Credit Industry

Update: Credit Industry Reform

Update: Credit Industry Reform

An update on the National Consumer Assistance Plan

On March 8, 2015, Equifax, Experian and TransUnion (CRAs) entered into a settlement agreement with the NY Attorney General along with 31 additional AGs from other states. Upon entering the agreement, the CRAs announced that they would address a number of credit reporting industry problems, including their dispute process and how they handle unpaid medical debt. This agreement is referred to as the National Consumer Assistance Plan.

The credit reporting industry overhaul is taking place nationally over the course of three plus years with 2018 as the deadline to have all changes made. The overhaul will be implemented in three phases (detailed below) to allow the CRAs to update their IT systems and procedures with data furnishers.

To date, changes to websites and other technical tasks have been acomplished. A change to be implemented this September will address the dispute process. The CRAs will be using trained and empowered employees to review the documentation accompanying disputes. And, if a furnisher says its information is correct, the credit reporting agencies must still look into it and resolve the dispute.

In addition, the credit reporting overhaul will require CRAs to wait 180 days before adding any medical debt

Last Week Tonight with John Oliver: Credit Reports

Last Week Tonight with John Oliver: Credit Reports

John Oliver on the Credit Reporting Industry

Earlier this month, HBO's John Oliver of Last Week Tonight did a segment on credit reports. The segment highlights studies which report major problems in the credit reporting industry. The studies reveal that credit reports contain a shocking number of errors. One study found that 25% of consumers had errors in their credit reports. That means that 1 and 4 credit reports have an error. The study further states that 1 and 20 credit reports contain sufficient errors that would make a consumer pay more for a car loan or a mortgage. Credit report errors vary by type and may be serious enough to deny an application for credit, housing or employment.