Cloud Technologies Systems, Inc. Sites President Obama’s Unprecedented Move to Regulate the Three Major Credit Reporting Firms as a Negative for People that Need Credit Cards for Bad Credit
Mid July 2012 the Consumer Financial Protection Bureau stated that it will start supervising the major credit bureaus.
Columbus, Oh- Mid July 2012 the Consumer Financial Protection Bureau stated that it will start supervising the major credit bureaus. According to theblaze.com, Richard Cordray the CFPB Director said that the scorekeeping by credit bureaus plays such a large role in Americans’ financial lives, it requires scrutiny.
As of September 30th 2012, the CFPB started its supervision of the major credit reporting agencies. According to sfgate.com a consumer that believes that there is an error contained within their personal credit report should follow the normal procedures of contacting that credit reporting agency and dispute that item. At the end of that process if the consumer still believes that the error was not fixed then and only then should they contact the CFPB to submit a complaint. You can contact the CFPB to file a complaint online by visiting consumerfinance.gov/complaint. Once you file a complaint the CFPB contacts the Credit reporting agency, the process can take up to 60 days.
On the surface this may seem like a great avenue for consumers that believe they have errors on their credit report to have them removed. And it may also intimidate the credit reporting agencies to remove items for the fear of the federal Government that could impose more regulation and oversight that would put a drag on profitability.
The consumer has the potential to be effected in a negative way due to this added oversight and regulation, especially a consumer that has bad credit and is looking to rebuild it. The fallout will be from the corporations that offer credit; they may view the credit reports of consumers as less accurate than they were before the regulation took place. They may fear that negative items are being removed from the credit reports of consumers by the credit reporting agencies due to pressure from the CFPB. The result would be corporations that offer credit, credit cards and other lines of credit to consumers to tighten their credit standards. The end result would be consumers at the lower end of the credit scale would be denied credit lines as basic as credit cards.
A simple youtube search can reveal how important it is for corporations to offer these credit cards for bad credit to consumers to help them get back on their feet and rebuild their credit. You can view one such story at Credit Cards For Bad Credit Video.
For now it is impossible to judge the results of this new regulation but unless repealed, this time next year it may be more obvious just by looking at the credit requirements for basic credit lines for people that have bad credit.