Video 14 – Credit Reporting Conspiracy Theory

Transcription of Credit Reporting Conspiracy Theory – Video14

Now something interesting happened in the fair credit reporting act, a conspiracy theory. Anybody in here like conspiracy theories? Yeah? Ok. A few years back they made a big fear about there are credit reports. Why can’t we see them? They were charging people to see their own credit reports and so they made a modification in the fair credit reporting act. That was 2002 that once a year everybody gets a free credit report. You can access those through AnnualCreditReport.com. That’s a portal that was set up by the bureaus to dispense these free credit reports. They don’t give you scores. They can be kind of a pain in the butt to use for verification sometimes but they do give a free credit report once a year. Now within that legislation, ther was some little back door action going on there, ok. They managed to shift much of the liability for accurate information from the credit bureaus down to the provided creditors, the original creditors, which made the bureaus a lot tougher to sue. A good thing for the bureaus, they like that action. Creditors didn’t like it so much, it changed the game plan pretty significantly as far as how we operate our business because there’s different liabilities and so you have to play the chess game a little differently. Now for the conspiracy theory part of the, during the course of that this happened, Experian, the biggest of the three credit bureaus, was actually being bought out. The majority share of that was being bought out by bought out by company by the name of Bain Capital, Anybody know who that is? Mitt Romney was a majority share holder in Bain Capital. Wonder how that legislation got pushed through? So that was a big change up for them, saved the bureaus billions of dollars and made our life a little harder but it is what it is and you’ve just got to know the rules, right?

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