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Around 10 million consumers have errors on their credit reports, most of which are not made by the consumers themselves. The errors could make the consumers unable to apply for loans or charged with higher interest rates.

The Federal Trade Commission made a study by looking into the credit reports for 1,001 consumers from three major credit bureaus, which are TransUnion, Experian, and Equifax. The agency found out that around 25 percent of consumers had at least one error in at least one of the three major credit reports. Errors include the number of mortgage or credit card payments a consumer had missed or the number of loans that were sent to collection agencies.

The findings of the Federal Trade Commission highlight the sinister nature of the credit reporting industry. Credit bureaus has the power to make or break a consumer?s creditworthiness without being required to get the person?s permission to collect and sell files regarding one?s financial affairs.

Thousands of corporate databases are available for a fee in the digital age and it is easy for credit companies to collect information. They don?t need to get the permission of the consumers. 40 million Americans have errors in their credit reports and most of them don?t know about it. 10 million got mistakes that are too grave to cause people to be denied or charged more for insurance or credit or even the ability to get a job.

Experian, TransUnion and Equifax spent more than $2 million on lobbying in 2012 and this could mean that a crackdown on the industry will be far from the agenda of lawmakers in Capitol Hill. The political expenditures by the credit bureaus are compiled by the Center for Responsive Politics.

The credit reporting industry began in 1898 when Cator Woolford, a Tennessee grocer, made a list of customers for local grocers? association that included indications of their creditworthiness. Other merchants wanted to buy the list and soon after that, Woolford started her credit reporting business. By 1901, Woolford?s Retail Credit Co. was supplying credit data to the insurance industry. In 1979, it changed its name to Equifax.

Source: http://www.paydayloansmag.com/consumers-want-better-methods-of-fixing-errors-in-credit-reports/

travis pastrana quinton coples a.j. jenkins riley reiff david decastro aj jenkins shea mcclellin