Credit reports are very important to an individual. The information found in ones credit report may help him build up a better financial support or may crumble down his or her finances. A credit report may also be the source of one’s promotion, renting apartments, increase ones chance in finding a better job, and in getting one an insurance policy rate that is right for him or her. Because of the very valuable importance of credit reports, members of the government or the lawmakers have included a measure located in the new financial reform that would lessen the chances that credit reporting agencies would make a mistake in filing up the credit reports of various consumers. This financial reform would definitely help a lot of consumers.
According to a blog posted by Michael Barr, the Treasury Assistant Secretary who is in charge of financial institutions, they have received about 150,000 calls complaining that they have a lot of error in their credit reports that have been the cause of denied credits and jobs. He also wrote that, aside from the 150,000 complaints, there are almost 6 million American consumers who claim that they have severe errors in their credit reports which were heavy enough to have their permission for credits be denied.
The said financial reform, known as the Dodd-Frank Bill, aims to lessen the chances of errors in consumers’ credit reports by acting out a measure which would give the Consumer Financial Protection Bureau, otherwise known as the CFPB, the power to investigate known credit bureaus regularly. These examinations would check if the credit reporting agency is complying with the laws that they should be accommodating such as the Fair Credit Reporting Act.
Aside from ensuring an accurate credit report for the consumers, the bill would also ensure that consumers would have various credit scores that would not put them at a disadvantageous situation even if they have been denied loans or jobs. The consumers who would be denied loans and be rejected possible jobs would have a chance to freely see their credit scores and have them study it. The CFPB would be helping them see through it and would be available for them if they needed help in improving their lifestyles.
The Federal Trade Commission, commonly known as the FTC, along with various credit reporting agencies encourages individuals, especially the ones who are unsure of their current credit status, to obtain at least one copy of their credit reports every year so that they would be able to plan out or comply with whatever financial crisis they might face due to the things that they have not seen in their reports. The agencies also would like to have consumers check themselves especially on their expenses. They should be able to control their expenses and not overuse or abuse their credit cards and they should pay their debts on time.
