Credit Bureau Changes Coming

Changes required from the NY Attorney General’s settlement with the bureaus

This week an agreement was finally reached between the NY Attorney General and the Credit Bureaus. The good news is that there are changes that must be implemented at the bureaus and banks which will positively affect consumers. Here are a couple of the key changes coming:

  • Bureau disputes are automated (scanned disputes are interpreted by software) – bureau employees will now be required to personally inspect the disputes; they will likely pass some of this burden to the banks
  • There will now be a 6-month waiting period before medical debts can be reported
The bad news? The final phase of the changes are not scheduled to be completed until 2018. Past history tells us that ANY changes in credit reporting take a long time to be implemented. As an example, the FICO algorithm versions still being used for nearly all mortgage decisions today are ten years old and quite outdated.”The credit report system in America suffers from inaccuracy and often outright injustice,” Schneiderman [NY Attorney General] said during a Monday press conference. “The need for reform was overwhelmingly clear. This is going to cost [credit bureaus] a lot of money.”

To read more about the settlement and changes coming, Read this article.