FDIC Federal Register Citations

First Name: Richard
City: Brookfield
Country: United States
State or Province: WI
Postal Code: 53005
Organization Name: not applicable

Comment Info: =================

General Comment:

Ladies and Gentlemen:

I learned about these proposals on an internet news service that I monitor
occasionally, and because my wife and I, as consumers, have had personal
experience with inaccurate credit reports, and their misuse. I am sure that you
have received much carefully crafted commentary from the industry at which these
proposals are targeted, comending themselves for the substantial public service
that they provide and bemoaning the burdens to which the proposals will subject
them. I therefore thought that it was important that you receive something from
someone who has experienced the way that this arrogant, concentrated industry
behaves toward ordinary citizens.

My wife and I have on numerous occasions found inaccurate information on credit
reports concerning us, and have made extensive, unsuccessful efforts to correct
it. (Specifically, my wife has information on her credit files that relate to (1) a
supposed long-term commitment to a cellular service which she has demonstrated
was never made, and (2) bad checks written by a thief who stole her purse from
her office several years ago.) Despite our extensive correspondence with credit
reporting agencies and those who report to those agencies, no corrections have
ever been made. In fact, the general pattern that they follow is to ignore any
written communications and send form letters threatening all sorts of adverse
consequences if the "debts" alleged are not paid. Based on those experiences, I
have concluded that the method of operation of the industry as a whole is to use
the threat of bad credit reports (regardless of their merits) to get consumers to pay
bills (whether they owe them or not).

While I have not studied your proposals to determine whether they address all of
the nefarious means by which this industry harasses consumers, it is clear to me
that something needs to be done to reign them in. I therefore applaud your efforts
to do anything that may be effective. However, my belief is that the only effective
solution will be to impose penalties that are disproportionately large compared to
the individual harm inflicted, on all credit reporting agencies and those who provide
them information should they fail to correct errors or at least comply with current
law requiring the inclusion of consumer explanations in credit reports. Current
remedial provisions are inadequate because the cost and difficulty of resorting to
litigation are prohibitive.