There’s talk going around in the USA. It is regarding the credit bureaus we’ve come to know; Experian, Transunion, and Equifax.
President Joe Biden is discussing possibly abolishing the 3 credit bureaus, to instead form one credit reporting agency under the CFPB (Consumer Finance Protection Bureau).
The credit bureaus are the 3 agencies that dissect your credit portfolio; your accounts, credit history, payment status etc. But, they don’t calculate or establish your credit score.
Why abolish?
In more general terms, a Democratic think tank called Demos, believe that this system with the credit rules being set by the 3 credit bureaus, we as consumers, are the culprits. We don’t understand the exact rules and regulations of the credit rating. That makes it hard to fight against an error with the credit reporting and it also limits us in so many ways. Credit is used a lot, to purchase a car, a home, a loan, and some are even hiring employees based on their creditworthiness. This system is unfair and not always compatible with a person’s true spending and funds.
Biden wants to possibly hand over the credit scoring to the CFPB. The CFPB is government-run, being that the president of the CFPB is appointed by the President of the United States.
It seems that having the credit scoring handled by one government-run place, will provide fair and equal reports.
There are definitely discrepancies when you have 3 different agencies dissecting your credit score. Should there be one credit bureau, let’s say, consumers would also be clearer about their own credit and score. This new idea may give consumers more access to their credit reports.
I believe that such a move will be great for us consumers as the credit bureaus have a lot of false information collected on many consumers. They don’t properly follow dispute guidelines, and they make it a headache for consumers to fix errors on their credit reports. But will a government-run reporting agency be any better? I don’t know…
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Anything ran by governments is a disaster it will mess up the whole credit system even though it’s not perfect now!
I hope this is far from actually becoming a reality.. Goverment bureaucracy would make it a lot more difficult, while these Credit bureau’s you can sue for inaccurate reporting (and have them correct it) you can’t sue Uncle Sam