Credit bureaus to get federal oversight for first time

[formerlurker]

Star Member MindMover (2,007 posts)

Credit bureaus to get federal oversight for first time

Last edited Mon Jul 16, 2012, 12:59 AM USA/ET - Edit history (1)
Source: MSNBC

America’s credit bureaus are about to get some new scrutiny. The Consumer Financial Protection Bureau adopted a rule on Monday that will allow it to keep an eye on the nation’s credit reporting industry.

Starting September 30th, the agency will monitor the country’s big credit bureaus and conduct on-site examinations to see if these companies are complying with the law. It’s similar to what the CFPB already does with the nation’s big banks.

This is the first time the federal government will be take an active role in trying to clean up an industry that has a reputation for sloppiness and arrogance, consumer advocates say. Until now, no single federal government agency could access all the information necessary to generate a complete picture of what’s happening inside these companies. The CFPB will enforce the laws already on the books and write new rules as needed.

“Supervising this market will help ensure that it works properly for consumers, lenders, and the wider economy,” CFPB director Richard Cordray says in a prepared statement. “There is much at stake in making sure it is both fair and effective.”



Read more: http://bottomline.msnbc.msn.com/_news/2012/07/16/12758288-credit-bureaus-to-get-federal-oversight-for-first-time?lite?ocid=twitter

http://www.democraticunderground.com/1014167426

Typical whining about their credit from the misfits, but this is actually a welcome change.   Credit reports are notorious for mistakes, sometimes huge mistakes,  that are not easily fixable.    Repairing identity fraud being the most difficult. 

[Kyle Ricky]

I agree with this. With all the mistakes they make and how douchish they are trying to get them fixed, they need monitored.

[miskie]

http://www.democraticunderground.com/1014167426

Typical whining about their credit from the misfits, but this is actually a welcome change.   Credit reports are notorious for mistakes, sometimes huge mistakes,  that are not easily fixable.    Repairing identity fraud being the most difficult. 

I'll agree here -

WHen I was young, I had the most difficult time getting any credit at all. Eventually I got a report and it turned out I was getting blackballed for an unpaid credit card that I never had.

It turns out when you look at the date the card was issued, I was only about 7 years old. Obviously not mine. I took about a year to get that expunged.

[jukin]

Let's see how people with Republican voter registrations versus democrat ones credit scores vary.

I don't like this from the very basis of limited government.  

[Bad Dog]

Let's see how people with Republican voter registrations versus democrat ones credit scores vary.

I don't like this from the very basis of limited government.  

I'm with you. The problem is the "government" protected the bureaus from tort action. Now the "government" is going to fix the problem they created.

[DumbAss Tanker]

Kind of a wash to me.  The credit bureaus are high-handed assholes and deserve a bitchslap or ten, but every additional layer of oversight and regulation just adds that much more friction to the process of verifying credit-worthiness in getting a loan, so the obvious immediate effect is that it will make loans harder or at least slower to get.

[Bad Dog]

Kind of a wash to me.  The credit bureaus are high-handed assholes and deserve a bitchslap or ten, but every additional layer of oversight and regulation just adds that much more friction to the process of verifying credit-worthiness in getting a loan, so the obvious immediate effect is that it will make loans harder or at least slower to get.

The problem I see is that government involvement will resemble the fair housing act enforcement.  You know, winners & losers.

[BlueStateSaint]

The problem I see is that government involvement will resemble the fair housing act enforcement.  You know, winners & losers.

Yep.  Which credit bureaus donated campaign cash to the Obamessiah?  They will be the winners.