Credit Bureaus Face Increased Governmental Scrutiny

These days, most everyone probably is familiar with credit bureaus and knows about the big three: Equifax, Experian and TransUnion. If you’ve ever tried to get a loan from a bank or credit union, ever attempted to acquire a credit card, or even just applied for a job recently, most likely you’ve had to submit to a thorough credit check conducted by one of the major credit reporting companies. These firms, whose job it is to basically collect all the financial details of people’s lives, are increasingly an ever-present part of modern life.

Earlier this week, the Consumer Financial Protection Bureau, a federal consumer watchdog agency established two years ago, announced that it is going to begin overseeing and supervising the largest credit bureaus this coming fall. One of the main reasons for the push to establish federal oversight over what has been a fairly unregulated industry seems to be that a sizable percentage of credit reports — the byproduct of credit checks — contain significant, injurious errors that can dramatically impede consumers’ ability to obtain various sorts of items.

On top of that, these errors, if they are even ever identified by the consumers whose credit reports are marked by them, are often extremely difficult to resolve and get corrected.

Undoubtedly, credit bureaus can serve a beneficial purpose for consumers. Through their activities, they can help individuals acquire important things that they need. That being said, however, the new regulatory stance in Washington, D.C., obviously represents a response to a real problem. The cold, hard truth is that credit bureaus can sometimes end up being more of a hindrance than help.

Which leads us to this point: Here at Bad Credit Loans, our lenders don’t require prospective borrowers to submit their credit scores and don’t look at their credit reports in determining their eligibility for our fast financial assistance. So while the aforementioned new development regarding credit bureaus may end up being a big boon to consumers in general, ultimately it won’t really affect those who are looking to us for quick cash. Doing away with stringent credit requirements is just one of many ways in which we try to make it easy for people to get the help they need, without any unnecessary barriers blocking their way.