|Received:||11/8/2004 10:58:43 PM|
|Agency:||Federal Trade Commission|
|Rule:||Advance Notice of Proposed Rulemaking, Request for Comment|
|Docket ID:||RIN 3084-AA94|
Comments:While I generally disagree with govenment regulation of companies and industries, I agree whole heartedly with the regulation of the credit system. I have made contact with numerous legislators concerning problems with this system and the most fundamental problem is that it is a profit system and those that are most adversely affected (consumers) are those with virtually no power. By this I mean several things. One is that any institution (bank, etc.) can post a negative issue on a consumer's credit report and even though the consumer can dispute it and make a notation, the consumer is not able to have it removed if a disagreement still exists with the company. An example is that I have a dispute with Cingular and they owe me a credit and agree that they owe me a credit but will not offer a settlement and even though I have formally disputed the charge and done the most a consumer can do just short of filing suit, there is still a negative posting on my credit report. Additionally, all parties involved in the credit system, except consumers, profit from bad or negative credit information. I was curious why I wasn't getting decent rates on loans so I had to pay for my credit reports out of convenience, which obviously generates revenue for the bureaus, and I paid because free reports were not available online. The institutions (banks, credit card companies, etc.) also benefit from poor credit scores because they can charge a higher interest rate. This is all besides the primary focus for the input that is requested but the main point is that the guidelines should be very clear and in my mind these guidelines should set a definite price for the credit scores and not allow for increases because technology continues to provide greater efficiency which would negate any increases due to economic conditions. There should also be a set price, or at least a 'regulated' price for any type of peripheral services related to the credit score. For example a 'credit analysis' or whatever other services the bureaus may come up with. I hope this input helps as I typically do not participate in such things but I do feel that there are major problems with the credit system even though many gains have been made.