Well, unless you live under a rock you’ve heard about 60 Minutes credit reporting agency expose from February 10th. You would think with the amount of money generated by the industry, over $4 billion dollars a year, better protections would be in place meet the industries obligations under the Fair Credit Reporting Act. Unfortunately, the current dispute processes fail to comply. As a result, more than 40 million American have errors on their reports costing them a lot of money. The truly sad aspect of this report is it almost impossible to have erroneous information removed from your report. 60 Minutes spoke to former employees, lawyers, and consumers and each had an equally startling story to tell. Employees spoke of their inability to correct errors, even though it was their duty to do so. Lawyers discussed why these agencies would rather pay million dollar settlements than change the inner working of their company. And consumers detailed the challenges they faced as the credit reporting agencies all but ignored their pleas to remove inaccurate information. The report is eye-opening, and I encourage you to watch it here.
Until next time I’m Thom Fox for Cambridge Credit Counseling.