“Every move you make, every step you take…”: CFPB to keep tabs on big credit reporters

The Consumer Financial Protection BureauAn independent federal agency created by the Dodd-Frank Act responsible for regulating consumer protection with regards to financial services and products. (CFPB), an independent government watchdog instituted under the 2010 Dodd-Frank Act, announced they will begin supervising large credit reporting companies, effective September 30.

In the CFPB’s sights are big game like Experian Information Solutions Inc., Equifax Inc. and TransUnion, not to mention 27 other large credit reporting companies, which together comprise 94% of the market’s annual receipts.

There is substantial reason to implement such vast oversight. Big expenses such as education and home purchases are virtually impossible for the majority of consumers without fair access to credit. A good credit scoreA numerical representation of a borrower's creditworthinessan individual’s ability to borrow money, determined by their income and previous debt payment history., based on credit report information obtained from a credit bureau. is crucial to obtain a loan on good terms. Most large purchases traverse through the credit portal, so an error in a reported credit scoreA numerical representation of a borrower's creditworthinessan individual’s ability to borrow money, determined by their income and previous debt payment history., based on credit report information obtained from a credit bureau. can be disastrous, first for the consumer and then for the economy.