Read + Write + Report
Home | Start a blog | About Orble | FAQ | Blogs | Writers | Paid | My Orble | Login

Thinks 2 Much - Thinking And Consideration Reveals Our Motive

How To Monitoring Credit Report Agencies

August 31st 2012 07:34
We all know every time a financial transaction occurs using a credit card that activity quickly becomes of interest to the credit card issuer and to the credit reporting agency used by the issuer, but the good news is finally somebody will be watching those credit report agencies on behalf of the consumer.

Beginning September 30, 2012, the Consumer Financial Protection Bureau will become the Big Brother watchdog focusing on Equifax, TransUnion, Experian, 30 lesser-known credit report agencies, and their clients, the creditors. Recent investigation on the part of the CFPB indicates that the three major agencies issue three billion credit reports in addition to maintaining files on an estimated two million individuals. In addition to monitoring these agencies, the CFPB will begin zeroing in on the human resource departments of large companies as well as small business employers to ensure strict adherence to Federal Fair Credit Reporting Act statutes relative to criminal and non-criminal background checks. In the interest of The American People, via random file selection, some things the CFPB will be watching very closely are:


Small Business Credit Card Providers

For the protection of entrepreneurs and small business owners electing to use their name as a company title i.e., John Doe Tree Removal Service, credit card providers will be required to furnish proof of encryption capability for computer storage of information including social security number and proprietor identification. Since small businesses do not fall under the umbrella of Credit Card Responsibility and Disclosure Act 2009, the CFPB will be watching for any attempt by a card provider and credit report agency to link entries for business credit activity and history to a personal credit file.


Credit Application Receipt Via Mass Mailing

While everyone knows that application for a traditional line of credit or loan involves inquiry into personal credit history, most consumers are unaware that some lending institutions, particularly credit card companies offering already-approved invitations, are making inquires which can create a yo-yo effect on an individual's credit score. Regardless of whether credit card application is actively instituted or unsolicited, there is currently no safeguard in place to prevent the reporting of application-rejection information to a credit report agency.

Employers and Potential Employers

Given the current economic situation and unemployment percentage nationwide, many potential employers are electing to exercise their right to make inquiry into an applicant's personal credit standing. While the permission for this request must be obtained in writing, CFPB findings reveal there is no safeguard in place to prevent the retention of this written permission once the applicant is hired. Suspicions are rampant that if potential personnel-layoff lists are compiled, some employers may be using the initial written permission as a tool to seek current financial information for an employee unbeknown to him or her. Many employees may have been passed-over for promotion due to the employer's ability to obtain information regarding credit activity, amounts owed and payment history for tax liens, medical expenditures, and child/spousal support typically found in credit reporting agency files.

Authorís Bio:Steven Garcia is a well known author and writes articles related to finance. For more information on the same visit the website Creditreport.org.
33
Vote


   
subscribe to this blog 


   

   


Add A Comment

To create a fully formatted comment please click here.


CLICK HERE TO LOGIN | CLICK HERE TO REGISTER

Name or Orble Tag
Home Page (optional)
Comments
Bold Italic Underline Strikethrough Separator Left Center Right Separator Quote Insert Link Insert Email
Notify me of replies
Your Email Address
(optional)
(required for reply notification)
Submit
More Posts
2 Posts
2 Posts
10 Posts
703 Posts dating from July 2006
Email Subscription
Receive e-mail notifications of new posts on this blog:
0
Moderated by Karen Daniel
Copyright © 2012 On Topic Media PTY LTD. All Rights Reserved. Design by Vimu.com.
On Topic Media ZPages: Sydney |  Melbourne |  Brisbane |  London |  Birmingham |  Leeds     [ Advertise ] [ Contact Us ] [ Privacy Policy ]