3 Reporting AgenciesSection 3 Companies subject to reporting requirements
CFPB's current report on credit reports
We are at least a year away from observing the FTC's decades-long scrutiny of reference agencies, but a new survey by a regulator gives an interesting glimpse of what we might get into. Last year, the Financial Protection Bureau analysed the figures of the three biggest international financial institutions - Equifax, Experian and TransUnion.
We' ve been thinking about the 38-page narrative. 1 ) Crédit agencies allow an automatic system to handle 85 per cent of all customer disputes: The CFPB reports that of the 8 million litigations submitted by customers in 2011, the rating agencies only handled about 15 per cent internally. You sent the lion's part to an automatic system known as eOSCAR, which you in turn forwarded to the believer in charge of the disputed information.
To a large extent, iOSCAR is unable to process additional material that consumer can submit to defend themselves - such as a letter or other document about their loan histories. Instead, e-OSCAR marks litigation with one of two encodings, according to contents, and only 26 per cent are sent to believers with additional information of all kinds.
A representative of the Consumer Data Industry Association says that the most important aspect for the use of the system is its timeliness: Therefore, the Lender knows what the debate is about (usually the amount owes on a major bank account or loan) and will respond appropriately," Norm Magnuson, Vice President of Public Affairs, said in an email.
2 ) More than half of the information in the Bureaux of Commerce databanks is provided by the consumer credit cards industry: Given that information such as your exposure to your limit, your ability to pay, and your criminal activities are basically the largest determinants of your overall creditworthiness, it is important to know which lenders provide the most information.
The CFPB reports that 40 per cent of this information is provided by corporate and 18 per cent by consumer debit systems. On the other hand, only 7 per cent come from mortgages or service providers and 4 per cent from car loans. 3 ) Less than one in five persons receives a copy of his credential information each year:
The safest way to trigger an alert for imprecise information is to download a current loan statement every year. Out of the 44 million users who were able to receive a consumer survey, only one in five is actually annoying.