The FTC released a 4th interim report to Congress laying out the progress the agency has made on a national study examining the accuracy of credit reports. The FTC currently is doing a study on the accuracy of credit reporting and is directed to report that information to Congress.According to the FTC they are to conduct this study every two years starting in 2004 through 2012, with a final report in 2014.
This study will be based on three topics in the credit reporting process:
• Consumers
• National consumer reporting agencies
• Furnisher of information to the reporting agencies
There are approximately 1000 random consumers in this study that have been selected throughout the nation. These consumers will review their credit report from all three national credit bureaus with a credit expert who will point out potential errors on their reports. The study participants will be encouraged to dispute errors that could affect their credit rating. These disputes will be sent directly to Fair Isaac Corporation (FICO) for rescoring.
This study will estimate the number of consumers who will find errors and reveal the main types of errors, their frequency, and their impact on the consumer’s credit rating. This study will categorize errors by type and the seriousness of the error along with potential consumer harm.
As of 1/12/2011 the FTC stated 295 consumers had already participated in this study. The FTC stated the data collection phase should be done by October 2011. The next interim report to Congress is due on December of 2012 which will provide full analysis of the collected data.
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