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Positive changes in Credit Reporting for Consumers

Positive changes in Credit Reporting for Consumers

March 9th, 2015 | About your Credit!

The Atlanta Business Chronicle published great news this morning! From Equifax, whose home is in Atlanta, joins the other major Credit Reporting Agencies, Trans Union, and Equifax, and have made changes in how they report and handle credit issues for consumers. Read the article in full below.


Equifax, other credit giants change way they handle errors, medical debt

Mar 9, 2015, 6:07am EDT
Updated: Mar 9, 2015, 9:14am EDT

Equifax, Experian and TransUnion announced early Monday the companies are launching a program to improve their ability to collect complete and accurate consumer information.

The companies say the program, called the National Consumer Assistance Plan, will provide consumers
more transparency when dealing with credit bureaus about their credit reports.

The plan focuses on enhancements in two areas: consumer interaction with national credit reporting agencies (CRA) and data accuracy and quality, the agencies said.

National Consumer Assistance Plan Highlights

Consumer experience:

  •     Consumers visiting www.annualcreditreport.com, the website that allows consumers   to obtain a free credit report once a year will see expanded educational material.
     
  •     Consumers who obtain their free annual credit report and dispute information resulting in modification of the disputed item will be able to obtain another free annual report without waiting a year.
     
  •     Consumers who dispute items on their credit reports will receive additional information from the credit bureaus along with the results of their dispute, including a description of what they can do if they are not satisfied with the outcome of their dispute.

    The CRAs are focusing on an enhanced dispute resolution process for consumers that are proven victims of identity theft and fraud, as well as those involved in mixed file situations.

Data accuracy and quality:

  •     Medical debts won't be reported until after a 180-day "waiting period" to allow insurance payments to be applied. The CRAs will also remove from credit reports previously reported medical collections that have been or are being paid by insurance.
     
  •     Consistent standards will be reinforced by the credit bureaus to entities that submit data for inclusion in a credit report (data furnishers).
     
  •     Data furnishers will be prohibited from reporting authorized users without a date of birth and the CRAs will reject data that does not comply with this requirement.
     
  •     The CRAs will eliminate the reporting of debts that did not arise from a contract or agreement by the consumer to pay, such as tickets or fines.
     
  •     A multi-company working group will be formed to regularly review and help ensure consistency and uniformity in the data submitted by data furnishers for inclusion in a consumer's credit report.

Carla Caldwell 
Morning Edition Editor- Atlanta Business Chronicle

Equifax (NYSE: EFX) is based in Atlanta.

 

 

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