Bad Credit Doesn’t Really Reflect a Client’s Responsibility
Bad Credit Doesn’t Really Reflect a Client’s Responsibility
Credit reporting industries believe that an individual’s credit status reveals his personality, most especially his sense of responsibility. However, the New York Times and the Columbus Dispatch, two renowned newspapers are arguing otherwise.
Recently, New York Times studied how destructive medical bills are to people’s credits. Columbus Dispatch on the other hand, has been focusing their time in investigating how frequent credit errors occur on reports and how difficult it is to have them corrected.
In fact after a year of intense investigation, the team gathered and analyzed about 30,000 of the complaints that consumers filed in the Federal Trade Commission office. Many lawyers in 24 different states held cases against credit unions for their breach in the Fair Reporting Act. Among these credit unions in the United States are the Equifax, Experian and TransUnion.
According to reports from observers, the study that the Columbus Dispatch conducted on the protests against credit-reporting companies was the most inclusive one ever done.
Some of the errors that were documented include errors on personal information such as birth dates, names, and age. In fact, most of the complaints include mistakes in the customer’s transactions in car mortgages, credit card loans, and approved bank sales for foreclosures, paid-off automobile loans that were mistakenly recorded as repossessed and paid-off credit cards that were reported as delinquent.
The sad thing is, even if many of this information are just minor errors, credit unions seem to be powerless in changing them. This makes it very difficult for clients to have their records fixed.
However, not only errors in records can cause bad credit for customers. Medical necessities also play a vital role in the area. According to the New York Times, since most of the earnings of medical producers come from patients, many hospitals and doctors are billing debts to clients, and these debts can be overwhelming.
According to FICO, it isn’t surprising for someone with a spotless credit to fall into bad credit since medical-related debts and collections from credit agencies have equally damaging effects on a person’s credit standing.
But this can be remedied with a good policy for medical related appointments. New York Times suggest that an act for Medical Debt Responsibility and the Affordable Care Act could help in the financial needs of Americans.
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