Business

Feds Make Unprecedented Move to Regulate Credit Scoring

Feds to Regulate Credit Score CompaniesNEW YORK (The Blaze/AP) — File this under “What could possibly go wrong?”

The companies that determine Americans’ credit scores are about to come under government oversight for the first time.

The Consumer Financial Protection Bureau (CFPB) said Monday that it will start supervising the 30 largest firms that make up 94 percent of the industry. That includes the three big credit reporting firms: Equifax Inc., Experian, and TransUnion.

In remarks prepared for a speech Monday, Richard Cordray, the government agency’s director, said that scorekeeping by credit bureaus plays such a large role in Americans’ financial lives, it requires scrutiny. (You may recall President Obama had to circumnavigate Congressional authority in order to get Cordray his consumer watchdog position.)

Feds to Regulate Credit Score CompaniesPresident Barack Obama shakes hands with former Ohio Attorney General Richard Cordray after announcing his nomination to serve as the first director of the Consumer Financial Protection Bureau (Manuel Balce Ceneta/AP File)

Lenders, like banks or auto finance companies, use credit scores to measure eligibility for mortgages, credit cards and a wide variety of other consumer loans. Low scores based on missed or late payments, for instance, can mean higher interest rates or rejected applications.

There have been thousands of complaints about the bureaus by consumers who claim they are unsuccessful getting credit reporting agencies to correct inaccurate information contained within credit reports.

So let’s get the feds involved, right? Again, what could possibly go wrong?

The protection bureau will start regulating the industry after the new rule takes effect on Sept. 30.

The Associated Press contributed to this report.

Comments (61)

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  • lefty_lucy1960
    Posted on July 16, 2012 at 8:50pm

    while the people and those elected to serve them watch as they lose any power they ever had..

    Report Post » lefty_lucy1960  
    • poorrichard09
      Posted on July 17, 2012 at 8:52am

      One of my favorite terms during the pre-real estate crash was NINJA loans: No Job, No Income or Assets; obviously very poor credit risks, but hey, money was cheap.

      Now people will have NINJAS with gov’t approved 800 credit ratings. What could possibly go wrong?

      Report Post »  
    • wingedwolf
      Posted on July 17, 2012 at 10:18am

      I am more concerned that this will be an opportunity for them to harm the credit ratings of people who have earned them to make things more “fair.”

      Report Post » wingedwolf  
    • Uncle Dave
      Posted on July 17, 2012 at 2:38pm

      Does this mean the United States of Welfair will have an A++ Rating again??

      Report Post » Uncle Dave  
  • Kylestarr
    Posted on July 16, 2012 at 8:16pm

    Ok, I can see as some have already comment that those who disagree with the Dem’s or bid O are going to get killed by this.

    I can see goverment jobs and Unions getting a high credit score no matter.

    I can see big buisness and the little peole who side with the Rep. getting a low credit score no matter.

    Not to mention that big O will find a way though this to get America back to a grade A.

    I wonder when the cat will stop being alowed inside the bird cage.

    Report Post » Kylestarr  
    • girlnurse
      Posted on July 16, 2012 at 8:40pm

      I am torn and I dont know what the answer is but for me it is always to err on the side of LESS GOVERNMENT. I mean someone who had a perfect credit score and lost their house recently through no fault of their own over this economical situation but now they can’t even rent a place to live???? Its out of control! If someone rents a place–if they do not pay the rent for 3 weeks (tops) they should be booted out! Use the KISS priniciple and keep it simple! But nothing is simple with the government…and thats what scares landlords and EVERY BODY who is simply trying to do an honest day of business! TOO many lawyers is another problem!

      Report Post » girlnurse  
    • term limits for congress
      Posted on July 17, 2012 at 10:52am

      I see three things:

      1) Credit scores are outlawed because they’re discriminatory [sp]. Everybody gets an 800.
      or
      2) Since feds will already have our medical records, they combine the two to make health care decisions. Sorry, your score is 350 – you cannot have that surgery.
      or
      3) There will be a new entitlement program to help people with bad credit scores.

      It will not be good.

      Report Post »  
  • piper60
    Posted on July 16, 2012 at 7:40pm

    For the Love of Big Brother.

    Report Post » piper60  
  • progressiveslayer
    Posted on July 16, 2012 at 7:38pm

    Yes the feds need to regulate credit reporting agencies since they’ve done such a great job with our countries credit rating.We have our first and last Marxist POS president and get our credit rating downgraded after he works his magic on our economy, shocking indeed.

    Report Post » progressiveslayer  
  • progressiveslayer
    Posted on July 16, 2012 at 7:32pm

    Ah yes the beast found another industry to destroy,regulate,regulate,regulate that’s all they know.
    It‘s funny when you hear people complain about Ron Paul they say what’s he ever done in congress,how many laws has he authored,I don’t see how thousands of new laws and regulations every year enhance our liberty and freedom from government.But people have strange views,yes clearly more regulations are needed to protect us from ‘evil’ corporations.

    What’s protecting us from the republic destroyers in modern day America? It‘s supposed to be the constitution but we’ve seen how this Marxist heathen and even Bush has eviscerated the constitution with trillions of dollars in unconstitutional social programs and we have a one party system the big government party and it’s crushing all of us.

    Report Post » progressiveslayer  
  • Rht55
    Posted on July 16, 2012 at 7:16pm

    A process has begun that was foretold. That which is to take place speaks of a series of ill-fated events which will happen as America has turned it’s back on God. Cause and effect is in place as mankind runs to every refuge but God in order to appease himself. As knowleddge and technology has increased in this rapid paced world, the sins of old, immorality and rebellion , now evident in this world tell us, there is nothing new under the sun. What does immorallity and rebellion evolve to?

    Report Post »  
  • blackfeather
    Posted on July 16, 2012 at 7:09pm

    …yep…one more move to communism.

    Report Post »  
  • Outraged Patriot
    Posted on July 16, 2012 at 7:09pm

    The left will use this credit rating control for social justice you wait and see!

    Report Post »  
    • Inlightofthings
      Posted on July 16, 2012 at 8:00pm

      You mean how they primed the pump for sub-prime?

      Report Post »  
    • HorseCrazy
      Posted on July 16, 2012 at 8:20pm

      exactly like they did with subprime in the ghettos. thats what it was too get a loan ANYWHEREwith no regard to the deterioration of the neighborhood crime rate or economy of the local area because after all facts are racist

      Report Post »  
  • VanGrungy
    Posted on July 16, 2012 at 7:05pm

    Remember the CRA?

    this will be worse because it encompasses EVERYTHING

    Report Post » VanGrungy  
  • becky21k
    Posted on July 16, 2012 at 7:04pm

    This actually seems like a good thing, until you see who’s doing it. Unfortunately you do need regulation to combat greed – it’s in their interest to leave bad things on a credit report because that means they can charge higher interest rates on those people.

    Report Post »  
    • HorseCrazy
      Posted on July 16, 2012 at 8:24pm

      i agree we need some safety measures on credit for certain. I have seen my credit destroyed by fraud it took 2 accountants and an attorney a lot of money and one year to clean up. also have seen a lot of abuse by companies during billing disputes destroy my clients credit without cause or almost as blackmail in certain situations. I also think the fact people have no debt and pay in cash having that considered being a bad thing is flat out awful and wrong it forces them to ge credit cards in order to ever get a mortgage. something has to be done to give the creditors and credit reporting agencies less power and less secrecy and control over the “little folks” but more bloated idiotic government, not the answer.

      Report Post »  
    • Baddoggy
      Posted on July 16, 2012 at 8:26pm

      No, they want everyones credit wiped clean so they can borrow and bust out the credit card companies….They want the same thing to happen that happened with housing. FREE MONEY!

      Report Post » Baddoggy  
    • Bellini
      Posted on July 17, 2012 at 3:07am

      I absolutely agree, currently a company that you have never dealt with has the power to damage your credit simply because you move into the house of someone who had unpaid debts, or just because you get their former phone number – and it does happen.

      This is a legitimate area of government regulation in order to protect people from slander.

      That being said, I haven’t analyzed the specifics of what they want to do in this case.

      Report Post »  
  • P C BE DAMNED
    Posted on July 16, 2012 at 7:01pm

    Do you realize that if this election does not put the government on the run that this nation will come apart with violence from the Americans who will not be enslaved. We are holding back to see if Glenn is right. There are those who are waiting to release a lot of violence, pent up righteous violent payback.

    Report Post » P C BE DAMNED  
  • girlnurse
    Posted on July 16, 2012 at 6:54pm

    LOVE your servitude:
    I LOVE my servitude to Christ NOT the government..
    http://www.youtube.com/watch?v=wQgN_X8r1UQ&feature=player_embedded

    Report Post » girlnurse  
    • Rht55
      Posted on July 16, 2012 at 7:06pm

      I commend your loyalty to Christ. Things of this age are transcient,but the eternal things remain. All that is revealed as power and authority is subject to that which is above. As the heavens are above the earth such is the spiritual above the temporal( that of the earth). As a stone gathers speed as it moves downhill, so will those things which will happen rapidly transpire.

      Report Post »  
  • Defiant530
    Posted on July 16, 2012 at 6:52pm

    Sooo if we don’t vote democrat our credit scores will go down?

    Report Post »  
  • Silversmith
    Posted on July 16, 2012 at 6:52pm

    “Watch out” is all I have to say.

    Silversmith

    Report Post » Silversmith  
  • justice41
    Posted on July 16, 2012 at 6:46pm

    Keep your damn hands off. The credit scoring system was set by private business for their own purposes in rating the credit worthiness of individuals. The feds screwed up the banking system and housing by using threats and intimidation wants credit based on representation in the general population (statistics) rather than actual past history. Leave businesses alone get out of our personal life. We don’t need your nanny state. Politicians are a bunch of thieves, nothing more.

    Report Post »  
  • Pounding_hammer
    Posted on July 16, 2012 at 6:45pm

    I have a dream.

    Of government offices issuing checks to all the (democrat) people.
    Of each city, producing green solar & wind power for the people of their towns. (sorry those cities who don’t get much sun or wind).
    Of internet, being free of offensive material that might tarnish the reputation of our great dictator-in-chief.
    Of groceries free through food-stamps, drugs free to use by all, sex and abortions at each street-corner, and bikini-clad men spanking each other down the streets while our vulnerable generation watches.

    I AM OBAMA, and I approve this message.

    Report Post » Pounding_hammer  
    • Stoic one
      Posted on July 16, 2012 at 6:57pm

      You are most likely correct ( If we could read the thug in chief’s mind)

      Report Post » Stoic one  
  • GaltLine
    Posted on July 16, 2012 at 6:33pm

    The credit companies should quit giving credit scores the minute the feds show up. Dump all files. Shred all procedures. Pay all their employees salaries not to work for 2 to 3 years if they promise to work for no other credit score type company or agency. Let the takers stew in their own juices.

    Report Post »  
    • chips1
      Posted on July 16, 2012 at 6:59pm

      In that case, they will just put all of the numbers in a hat and pick your score. My luck I’ll get # 6 7/8.

      Report Post »  
  • NHwinter
    Posted on July 16, 2012 at 6:28pm

    Every week his does something else to take over our financial system and our lives. How can all this ever be undone? And some say Romney isn’t any better than Obama. Where do those people have their heads? You’d have to have Stalin or Hitler running against Obama to say there is no difference in candidates.

    Report Post » NHwinter  
    • GaltLine
      Posted on July 16, 2012 at 6:43pm

      Romney has not said what he is except that he has been a successful businessman. Samuel Adams was a lousy businessman but a great proponent of liberty and the elements of capitalism. When he wrote you knew what he stood for and who he was. If Romney won’t say he will turn his back on Socialists, Communists, and Marxists; how can we not say he will walk just a little more slowly into the oblivion.

      Report Post »  
  • Too_Far_Gone
    Posted on July 16, 2012 at 6:27pm

    New government motors “Volts” for everyone ! Just ignor the fact you’re selling yourself into slavery ..

    Report Post » Too_Far_Gone  
  • Al J Zira
    Posted on July 16, 2012 at 6:27pm

    It seems like a sprint by this administration to get as much regulation as possible in place before the election.

    Report Post » Al J Zira  
  • freenj
    Posted on July 16, 2012 at 6:22pm

    So what does this mean, everyone no matter how bad their credit is automatically gets an 800, so they can go out and buy things, that they know they can’t afford. Sounds about right to me. Another way to skin the economy.

    Report Post »  
  • girlnurse
    Posted on July 16, 2012 at 6:19pm

    YES the banks control us in every way. Yea “We‘re from the government and we’re here to help” RIGHT!

    Report Post » girlnurse  
  • BetterInformed
    Posted on July 16, 2012 at 6:12pm

    We can also get rid of the ATM’s. We’ll have someone from the Government stand outside banks and hand out money.

    Report Post »  
    • girlnurse
      Posted on July 16, 2012 at 6:20pm

      Or maybe they could put a chip in us and just turn it off when we do something they don’t like??

      Report Post » girlnurse  
    • BetterInformed
      Posted on July 16, 2012 at 6:34pm

      Now I’ll be able to buy that windmill for the back yard.

      Report Post »  
  • Snowleopard {gallery of cat folks}
    Posted on July 16, 2012 at 6:11pm

    One more step in the ever growing tyranny of Obama. Take control by the Feds of one more set of the economy, and slowly boil the frog in the pot of water, and no one cares.

    Report Post » Snowleopard {gallery of cat folks}  
  • Individualism
    Posted on July 16, 2012 at 6:08pm

    how about buy what you have the money for now and not later.

    Report Post » Individualism  
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