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60 Minutes: 40 Million Mistakes: Is Your Credit Report Accurate?

Sunday, February 10, 2013 - 6:44 PM
Just saw this on 60 Minutes. It shows how common credit report errors are and how difficult it can be to correct errors. Here's an excerpt of one woman's experience:
Or Judy Thomas, a trauma nurse with a horror story worthy of Hitchcock or Kafka.

Judy Thomas: There's nobody to go to. There's nobody. You just keep making phone calls and you just keep writing disputes and you keep sending them your Social Security number. And they don't care.

Read more (and watch video)
Ken TuminKen Tumin5,473 posts since
Nov 29, 2009
Rep Points: 125,800
1. Sunday, February 10, 2013 - 7:22 PM
These credit reporting agencies have been running scam operations for years. Trying to fix an error on their part is next to impossible. The FTC needs to shut them down immediately.
ShorebreakShorebreak2,700 posts since
Apr 6, 2010
Rep Points: 14,636
2. Monday, February 11, 2013 - 9:35 AM
I suspect it's all about money (as noted in the piece). Civil judgments to these folks are just a cost of doing business, and are cheaper to pay than the alternative (fixing the system). Banks, credit unions, retailers, landlords, employers and many more keep relying on these "great American novels" as part of the application process, and generate fees thereby to the credit agencies. Credit agencies have done the math.

When (if?) potential creditors/lenders stop ordering these reports, or reduce their orders, and tell the agencies "why", then (and only then) will we see meaningful reform. I doubt more regulation will help, any more than Dodd/Frank reined in S+P or Moody's. The agencies would respond to any regulation by simply providing less detail to creditors, and thus less ammo for regulators or borrowers (as in "here's the score; trust us").
BozoBozo137 posts since
Feb 14, 2011
Rep Points: 944
3. Monday, February 11, 2013 - 10:21 PM
Here's a article containing a link to the entire FTC report
that came out today --- for those interested in the blow by
blow account.
cumuluscumulus365 posts since
Jan 16, 2010
Rep Points: 1,717