FTC Report Finds Credit Reports Riddled with Errors

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There have been numerous studies showing that credit reports frequently contain inaccurate information. Now a new report from the FTC confirms this; showing that 40 million Americans have incorrect data showing up on their credit reports. And 20 million of those people have significant errors on their reports; that's 10% of all people with credit. If these numbers don't frighten you then consider this. The report also found that it is nearly impossible for the average consumer to have erroneous information removed from their credit report. 

The FTC findings are not news to anyone who works in the credit industry. The system is currently stacked against consumers. This is one of the reasons that most consumers facing credit issues eventually give up. Their only other option is to sue; a long and arduous task. It is important to note that the Credit Reporting Agencies are required by law to maintain accurate records and to correct errors. Unfortunately, they have found that it is more profitable to take the opposite tack. After all, if credit reports were accurate and could easily be challenged, there would be no market for services like credit monitoring. 

The FTC report was featured on 60 Minutes this past Sunday. That video is below.


This blog post is offered by Jim Malmberg, Executive Director of ACCESS, American Consumer Credit Education Support Services, is a non-profit, tax exempt 501(c)(3) consumer advocacy group whose primary purpose is to disseminate credit education information and assistance to the general public.
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I was thinking about something you said. How refreshing it would be if just ONE of the credit agency stepped it up to say isn't it TIME we improve on our system. How many lawsuits will it take? Any business that supports consumers, is supported by consumers.The credit agencies don't worry about the consumer because they make their money from big business. If they won't change their system, maybe we should change it for them. Why not make the credit agencies compete for our business like you said? Thanks denice, appreciate your time today. We need more people in this world like you.

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