Accounts Receivable Management Featured Article

FTC Study Points Out Errors in US Credit Reporting Industry

February 12, 2013

The Federal Trade Commission (FTC (News - Alert)), which works to prevent business practices that are anticompetitive, deceptive or unfair to consumers, recently conducted a study about the U.S. credit reporting industry, and reported a startling truth that 5 percent of consumers had errors on one of their three major credit reports which could lead to less favorable terms for loans.

Errors in credit reports also meant consumers could end up paying more for products such as auto loans and insurance.

Howard Shelanski, director of the FTC’s Bureau of Economics commented, “These are eye-opening numbers for American consumers. The results of this first-of-its-kind study make it clear that consumers should check their credit reports regularly. If they don’t, they are potentially putting their pocketbooks at risk.”

The FTC is reportedly the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy. The organization reportedly pursues vigorous and effective law enforcement, advancing consumer interests by sharing its expertise with other legislatures and agencies.

This newly conducted study is the first to analyze all primary groups that participate in the credit reporting and scoring process: consumers; lenders/data furnishers (which include creditors, lenders, debt collection agencies, and the court system); the Fair Isaac Corporation, which develops FICO credit scores; and national credit reporting agencies (CRA).

The study also found that out of every five consumers’ disputes to credit reporting agency (CRA), four were subjected to modifications in the credit reports, and slightly more than 10 percent of consumers realized a change in credit score after receiving CRA modifications.

Charles Harwood, acting director of the FTC’s Bureau of Consumer Protection, added, “Your credit report has information about your finances and your bill-paying history, so it’s important to make sure it’s accurate. The good news for consumers is that credit reports are free through annualcreditreport.com, and if you find an error, you can work with the credit reporting company to fix it.”




Edited by Braden Becker

Article comments powered by Disqus

Related Accounts Receivable Management Articles

e2b teknologies Announces New Anytime Collect Customer

e2b teknologies adds fire suppression technology customer for its Accounts Receivable Management (ARM) solution. [ Read More ]
01/21/2015

Anytime Collect Automates the QuickBooks Accounts of a National Medical Collections Company

A performance analysis conducted by the Commonwealth Fund in 2014 revealed even though the U.S. had the most expensive health care system, it ranked last in comparison with 10 other nations in the delivery of healthcare. According to the fund, the U.S. needs to continue adopting health information technologies to introduce new levels of efficiencies across the board. [ Read More ]
01/14/2015

National Recovery Solutions Deploys Virtual Negotiation Technology

As of 2014, the total amount of debt consumers owe in the U.S. totaled $11.74 trillion, which was a 3.3 percent increase from the previous year. The credit card, mortgage and student loans consumers have to contend with cause a tremendous amount of pressure in their personal and financial lives. [ Read More ]
01/12/2015

NCEMSC Announces New Partnership with AMBARA

One of the interesting things about the accounts receivable management (ARM) business is just how vertically oriented it is. This is not surprising given the highly unique needs of specific industries when it comes to ARM. Hence, the desire of organizations looking to automate ARM capabilities to deal with experts in the needs of their vertical is high and reflected in industry fragmentation as a result of the need for customized solutions. [ Read More ]
01/07/2015
FREE Accounts Receivable Management enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!