Sorry about the last few days of blog silence. I haven't been feeling very inspired lately. However, Kevin Drum makes a good point about credit reporting.
The problem with credit reports is that they're strictly under the control of one side of the credit transaction: businesses. If a business requests a report, they get it, no questions asked. If a business reports a problem, it goes on the report, no questions asked. The consumer never knows any of this is happening, and that's the way the credit reporting companies like it.This needs to stop. If a business requests a report, the consumer should be notified — by email, phone, or in writing — and the report should go out only if the consumer authorizes it. If a nonroutine entry is added to a credit report, the consumer should be notified so that she can object immediately if she thinks a mistake has been made. Consumers should be full partners in the creation of credit reports, and any changes or uses of credit reports should be fully transparent to the consumer involved.
These aren't just pieces of paper anymore. Credit reports are minutely detailed resumes of your entire life, and credit reporting companies shouldn't be allowed to arrogantly treat your life as if it's their sole property. After all, an improper use of your credit report can do you tremendous damage. It should fundamentally be considered joint property, as much yours as the credit reporting company's.
