Proposed credit report and score reforms.

Discussion in 'Politics, Religion, Social Issues' started by Technarchy, Sep 11, 2014.

  1. Technarchy, Sep 11, 2014
    Last edited: Sep 11, 2014

    Technarchy macrumors 604

    Technarchy

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    #1
    Our current credit scoring and collection systems only serve one purpose: to empower corporations to justify discrimination, and extortion rates in an age when credit, credit scores and borrowing is damn near integral to everything in life.

    I support her reform proposals. Maybe Obama can get his nonsense together and start empowering the people, which is why he was elected.

    http://thehill.com/policy/finance/217284-waters-proposes-bill-to-overhaul-credit-reporting-rules

    http://www.washingtonpost.com/news/...ses-sweeping-changes-to-credit-reporting-law/

     
  2. Ugg macrumors 68000

    Ugg

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    #2
    Go Maxine! Credit isn't just about credit anymore, it's also about getting a job, a place to live and even volunteering .
     
  3. Southern Dad macrumors 65816

    Southern Dad

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    #3
    A novel idea... Just pay your bills. Your credit report will be fine.
     
  4. mobilehaathi macrumors G3

    mobilehaathi

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  5. Menel macrumors 603

    Menel

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    #5
    Proposed credit report and score reforms.

    Will just make our rates worse because lenders cant calculate their risk as accurately.

    I don't know wtf predatory lending is. Contract is available to read before you sign, or it isn't... And the later should already be illegal... Have they been holding guns to people's heads or something?
     
  6. Southern Dad macrumors 65816

    Southern Dad

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    #6
    Do you mean people should honor their word and actually pay what/when they agreed? Blasphemy.
     
  7. Technarchy thread starter macrumors 604

    Technarchy

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    #7
    The credit reporting system is flawed and antiquated.

    Want proof? Why does shopping for a car hurt your credit score? I should be able to go to 100 dealers, have them submit apps to 100 banks/lenders, and my score shouldn't be affected by a single point.

    And if I do the honorable thing and pay debts, I get punished for 7 years with higher rates because it stays stuck my credit report even if I did the right thing?

    I'm better off not paying it, and letting it get charged off and drop off in 7 years. Same result.
     
  8. burgundyyears macrumors 6502

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    #8
    If my recent experience with my health insurance is any indication, there's nothing too screwed up that Congress can't make worse.
     
  9. capathy21 macrumors 65816

    capathy21

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    #9
    Easier said than done for some. I guess if you get laid off and lose your house and default on your bills in the process, therefore tanking your credit score, it's totally your own fault right?
     
  10. burgundyyears macrumors 6502

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    #10
    Well, you're probably a credit risk in such a situation, which is all a credit score really indicates.
     
  11. LIVEFRMNYC macrumors 604

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    #11
    10,000% TRUTH!!!!!

    Dealers pulling your credit should be considered a soft hit.

    At the moment my credit is around 790s. If I utilize my credit cards past 75% it will drop around 30 points, even though I pay everything on time. That's BS and pretty much feels like it's invading my privacy.
     
  12. Technarchy thread starter macrumors 604

    Technarchy

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    #12
    I dealt with this years ago when I started my own home business. I was basically using 100% of my own credit card limit to get things rolling, and it was paid off 100% every month, never a missed payment.

    Well my "utilization" was too high and it was killing credit score so when came for me to get an SBA loan my rates were higher despite the fact that I never missed a payment.

    Total nonsense.

    There are just some things that should have no impact on your credit score, and it sure as hell has no business factoring into employment, insurance, or renting.

    ----------

    Absolutely. It actually discourages you from looking from the best rates if every inquiry hurts you. This should be a ZERO impacting event. Same for mortgages.

    I can see credit cards or other lines of credit, but cars and homes, hell no.
     
  13. yg17 macrumors G5

    yg17

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    #13
    This. If anything, it shows you're being a responsible consumer by trying to find the best rate.

    ----------

    And then because so many employers run credit reports on potential employees, you can't get a new job to pay your bills. It's a never ending cycle.
     
  14. Technarchy thread starter macrumors 604

    Technarchy

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    #14
    It's absolutely insane that credit can factor into a hiring decision. So if your mother needs brain cancer surgery and you declare chapter 7, you're suddenly an employment risk?

    Same scenario, you drive 10 years without an accident, but have to declare chapter 7, so now your insurance rates go up?

    That's complete ********. This system is rigged to justify corporate rape with unjustified rate hikes for completely unrelated risk factors.

    I support Maxine Waters in this, and I can't stand her ass. If she can get this through and into law, I will be writing her a fat campaign check.
     
  15. ElectronGuru macrumors 65816

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    #15
    If I can play devils advocate on this one...

    Credit scoring often uses the word 'worthiness' which we tend to translate as 'responsible' but credit scores are by and for banks. They are how lenders tell each other who is a better customer. And again, better does not equal responsible. Better is who makes them the most money for the least work.

    In the case of a car, the guy who gets pre approved at one or two banks has the best cost/benefit ratio. And the guy who pays off that car and doesn't buy another is not making the banks any more money. However responsible it is to own a car for 10+ years.
     
  16. noodlemanc macrumors regular

    noodlemanc

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    #16

    Someone that defaults on their mortgage should have a bad credit rating, because they aren't a reliable borrower.
     
  17. Meister Suspended

    Meister

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    #17
    The whole credit system is nothing but a criminal power scheme.
    It puts you in the position of being completely subservient to banks, corporations and the gang of thugs in charge. That's why in certain cultures lending money against interest was punishable by death. Today our entire modern society is founded upon this despicable behavior.
     
  18. Eraserhead macrumors G4

    Eraserhead

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    #18
    Credit reports should only be used for borrowing money. So using them for credit cards, personal loans, mortgages etc is fair enough. They shouldn't affect jobs or renting a house or anything that isn't related to credit though.

    Obviously though they should take unpaid debts into account.

    ----------

    So that shouldn't count against your credit score.
     
  19. Southern Dad macrumors 65816

    Southern Dad

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    #19
    Exactly. It is your own fault. Don't borrow more than you can afford to pay back. Take those factors into your consideration when you sign the loan documents on that house. How many months can you pay the mortgage IF you lose your job. It's called planning. Responsible people do it.

    You are missing a major point. The money that you want to borrow belongs to the LENDER. You are going to them asking them to risk their money by giving it to you. They should consider anything that they feel is relevant.

    The credit scoring system takes into account multiple inquiries from a mortgage or vehicle lender within a certain period of time. So if you have 10 pulls from mortgage brokers within a couple weeks, they aren't going to impact your score as much as if you applied ten times over a year.

    Why shouldn't an employer or landlord be able to pull a credit report on you? If you have a record of making poor decisions with your money, shouldn't that be considered? With a landlord you are entering in a contract for a period of time. The lease. Shouldn't the landlord be able to ascertain the chances of you fulfilling your word?
     
  20. Eraserhead macrumors G4

    Eraserhead

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    Because its got to actually be proportional. What on earth does my credit history have to do with employment, and outside of whether I have ever been in rent arrears what does it have to do with renting a house?

    If people don't pay their rent you can straightforwardly evict them, I would have thought in the "land of the free" it would be even easier to do that than it is here.

    Its like its reasonable to prevent someone who is a pedophile working in a school, or as a taxi driver, but I see no reason they can't become a lorry driver for example.
     
  21. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #21
    So when the government loans out to banks who they had to bail out the rate is 30% right?

    I mean those banks should have prepared for the economic collapse since they are the ones who caused it.
     
  22. Eraserhead macrumors G4

    Eraserhead

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    #22
    This stuff does need to be proportional, but if you want borrow money nothing ever gets done. That's why even when money lending was banned the Jews were allowed to still do it as it was useful.
     
  23. Southern Dad macrumors 65816

    Southern Dad

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    #23
    Rent: When you rent you are actually engaging in a lease. For example, you rent an apartment for $500 per month on a one year lease. You have just signed a contract to pay the landlord $6,000. Your contract specifies that you will pay it at $500 per month but you owe $6k. The landlord should be able to make an informed decision about whether you will pay what you owe. If you move out after 6 months, you still owe the remaining $3k. You can be sued for it and they can get a judgement for it.

    Employment: In many jobs you are trusted with making decisions that effect the employers money. If you can't handle your own money, will you do well handling theirs?

    -----------------------------------------

    That said I agree with some of the proposals in the bill.

    • Easier to remove incorrect information
    • Removal of fully paid negative debts
    • Shortening the time from 7 to 4 years for bad debts (I think this should be changed to make it the same as the Statute of Limitations in the state)
    • Removal of negative student loans if 9 consecutive payments are made on time
     
  24. Eraserhead macrumors G4

    Eraserhead

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    #24
    Don't you support at-will employment laws? If people's circumstances change why the hell shouldn't they be allowed to walk away from a rental agreement (with whatever notice period you'd get on a job).

    Or is this more giving the rich a pass and screwing the poor?

    Funnily enough jobs where you actually handle large amounts of cash - such as working at a supermarket checkout - usually go to low paid people and they usually have poor credit scores.

    To me all this sounds like is a way to prevent the poor from being uppity and getting office jobs where ironically you don't generally handle money.
     
  25. Southern Dad macrumors 65816

    Southern Dad

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    #25
    When you sign a contract, you should live up to the agreement that you signed. If you don't like the terms of the contract, negotiate different terms. My grandfather told me that your word is your bond. If you commit to it, you have to follow through on it. If your word isn't good, why should anyone make a deal with you?

    When you hire someone you have to be thinking about the future. Will this person be able to move up in the company. Can I groom this person to be a manager? A director? Can this person do my job? Why shouldn't an employer carefully review every bit of information available prior to making a hiring decision?
     

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