Since they're not controlled by the government then they are controlled by the market, as in, private companies. Not sure that's better, you could argue with a government controlled one you still have "some" rights and due process, with a private one there's not much you can do if they decide to give you a bad rating. I rather have none, to be honest.
back
1 comments
First, you do have rights under existing regulation and in a court of law.
Second, I’m really not sure what the lending landscape looks like if you don’t have these ratings. (Not saying better or worse, just not sure) I guess if you want to go tell every lender your life story and get your own individual interest rate and negotiate it all yourself then feel free? Numbers tend to free up liquidity because it creates a relatively well understood framework that banks can hedge and lend on. This enables speed as well as more lending.
I’m not a huge fan of the consolidation of ratings agencies but I do like the speed and available credit these scores enable.
>First, you do have rights under existing regulation and in a court of law.
Sure you can take a credit reporting agency to court, if you can afford a lawyer.
You can take creditors to court, if you can afford a lawyer.
You can file bankruptcy, on some debts, if you can afford a lawyer. But that bankruptcy follows you, it will flat out prevent you from employment in certain industries, it will prevent you 99% of the time from any job that requires a security clearance for the rest of your life, it will severely hinder your ability to have credit in the future.
Sure, you can dispute incorrect things on your credit report... if you know how. Then of course, all a creditor has to do is, within a few months, say 'yes that information is correct' and the dispute rules in their favor.
Sure, if someone steals your identity and takes out some lines of credit you can attempt to undo that damage but it could take years (if ever) to fix your credit report while employers and would-be-creditors see you as someone that defaulted on debt, even though you had nothing to do with it, and treat you as someone irresponsible and unreliable.
All of this while the credit agencies are SELLING this report to anyone that wants it, effectively telling the buyers how allegedly trustworthy and responsible you are.
I’ve heard small claims court is quite effective for redress as well for some of these things.
I agree that disputes are not easy, but you are not being denied rights by the state if your credit is bad which is the key difference here vs China.
If you think we need more reform of credit reporting (I would not disagree) then please contact your representative - that’s going to be the way to better regulate the dispute process and provide more recourse for citizens.