Bad credit can affect a consumer’s ability to get a car loan, mortgage and even a job. For many borrowers, dealing with a poor credit report is difficult enough. But the process can be exacerbated by an error affecting one’s score.
One of the reasons it’s important for consumers to check their credit reports regularly is that an error can negatively impact a borrower’s credit number. The process to dispute these errors can be complicated and ineffectual.
But with the new Consumer Financial Protection Bureau established by the government looking to help consumers with bad credit, some are wondering if the new group will take over as an arbitrator in credit disputes. According to the Wall Street Journal, doing so would be a great start for an organization looking to prove its worth to the consumer.
Currently, borrowers who spot an error on their report must bring it to the attention of the credit bureau issuing the score. The bureau than boils the often complex details of the complaint into a code, which is forwarded to the lender. The lender than either approves or rejects the complaint. Although 11 percent of all statements on credit reports were disputed since 2005, only 2 percent of those were ever changed because of error.
The news source suggests that the CFPB could step in and provide a relief for those unfairly facing bad credit.