One of the big responsibilities of the Consumer Financial Protection Bureau is to hear complaints from consumers. In the 21 months ending September 2021 they heard over 700,000 complaints against Equifax, Experian and TransUnion. This is 50% of all complaints received. Obviously consumers are not satisfied with the trio.
In 2021 those companies reported relief in response of less than 2% of the complaints. Quoting the new CFPB Director Rohit Chopra, “America’s credit reporting oligopoly has little incentive to treat consumers fairly when their credit reports have errors.”
The problems are numerous and severe. Especially in medical bills. If you want to read how severe, check the link at the bottom of this post.
This January 5, 2022 report lists many of the problems. However, I did not see anything as to what CFPB intends to do. I believe that step should be forthwith.
Excellent report Director Chopra. Now how about telling what you are going to do. And then do it.
We already know how ridiculous the FICO score is. It does not tell a lender what they should know about someone. Only a number that no one really knows how it is computed and how you can “for sure” improve it. The FICO score is a mystery in a puzzle wrapped up in conundrum.
Would I rather lend to someone with a high 700 Fico who has no liquid assets and no prospects (and as my mother would say, “No pot or no window”) or someone who has a 650 FICO and $3,500,000.00 in legit liquid assets? I know to whom I would rather lend.
I ran into this for years when I was a general partner in some real estate syndications. I thought that I was doing well and I had some very good tax deductions so I did not show very much Taxable Income. (Does anyone remember prepaying mortgage interest?”).
I am a believer in collateral lending. Let’s look at what someone has. But more Savings and Loans are going to go broke following our hallowed FICO score. Throw out the oligopoly. See the full article HERE.