The Federal Trade Commission has issued a warning to businesses and individuals after the election, saying it has no choice but to warn them about a new system for managing credit scores.
The bureau says it has found that some businesses and consumers are reporting that their credit reports have been flagged as “unreliable” or “invalid” and the federal government has put forward a plan to fix them.
“We have heard from businesses and other consumers who are concerned about these new reporting requirements, particularly the use of credit scores as a way to verify claims, or whether they’re correct at all,” says FTC Chairwoman Edith Ramirez.
Some consumers have reported their credit scores being flagged as being “unable to be verified.” “
Many of these consumer complaints have come from individuals, and they’re raising legitimate concerns.”
Some consumers have reported their credit scores being flagged as being “unable to be verified.”
The FTC says its website is the first place to find out about these changes and has provided an overview of the new reporting system, which is currently in development.
“While this is not the final step, it does mean that businesses are not protected from being impacted,” says the agency’s press release.
“For more information on the FTC’s credit reporting changes, visit the FTC website.
Consumers can also contact the FTC at 1-877-FTC-HELP (1-877) FTC-2-6397 or visit their website at www.ftc.gov/consumerhelp.”
The U.S. Consumer Financial Protection Bureau is also warning consumers to be aware of a new credit scoring system it says is being developed by the Federal Trade Commissions and the U.K. Financial Conduct Authority.
The new system is being designed to prevent financial fraud, the bureau says.
“With the potential for widespread use of these new scoring systems, consumers should be aware that their financial information is subject to the same consumer protections as other information about their financial situation,” the bureau said in a press release Friday.
The U, S. Consumer Product Safety Commission has also issued a statement urging consumers to check their credit report if they think they have been charged more than $10.99 in fees.
“As we enter the final stages of the election season, we urge you to review your credit reports to determine if any charges are inaccurate or misleading,” says Christine DeFaria, senior vice president for consumer protection at the CFPB.
“If any such charges are found to be inaccurate or not true, consumers may be charged fees that exceed the fair market value of their items and services.”
A spokesperson for the consumer protection bureau says the bureau has no further information about the new system.
“Consumer reporting is not a way for the Federal Government to determine whether an individual is a risk to themselves or others,” says Jessica Rich, a spokesperson for CFPBs Office of Consumer Engagement.
“Consumers are responsible for maintaining the integrity of their credit file.
When they make a report, they should be responsible for checking to make sure their information matches what is on the report.”