Voice of the Consumer
The Fair Credit Reporting Act is the federal legislation governing credit reporting. The Federal Trade Commission and other federal agencies request and review studies of the credit reporting industry. The focus of these studies is to improve reporting accuracy and consumer awareness.
Most of the studies are looking for ways to improve communication between consumers and creditors by informing individuals of things like a creditor issuing an “adverse action” after reviewing their credit report. This would mean implementing rules requiring creditors that issue the “adverse action” provide a copy of the same report to the consumer.
While this may improve a consumer’s awareness of a problem, it doesn’t necessarily educate the consumer about possible solutions. In order for legislation to be effective it has to be two-fold. It should provide consumer awareness and education as well as consumer protection. It should also provide accountability and restitution to consumers when inaccuracies, data loss, etc. of creditors and/or the bureaus negatively impact the consumer’s credit.
The Federal Trade Commission is currently seeking consumer comments as part of their studies of the credit reporting industry. Whether you have experienced problems with your credit report or not, you should learn about the studies currently underway and provide feedback to the FTC.
Giving voice to your experiences, observations and needs as a consumer is vital. It is the first step toward implementing change. For more information, visit the FTC website at www.ftc.gov/os/statutes/fcrajump.htm.