The System Is Broken
Congress Members may not always agree, but they do agree the Credit System is broken
Congress has a message for American credit bureaus: The current system for determining credit scores isn’t working. Credit scores are used for more than just basic loan, credit card and mortgage applications. Many landlords and apartment complexes rely heavily on them. Insurance products like renters insurance and auto policies may also require a credit check, depending on the provider. Even some employers may seek a credit report before hiring a candidate. There are so many meaningful things that rely on a credit score.
Though they’re widely relied on, the credit reports of about 1 in 5 people has an error of some kind, according to a study by the Federal Trade Commission. Members of the House Financial Services Committee aren’t having it anymore and are calling for accountability and change.