Credit Reporting System
Our credit reporting system can be enormously unjust! It goes against the fiber of our justice system because when you’re accused of committing a credit offense you’re guilty until proven innocent and often proving innocence is not always an easy task.
To protect yourself from the harm it can cause, you must first understand how it operates and you must have a working knowledge of the laws that have been enacted to control it.
79% of Reports Have Errors
A study released by the U.S. Public Interest Research Group in June 2004 found that 79% of consumer credit reports contained some kind of error or mistake. And 45% of credit reports contain severely incorrect data that would cause a person to be denied employment, credit or a bank account.
Information in your credit report is frequently wrong. Sometimes the errors are small and irrelevent, such as when your credit file lists a past employer as a current employer. Other times the problems are significant, such as when your file contains accounts that don't belong to you.
The credit bureaus handle billions of pieces of data every day, so to some extent, errors, outdated, and missing information are inevitable -- but the credit-reporting system often makes it difficult to get rid of errors after you spot them.
Derogatory notations can be placed on your credit file without your knowledge. Even worse, they can be reported by credit bureaus to credit grantors, potential employers and others who make decisions that affect your life. Something as insignificant as one late payment being reported on your credit report can unleash enough credit score damage to disqualify you for a mortgage or a job.
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