Skip to comments.Govt to supervise credit reporting for first time
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.
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and then a hop and a skip to police running your credit before issuing a ticket, to assign a "fair amount" fine.
Should be a fairly straightforward task for the programmers if the credit reporting agencies to bring things in line with new regulations.
IF RACE=Black THEN SCORE=SCORE+200 ELSE SCORE=SCORE-200;
When will they be going after Moody’s et. al. for rating bonds backed by mortages of $700,000 lent to dishwashers making $7.00 per hour as “AAA”?
Not confirmed by the Senate. The illegal agency has an illegal director.
DOJ will be at the ready for lawsuits against businesses that supposedly prey on the Amish.
Ain't social justice grand?
Centralized Command and Control Government. If the scores weren’t effective, creditors wouldn’t bother paying the fees for the information. The reason for Obama’s intervention is to strip the ability of creditors to collect and report against “less advantaged” folks. By hiding risk from financial institutions, they will be led back into the trap of flushing depositor money down the toilet under the auspices of CRA.
What could possibly go wrong?
It’s nice to know the feds haven’t run out of new things to #@$% up.
Oh this is gonna end well...
My first thought as well.
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.”
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.
I've never had a problem getting mistakes changed.
A short leap to all of finance.
2013, if 0bama wins, oil and energy
And somewhere.....all communications
Next up, FEMA camps and wholesale slaughter.
I don’t like you, you _______________________. Your credit score is now 287.
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.
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.
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.
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.
Amen to that!
Credit ratings will now be political.
Corruption just waiting to be used.
“Do as we say or your credit will be ruined forever!”.....................
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.
And one toe over the line into police state.
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.
Swell. Just frickin’ swell.
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.
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..
About the only thing I can think of that could screw up the Credit Bureaus performance more is increasing government involvement.