begin quoting Tracy R Reed as of Mon, Mar 26, 2007 at 02:23:40PM -0700:
> Stewart Stremler wrote:
> >That's back-to-front; they *lose* nothing by reporting incorrect
> >information on you -- they've cleverly made it your responsibility
> >to ensure that /their/ database is correct.
>
> But they do. My bank WANTS to be able to loan me money. If incorrect
> info is on my credit report which would prevent the bank from making me
> the loan and making money off of me the bank will stop using that credit
> bureau.
How will they know?
Pay for independent verification? Hardly.
It might be that a slightly corrupted credit report gives your bank the
opportunity to charge you a higher interest rate ("'cuz your credit
score isn't so good"), which makes your bank MORE money.
> Likewise, if a credit report lacks certain info that someone
> does not pay on time or has bankruptcies or judgments or whatever the
> bank will make a loan and likewise lose money.
No skin off the nose of the credit bureaus if financial institutions
fail to inform them of poor credit risks.
Granted, they have no incentive to make up anything about you, but they
don't have much incentive to double-check bogus reports -- and it's in
their best interests to first investigate positive reports, not
negative.
--
This isn't to say that the current system isn't mostly good enough.
Stewart Stremler
--
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