In a shocking new study conducted by the Consumer Financial Protection Bureau (America’s cop for consumers), it was discovered that the credit score you may have been banking on to get the lowest rate on your mortgage or credit card is NOT the same one that lenders see. In fact, according to the CFPB, 1 out of 5 consumers receiving a meaningfully different score than the one the lender gets.
The study compared credit scores sold to creditors (bank, credit card, car dealer) to those sold to consumers. Approximately 200,000 credit files were analyzed from Trans Union, Experian and Equifax to determine the potential problems consumers would have resulting from the differences in scores. It was determined that:
1. One of out of 5 consumers receives a different score that the creditor: this meaningful difference means that the consumer would likely qualify for different (worse) credit offers.
2. Score discrepancies may cause the consumer harm: consumers may pursue loans they are not qualified for, wasting time and effort. Worse yet, consumers might end up accepting offers that are worse than they could otherwise get.
3. Consumers are unlikely to know about score discrepancies: consumers get the short end of the stick because they don’t even know what score the lender is receiving to make a lending decision.
To protect yourself, the CFPB advises you to review your credit files for inaccuracies (over 70% have them) from all 3 credit reporting bureaus.
You can have Michigan Consumer Credit Lawyers on your side to file disputes and get your credit report errors fixed. We represent you for free and can clean your report of all errors, saving you money, time and hassle.
You should know that the Fair Credit Reporting Act is a federal law that allows consumers to hire lawyers for free. These lawsuits cost you nothing. The attorneys’ fees and costs are shifted, by law, to the Defendant to pay. The consumer walks away with a clean credit report.
If you have items on your credit report that are incorrect, call or email Attorney Gary Nitzkin for a free consultation at (888) 293-2882. For more information about your rights as a consumer, visit our website at www.micreditlawyer.com, which is filled with informative videos and advice to help consumers. Michigan Consumer Credit Lawyers is here for you. Call us today!