Credit Bureaus are Often Mistaken

Credit Bureaus are Often Mistaken

Financial Responsibility in the United States (Photo credit: Bart Claeys)

Credit Bureaus are Often Mistaken

The Credit Bureaus are often mistaken according to a study by the Consumer Financial Protection BureauResearchers at the CFPB found that discrepancies happen to at least 1 in 5 people according to a study based on random sampling of 200,000 credit files kept by the 3 major credit reporting agencies.  These agencies are Equifax, Experian and Trans Union.  I’m very happy to see credible figures on these mistakes at last.  Estimates on just how much bad information was in these reports have varied widely with no real hard statistics until now.   Never trust statistics provided by someone who has their own agenda going in.  Studies can be easily manipulated.

Sometimes Scores are Very Different

The CFPB is very concerned that the credit bureaus sometimes provide Americans with scores that are very different than the ones that lenders use.  Compounding the problem of credit bureaus are often mistaken is the fact that consumers are unlikely to know that this is the case.

Bill Sermons, director of research at the Center for Responsible Lending said:  ” The report illustrates how opaque the process is in determining credit scores.  The deck is stacked against consumers because they don’t know what information is being used to determine how much they pay for credit”


Consumers who are willing to pay can see their FICO scores from Equifax and Trans Union, but not from Experian.  The best source for your real FICO score is the FICO website itself.  This will cost you a few dollars. Don’t be fooled by alternative educational scores such as Vantage and the like that the credit bureaus offer.  These scores are used by less than 10% of lenders.  Your  FICO score is the one that matters in the vast majority of cases.

The CFPB consolidates under one roof the oversight of consumer issues that was once spread across 7 federal agencies. It has finally begun real and effective supervision of about 30 credit reporting firms that make up the bulk of the  $4 Billion dollar a year industry. It demonstrated that it is not afraid to flex its muscles by fining Capital One $150 Million Dollars for selling unneeded add on products to 2 million customers.  These add on products were chiefly unneeded and overpriced unemployment or disability insurance and ID theft protection. What the credit reporting agencies do affects our lives in so many important ways that this strong oversight is especially welcome.

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After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

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