a factual content.  He/she may believe that such a law may never occur, but there are others who believe it will happen.

 

Sadly, the detrimental affect of said opinion CAN be that those looking for hope and/or friendly discussion are shuffled away and stuff their own opinions which may gain steam and, in fact, become a law.

 

All it takes is a few to say, "Hey what if we asked congress to enact a law to ..." and then the ball starts rolling.


I have to agree with O6.  I also think it's quite clear that his statements are opinion.  Unless he's learned how to predict the future.

 

In any event, as discussed earlier in the thread, such a law would not be a good idea.  Forcing the company to disclose which report they will pull quite clearly increases the potential risk of abuse.  To counter that, lenders would have a greater incentive to pull from all three CRAs.  This helps no one. 

 

Additionally, it would create all kinds of issues with the business model of the CRAs and their relationship with lenders.  If lenders are forced, or at least have greater incentive, to pull from all three with each application, it gives the CRAs greater bargaining power.  It's difficult to predict how that would manifest itself.  Less price discrimination among the CRAs?  No longer offering exclusive deals for lenders in certain geographical markets?  Perhaps forcing the lenders to pull from all three would increase the cost of applications and result in application fees.  Even if not directly passed to the consumer in the form of fees, you can bet that the lender would not eat the extra cost of having to pull from additional CRAs for each application.  Somehow that cost would be passed on.  I imagine that there would be additional unintended consequences as well.  

 

Also, the suggestion raised above that the lender should have to consider alternate reports is misguided.  Lenders don't have to issue you credit.  If they think that one CRA is the best, most accurate, offers them the best deal, etc., that is the one they can go to.  It doesn't matter if there are inaccuracies on the report because you have no right to a business relationship with that entity.  They are perfectly within their rights to say that they want to exclusively look at EX and accept that they may turn down people who would otherwise be good candidates because a certain fraction of people are going to have inaccuracies on their reports. 

 

Besides, what would it even mean to force them to look at a new report on recon.  Would it mean that they couldn't still deny you on the basis of the first report?  How would you enforce that without forcing them to disclose their lending criteria? 

 


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Message 28 of 47
Regular Contributor

Re: Law Mandating Which CRA the Bank Will Pull

Actually, to say, "That will never happen" is in fact, stating it as a fact.  It is not.

 

While I do not necessarily disagree with him/her, I do not like the consistent espousal of opinion nor broad assumptions, as fact.

 

It would be better served as opinion, as you have done, Walt.

 

I think having the knowledge on paper somewhere that said which bank pulls which credit report stops all incentive for people to broadly clean up their financial reporting (ala credit) messes as the individual could pick and choose which to do where.

 

As you said, it might make banks pull all three and we are back to where we are now only the three CRAs now would make far more money in fees as they charged the bank more money to obtain those reports, which would then get passed back to the consumer, IMO.  (see how that works?  Smiley Tongue

 

Message 29 of 47
Valued Contributor

Re: Law Mandating Which CRA the Bank Will Pull

Well, O6 is stating an opinion. However, his opinion is based upon enough knowlege and experience that you can consider that it is fact. In other words, it is an extremenly good opinion based upon extensive knowledge of the laws and the way the law works at the federal level.

 

Anyone else who is an attorney and has the experience and discipline required to be an O6?

 

 

 

Message 30 of 47
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