Big Three CRAs being sued
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Posted by Bob3
(68.95.154.241) on June 07, 2004 at 02:39:56:
Some excerpts..........see link for full story. Suits challenge credit bureaus
- Kenneth Harney
Sunday, May 2, 2004 In separate class-action suits, independent credit reporting companies have accused the three national credit bureaus of antitrust violations and predatory pricing designed to put them out of business. That, in turn, according to the suits, would harm millions of home mortgage applicants whose credit files contain erroneous, incomplete and outdated information. Consumer group studies in recent years have documented serious problems with the accuracy of the raw data in the private national bureaus' files. A 2002 study of 500,000-plus randomly selected credit files by the Consumer Federation of America and the credit association found that nearly 80 percent were missing at least one revolving credit account in good standing, one-third omitted a mortgage account that had never been paid late, and 43 percent of the files had conflicting information about late payments. Accurate information in the bureau files is critical to a consumer's credit score. Erroneous negative information typically lowers a score. Omission of positive, on-time payment information also lowers scores. With so much riding on credit scores in the increasingly automated home loan market, mortgage brokers and banks have turned to local, independent credit agencies to get erroneous information purged or corrected quickly.
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