The system of credit scoring and reporting is without a doubt in dire need for reform. But how are we possibly going to get it?
The Dodd-Frank Wall Street Reform and Consumer Protection Act, passed by Congress in 2010, ensures that you are now eligible for a free copy of your credit score if you are denied a loan based on that score, and also should you get a high interest rate on a new personal loan. This is a positive improvement. But what is the motto of nearly every Republican candidate for president? Repeal Dodd-Frank! Meanwhile the Obama administration is less than willing to push on some consumer legal rights.
Warren designed CFPB as a watchdog that could oversee credit scoring and reporting practices and function a recourse to consumers. The bureau released a beneficial preliminary study in July 2011, which considered how scores purchased by consumers and those shown to lenders can vary, leaving consumers in the dark about their actual creditworthiness. We can be thankful that the bureau is doing these ongoing investigations. But without Warren at the helm, and given CFPB's positioning within the bank-centric Federal Reserve, its impact will be restricted. The industry, along the politicians it lavishes money upon, will try to stymie even its most moderate efforts.
The fact is that fundamental reforms are essential if we want to truly take back our lives from these credit scoring juggernauts. Attorney Walker Todd, who spent 2 decades in the legal sectors of the Federal Reserve Banks of New York and Cleveland, assures that to be able to even begin to deal with the systemic and structural troubles of the industry, a full-dress congressional hearing is order, ultimately in three parts, as follows:
1) Function of regulators in the industry. Regulators will come in and testify under oath precisely how they conceive their own role. (You get a highest possible prospect of humiliation here.)
2) History of the profession. Focus on the way the goal and style of the profession have transformed from the past to the present. This could also address structural adjustments to the banking industry which have resulted in credit reporting chaos.
3) Testimony on misuses. Consumers would get to tell their experiences about the misuses of credit scoring and reporting.
The overall purpose of the hearing would be to determine if current agreements and systems have improved the availability and condition of credit, downgraded it, or left it about the same.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, passed by Congress in 2010, ensures that you are now eligible for a free copy of your credit score if you are denied a loan based on that score, and also should you get a high interest rate on a new personal loan. This is a positive improvement. But what is the motto of nearly every Republican candidate for president? Repeal Dodd-Frank! Meanwhile the Obama administration is less than willing to push on some consumer legal rights.
Warren designed CFPB as a watchdog that could oversee credit scoring and reporting practices and function a recourse to consumers. The bureau released a beneficial preliminary study in July 2011, which considered how scores purchased by consumers and those shown to lenders can vary, leaving consumers in the dark about their actual creditworthiness. We can be thankful that the bureau is doing these ongoing investigations. But without Warren at the helm, and given CFPB's positioning within the bank-centric Federal Reserve, its impact will be restricted. The industry, along the politicians it lavishes money upon, will try to stymie even its most moderate efforts.
The fact is that fundamental reforms are essential if we want to truly take back our lives from these credit scoring juggernauts. Attorney Walker Todd, who spent 2 decades in the legal sectors of the Federal Reserve Banks of New York and Cleveland, assures that to be able to even begin to deal with the systemic and structural troubles of the industry, a full-dress congressional hearing is order, ultimately in three parts, as follows:
1) Function of regulators in the industry. Regulators will come in and testify under oath precisely how they conceive their own role. (You get a highest possible prospect of humiliation here.)
2) History of the profession. Focus on the way the goal and style of the profession have transformed from the past to the present. This could also address structural adjustments to the banking industry which have resulted in credit reporting chaos.
3) Testimony on misuses. Consumers would get to tell their experiences about the misuses of credit scoring and reporting.
The overall purpose of the hearing would be to determine if current agreements and systems have improved the availability and condition of credit, downgraded it, or left it about the same.
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