Credit Report Accuracy
In late January 2015, The Federal Trade Commission issued a follow-up study of credit report accuracy and found that most consumers who previously reported an unresolved error on one of their three major credit reports believe that at least one piece of disputed information on their report is still inaccurate.
The study found that one if five consumers had an error that was corrected by a credit reporting agency after it was disputed on at least one of their three credit reports. The study also found that about 20 percent of consumers who identified errors on one of their three major credit reports experienced an increase in their credit score that resulted in a decrease in their risk tier, making them more likely to be offered a lower auto loan interest rate.
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- Ask students what are their legal remedies if a credit reporting agency engages in unfair reporting practices.
- Bring to class examples of credit-related problems of individuals and families. Suggest ways in which these problems might be solved.
- Why is it important for consumers to check their credit reports at least once a year?
- What can consumers do to ensure that their credit reports are free from errors?