Credit Repair Services and the CFPB
While preparing for a recent meeting with a mortgage lender that had been fed some negative and mostlyCFPB and Credit Repair Services incorrect information about credit repair services and the credit repair process I ran into several interesting pieces of information I want to pass along.
First I wanted to share an interesting article, see below:
“The Consumer Financial Protection Bureau (CFPB) Consumer Advisory Board held a hearing on February 27 on the credit reporting industry. Panel participants included representative consumer advocates, Discover Card Services, and the credit reporting industry trade group CDIA president Stuart Pratt.
Pratt stated: “Fraudulent credit repair” is a significant problem for credit bureaus and challenged “jamming” the system, charged that firms move state-to-state trying to avoid law enforcement. Recently, the CDIA announced that credit repair is a top priority for their legislative agenda this year.
The same day as Pratt alleged the problem with credit repair services, the Federal Trade Commission (FTC) issued a report indicating consumer complaints about credit repair services have plummeted to lowest level in recent years to 1,848 or 0.09% of the total 2 million complaints in 2013. Conversely there were 30,000 complaints related to credit reporting and 20,000 complaints in mortgage related issues.”
I love how Pratt tried to slam the credit repair industry only to have the FTC report prove the exact opposite. The credit repair industry has come a long way in the last several years and we have some hard data to support it. Thanks FTC and CFPB!!
Stop Errors in Credit Use and Reporting Act
Another piece of news I ran across was a recent bill introduced to congress by Senator Brown of Ohio. Read a snippet below or read the whole article here.
WASHINGTON, D.C. –U.S. Sens. Sherrod Brown (D-OH) and Brian Schatz (D-HI) held a news conference call on Wednesday to unveil major legislation that would protect consumers from inaccurate credit reports and credit scores. The Senators’ legislation will be introduced as Consumers Union releases a new report describing credit report errors that affect 40 million Americans. Credit report errors can increase consumers’ costs, lower their credit scores, and cause other financial hardship.
US PIRG and Credit Reports
Numerous studies by the U.S. PIRG Education Fund and a 2013 study by the Federal Trade Commission have found that millions of Americans have serious errors on their credit reports. These errors can severely inhibit a consumer’s ability to get an affordable loan, rent an apartment, or even find a job.
One last fact: 2 of the top 3 industries that the CFPB received the most complaints about last year were debt collection companies and the credit bureaus. Credit repair services done right can help hold the above mentioned industries accountable.