FEDERAL AGENCY TO MONITOR CREDIT BUREAUS

For the first time, the federal government will begin overseeing credit bureaus. As outlined in the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Consumer Financial Protection Bureau (CFPB) will gain new powers over non-bank financial service providers. The CFPB will gain new powers over non-bank financial service providers. The CFPB on July 16 announced the new rules, which will start in September. CFPB will review the performance of credit reporting companies that have accrued $7 million or more in annual receipts. There are about 30 bureaus that size or larger, which account for about 94 percent of the market. Credit bureaus monitor nearly every American adult and the information they collect and share affects people's lives and their ability to get loans. False information on a credit report can prevent a person from qualifying for a loan or mortgage and it can spike the costs of a loan. Apartment leasing agents and hiring managers can check credit reports and reject an applicant due to unfavorable data, even if it is a mistake. Individuals should watch their own credit and report errors. The law requires the three primary credit bureaus - TransUnion, Experian and Equifaz to give individuals a free credit report every year. There are three ways to get a report: 1) Visit www.annualcreditreport.com 2) Mail in a request, or 3) Call 1-877-322-8228 Credit reporting is at the heart of our lending systems and enable many of us to get credit, afford a home or get an education. Supervising this market will ensure that it works properly for consumers, lenders, and the wider economy. There is much at stake in making sure it is both fair and effective.