Credit Reporting Needs to Be

Credit reporting needs to be reformed in the United States. General Purpose: The general purpose of this presentation is to provide more information on the point of the need of reform of credit reporting. Specific Purpose: The specific purpose of this presentation is to persuade on the point of reforming the Fair Credit Reporting Act. Privacy protections are necessary to protect consumer information. However, they also can create a great asymmetry between the amount of knowledge a creditor has about a credit applicant's history and what the applicant knows.

More accurate credit reporting would allow people who otherwise might not qualify for credit to do so and also for lenders to weed out bad risks that otherwise slip through the cracks. Credit Reports have many errors. The most valuable thing we have is our good name. The most common reflection of our reputation as a trustworthy consumer is our credit report. B. Even when the information contained in our credit reports is done with more care, it does not always tell a true story. B.

A study released by the U.S. Public Interest Research Group in June 2004 found that 79% of the consumer credit reports surveyed contained some kind of error or mistake ("Mistakes do happen:," 2004). 2. Fair Credit Reporting is the Law A. More accurate record keeping and reporting is necessary to insure proper processing of credit reports and credit applications. B. Penalties and requirements need to be stiffened for inaccurate data ("The fair credit," 2004). 3.

Most of the problems with regard to issues of accuracy and privacy are caused by unauthorized third party disclosure of debtor information. A. Many times, private debtor information that is revealed to third parties in the chain of transmission from the debtor is unauthorized. B. Due to outsourcing of various office services overseas, safeguarding of private debtor information is problematic at best. C. The outsourcing of the handling of private debtor information to overseas parties is not covered and should be made illegal under the Fair Credit Reporting Act of 2004. 4.

The amount of information gathered and considered in credit reporting should be increased. A. Currently, people who should not get loans get them due to not enough information being gathered on their credit worthiness. B. Increased information gathering would give many debtors who could not acquire credit a chance by giving them a.