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Troubling Times May be Ahead For Consumer Credit Bureaus in the USA

Beginning in January 2011, requirements are in place for lenders to provide Risk Based Pricing notices to many consumers applying for new credit, as well as consumers that have been negatively impacted by changes in terms on their existing loans (such as increases in APR).  

Due to the complexity of both the Credit Score Proxy and Tiered Pricing methods for determining which consumers must receive the new notices, many lenders have opted to send the Risk Based Pricing notices to all consumers that apply for loans rather than trying to calculate which individual consumers have technically received “materially less favorable” terms as noted in Section 311 of FACTA.

This may prompt many consumers to scrutinize their credit reports in respect to the accuracy of the data contained in their report. As if the barrage of “FreeCreditScore.com” and other score monitoring commercials wasn‟t enough to bump up disputes volumes, lenders can expect the new notices to direct more and more consumers to obtaining and carefully examining their credit reports. Additionally, with almost 10% of the U.S. in job search mode, and thanks to the now widespread practice of employment screening credit bureau pulls, it is expected that dispute numbers will increase even more.

To read the full story click on the attachment:  Troubling Times for Credit Bureaus in the USA

This article was provided courtesy of Jennifer Maisano is the President and CEO of Credit Bureau Strategy Consulting, LLC. For more information contact Jen at 410-208-6797, [email protected] or visit www.CBStrategyConsult.com

The content of this article does not necessarily reflect the opinion of BIIA and its members. BIIA is not responsible for the use which might be made of the information contained in this post.  Nothing in this post implies or expresses a warranty of any kind.

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