The 30 largest credit reporting companies are about to have a brand new babysitter on the case — the Consumer Financial Protection Bureau says it will be begin to supervise those companies starting this fall. Together, they account for 94% of the market’s annual receipts.
There are some familiar names included under the CFPB’s federal oversight umbrella, including the top dogs: Experian Information Solutions Inc.,Equifax Inc. and TransUnion. Together, those companies issue more than 3 billion consumer credit report cards each year and have the goods on more than 200 million Americans in their files, reports the Los Angeles Times.
“Credit reporting is at the heart of our lending systems and enables many of us to get credit, afford a home or get an education,” said bureau Director Richard Cordray. “Supervising this market will help ensure that it works properly for consumers, lenders and the wider economy. There is much at stake in making sure it is both fair and effective.”
The CFPB will work to ensure that information produced by the companies is accurate, as those reports are the golden ticket to snagging a credit card, a mortgage and other important things in life. The bureau will also issue an advisory to consumers about the importance of checking their credit reports and how they can dispute mistakes.
“Up to this point, no single federal government agency could access all the information necessary to generate a complete picture of what was happening inside these companies,” Cordray said in written remarks prepared for Monday’s hearing. “Our country’s credit system is a resource in which we all have much at stake — both directly and indirectly — and we need this system to operate effectively in order for the credit markets to work properly and fairly,” he said.
U.S. consumer agency to oversee big credit reporting firms [Los Angeles Times]