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Govt to supervise credit reporting for first time
AP ^ | July 16, 2012

Posted on 07/16/2012 1:31:25 PM PDT by BAW

The companies that determine Americans' credit scores are about to come under government oversight for the first time.

The Consumer Financial Protection Bureau said Monday that it will start supervising the 30 largest firms that make up 94 percent of the industry. That includes the three big credit reporting firms: Equifax Inc., Experian and TransUnion.

In remarks prepared for a speech Monday, Richard Cordray, the government agency's director, said that scorekeeping by credit bureaus plays such a large role in Americans' financial lives, it requires scrutiny.

(Excerpt) Read more at hosted.ap.org ...


TOPICS: News/Current Events
KEYWORDS: cfpb; cordray; credit; creditrating; equifax; experian; rating; richardcordray; transunion
It is a very short leap from oversight of consumer's ratings to oversight/direction of fed/state/muni credit rating.
1 posted on 07/16/2012 1:31:35 PM PDT by BAW
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To: BAW
It is a very short leap from oversight of consumer's ratings to oversight/direction of fed/state/muni credit rating.

and then a hop and a skip to police running your credit before issuing a ticket, to assign a "fair amount" fine.

2 posted on 07/16/2012 1:35:07 PM PDT by NativeSon ( Grease the floor with Crisco when I dance the Disco)
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To: BAW

Should be a fairly straightforward task for the programmers if the credit reporting agencies to bring things in line with new regulations.

Pseudo code:

IF RACE=Black THEN SCORE=SCORE+200 ELSE SCORE=SCORE-200;


3 posted on 07/16/2012 1:37:27 PM PDT by Cementjungle
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To: BAW

When will they be going after Moody’s et. al. for rating bonds backed by mortages of $700,000 lent to dishwashers making $7.00 per hour as “AAA”?


4 posted on 07/16/2012 1:37:27 PM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: BAW
Richard Cordray, the government agency's director

Not confirmed by the Senate. The illegal agency has an illegal director.

DOJ will be at the ready for lawsuits against businesses that supposedly prey on the Amish.

Ain't social justice grand?

5 posted on 07/16/2012 1:39:21 PM PDT by Jacquerie (I want my America back.)
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To: BAW

Centralized Command and Control Government. If the scores weren’t effective, creditors wouldn’t bother paying the fees for the information. The reason for Obama’s intervention is to strip the ability of creditors to collect and report against “less advantaged” folks. By hiding risk from financial institutions, they will be led back into the trap of flushing depositor money down the toilet under the auspices of CRA.


6 posted on 07/16/2012 1:39:21 PM PDT by johncocktoasten (Practicing asymetrical thread warfare against anti-Palin Trolls)
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To: BAW

What could possibly go wrong?


7 posted on 07/16/2012 1:41:31 PM PDT by dfwgator (FUJR (not you, Jim))
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To: BAW

It’s nice to know the feds haven’t run out of new things to #@$% up.


8 posted on 07/16/2012 1:43:01 PM PDT by E. Pluribus Unum (Government is the religion of the sociopath.)
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To: BAW

GET RID OF 0BUMMER!


9 posted on 07/16/2012 1:43:32 PM PDT by carriage_hill (All libs and most dems think that life is just a sponge bath, with a happy ending.)
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To: BAW

Oh this is gonna end well...


10 posted on 07/16/2012 1:43:44 PM PDT by GraceG
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To: johncocktoasten

My first thought as well.


11 posted on 07/16/2012 1:44:43 PM PDT by SunTzuWu
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To: BAW

Well, they finally found a suggestion that caused even me to stop for a second and think, “That might be a good idea.” Then, unlike the average liberal I continued to think for more than a second and realized that the potential for mischief is vast. My next thought was, as someone else here has already mentioned, that the first thing they will do with this power is to force rating agencies to add a little extra to the credit scores of minorities and other democrat constituencies “just to be fair.”

No thanks.


12 posted on 07/16/2012 1:52:13 PM PDT by noiseman (The only thing necessary for the triumph of evil is for good men to do nothing.)
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To: dfwgator

13 posted on 07/16/2012 1:52:48 PM PDT by tumblindice (Sic Semper Tyrannis)
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To: BAW

Honestly.. the credit companies did this to themselves.. (now.. hear me out..)

Ever have something show up on your report that was wrong? How easy was it to get it fixed?

I’ll tell you in my case..

8 years ago my ID was stolen.. There are STILL accounts on my reports from that ordeal. I talk with the bank the account was opened with who agrees it should not be on my report. I get a letter from said bank. I send a copy of said letter with a “dispute” to the reporting credit agency..

I have done this 10 times on one account. It’s STILL there.

I do think that this will of course allow government to ruin the system completely however.


14 posted on 07/16/2012 1:57:55 PM PDT by cableguymn (For the first time in my life. I fear my country's government.)
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To: cableguymn
Ever have something show up on your report that was wrong? How easy was it to get it fixed?

I've never had a problem getting mistakes changed.

15 posted on 07/16/2012 2:02:38 PM PDT by isthisnickcool (Sharia? No thanks!)
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To: BAW

A short leap to all of finance.

1st insurance
Next, finance
2013, if 0bama wins, oil and energy

And somewhere.....all communications

Next up, FEMA camps and wholesale slaughter.


16 posted on 07/16/2012 2:09:57 PM PDT by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spiritui Sancto.)
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To: noiseman

Yup.

I don’t like you, you _______________________. Your credit score is now 287.


17 posted on 07/16/2012 2:11:54 PM PDT by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spiritui Sancto.)
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To: BAW
FTA: Reports on 200,000,000 Americans and THOUSANDS of complaints. Say it's 50,000 (although that should be reported as TENS of thousands). The error percentage = 50,000 / 200,000,000 = .00025 One person out of FOUR THOUSAND. For this we need thousands of bureaucrats, billions for enforcement? Nope; it's just another government takeover.
18 posted on 07/16/2012 2:12:08 PM PDT by Darteaus94025
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To: cableguymn

I got a problem with a credit reporting agency resolved with a phone call this morning.

8 years is an outrageous amount of time for a credit reporting problem to remain unresolved.

Check this out, partic. sections 605 and 611. http://www.ftc.gov/os/statutes/031224fcra.pdf

Yes, you can be sure if the government gets involved you will be dealing with another layer of office workers attempting to justify their existence.

Keep in mind this Consumer Financial Protection Bureau is a new agency and is attempting to wrap its tentacles around as many immovable objects as possible in the event Obama is tossed out and the new guy says, “This is all unnecessary make-work federal BS.” Yeah, I can just see Romney doing that. Heh.
Like `Affordable Health Care,’ if these little monsters aren’t strangled in the crib they become immortal and grow up to be EPA.


19 posted on 07/16/2012 2:12:33 PM PDT by tumblindice (Sic Semper Tyrannis)
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To: NativeSon

Or consider your ‘fair amount’ due for your next medical procedure.
Sure, they will already know how much money you have in the bank, but now they’ll have a better picture of how much more they can squeeze out of you.


20 posted on 07/16/2012 2:15:12 PM PDT by paint_your_wagon
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To: cableguymn

You have a point that the credit bureaus routinely screw things up and getting them corrected is like pulling teeth. I’ve experienced some of that, and no arguments.

That being said, Obama’s intentions here are somewhat more sinister. I’ve been predicting for many months that he’d eventually get around to attacking the very notion of credit scoring as RAAAAAACIST. And that once he was desperate enough he’d rerun the William Jennings Bryan campaign and start wailing on bankers. So it’s begun.

But with this doofus agency and it’s illegal director he is able to launch a dagger directly at the soft underbelly of Capitalism. If the Government takes de-facto control over who gets credit and how much, it is pretty much Game Over for the market economy. No doubt his plan all along.


21 posted on 07/16/2012 2:17:11 PM PDT by Buckeye McFrog
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To: BAW

It is about time the credit reporting agencies had some oversight. Through totally incorrect information they placed on my credit report they nearly cost me a home. It took four Weeks of intensive effort on my part to fix THEIR mistake. I cant fathom a system that is set up with no consumer protection and can do so much harm.

Im all for this.


22 posted on 07/16/2012 2:17:11 PM PDT by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
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To: DuncanWaring

Amen to that!


23 posted on 07/16/2012 2:19:08 PM PDT by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
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To: BAW

Credit ratings will now be political.


24 posted on 07/16/2012 2:30:01 PM PDT by Paine in the Neck (Socialism consumes everything)
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To: BAW

Corruption just waiting to be used.

“Do as we say or your credit will be ruined forever!”.....................


25 posted on 07/16/2012 2:38:29 PM PDT by Red Badger (Think logically. Act normally.................)
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To: isthisnickcool
I've never had a problem getting mistakes changed.

I have had enormous problems getting mistakes changed. And the "customer service" people I have spoken to are arrogant liars.

A little government supervision is just what these guys need. If they had been reasonable and responsive to people instead of treating everyone like a deadbeat liar they might not have gotten to this point.

26 posted on 07/16/2012 2:39:11 PM PDT by CurlyDave
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To: BAW

And one toe over the line into police state.


27 posted on 07/16/2012 2:57:11 PM PDT by bgill
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To: BAW

As much as I would like to see an overhaul of the system, I get a sinking feeling that the government having a hand in this will be nothing short of disastrous.


28 posted on 07/16/2012 3:04:36 PM PDT by Txngal
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To: BAW

Swell. Just frickin’ swell.


29 posted on 07/16/2012 3:05:42 PM PDT by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
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To: cableguymn

A credit reporting agency only lists items on on a credit report that are received from creditors. If a creditor reports a negative item it can be removed by the reporting agency, but will reappear if the creditor again reports the negative trade at a later date.

There are specific laws regarding how credit bureaus investigate disputed trade lines, and the laws are followed very carefully.

Credit bureaus do not assign either positive or negative ratings.


30 posted on 07/16/2012 3:48:28 PM PDT by saltshaker
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To: saltshaker

Here is what happens every time..

Lender send me a letter, signed with letterhead saying the item should not be on my report.

I send this letter to the credit reporting company.

They send back a letter 45-60 days later rejecting my letter and saying the trade line remains.

One reporting company flat out rejects the dispute and says “we don’t care. we’re not checking in to this any longer”

It has NEVER been off my report for even 5 minutes. It has not been updated in 4 years by the “lender”... It just never gets removed.

Soon it should just fall off on it’s own. Normally it’s 7 years..


31 posted on 07/16/2012 4:17:32 PM PDT by cableguymn (For the first time in my life. I fear my country's government.)
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About the only thing I can think of that could screw up the Credit Bureaus performance more is increasing government involvement.


32 posted on 07/16/2012 7:18:28 PM PDT by D-fendr (Deus non alligatur sacramentis sed nos alligamur.)
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