Negative credit reporting is the system Australia operated under until March 2014, which was based around only making a note of negative credit events. Lenders based their assessments of a potential borrower applicant solely on whether the applicant had any negative reports on their credit history, such as missed repayments or defaults.Banks, credit unions and other lenders could access information concerning a potential customer’s credit applications – but not whether the application was approved or not. The credit report also included details of any overdue debts, defaults, bankruptcy, or court judgements.

Be the first person to like this

Waters said the changes in her bill might not go far enough and “we need to ask whether the system is so beyond repair that we need to completely rebuild the entire consumer credit reporting sector to truly put consumers first.”

Be the first person to like this

Jaret Seiberg, an analyst with brokerage and investment bank Cowen & Co., said the hearing reinforced the firm’s view that the new Congress was likely to act.“While there may not be agreement on exactly what should change, there was broad support to giving consumers more power to fix mistakes and to control the data,” Seiberg said in a research note

 

Be the first person to like this
#3

McHenry, who proposed legislation in 2017 that would require Equifax, Experian and TransUnion to phase out the use of Social Security numbers to verify Americans’ identities, said he wanted more competition instead of more regulation. But he agreed that some changes were needed.

Be the first person to like this

 Gregory Meeks (D-N.Y.) emphasized that the data the credit reporting companies use belong to consumers and there is nobody advocating on behalf of them, particularly for a poor person, when it comes to disputes about accuracy. And the incorrect information could cost a person a job.

Be the first person to like this

Consumer advocates who testified at the hearing after the chief executives said that they supported Waters’ legislation and that it was a long time coming.“By my estimate, this is the sixth time I’ve been before Congress talking about abuses by the credit bureaus,” said Chi Chi Wu, staff attorney at the National Consumer Law Center, who told committee members that the system for disputing information in a credit report is a “Kafkaesque nightmare” that needs reform.

 

Be the first person to like this