Last week, the Consumer Financial Protection Bureau announced it was drafting new regulations that would allow for the oversight of the largest credit reporting bureaus and debt collection companies. The reason, explains CFPB head Richard Cordray is that many consumers are in the dark about these businesses and feel somewhat helpless when it comes to dealing with them.
“Consumers don’t get to choose their debt collector,” Cordray tells the L.A. Times’ David Lazarus, “and they don’t get to choose whether to have the consumer credit reporting agencies keep track of their credit history.”
He says the three main credit reporting agencies — TransUnion, Equifax, and Experian — represent a “murky unknown” for many consumers.
“You probably don’t know how much information they have on you, or how much influence they have over your credit,” he says.
The regulations, on which the CFPB is currently seeking public feedback, would allow for government oversight of about 94% of the credit reporting market and around 63% of the debt collection business.