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Well with -- -- -- the consumer financial protection bureau is rolling out new rules to give consumers better insights into their financial health.
Now for instance if you apply for a loan he rejected litters are now required to give you your credit score and an explanation of why you were turned around.
In if you happen to get -- but let's say it's at a higher rate in the lower rate again lenders must give me your credit score and explain their decision.
For more on these new rules were joined exclusively by mark -- here is the CEO Mike the system is widely used to us -- credit.
Mark -- -- calling this a victory for consumers.
Why well I think it is because one of the objectives of the -- if he'd be -- and it's right that they don't have a permanent director -- they've been very busy at they've been standing up your position one of the things they've been focusing on is ensuring that consumers have transparency and better understanding what goes on the banking industry.
And too much of what happens -- -- consumer lending has been sort of opaque to consumers so as of today.
One of the aspects that Dodd-Frank bill sponsored by senator Udall is that banks really have to give kind new information to consumers in the two circumstances you talk about if they turn -- down for long.
Or -- -- credit and under less than most favorable terms.
And and are that those cases they have this enjoy notices -- -- an adverse action notice or -- expression -- but it explains an English.
What decision they reached -- why.
And quite typically that will include a credit -- usually -- Michael credit score there about ten billion fight for credit scores used every year.
That's about 90% of all the lending decisions -- -- scores and that's the basis for which most banks make these decisions so it's your turn down or denied the best rate.
They'll say you know we were looking for this kind of level but you only -- here.
And that's the basis partisans.
You know mark one thing I was surprised to learn in my research ahead -- this in -- -- from the National Bureau of Economic Research is actually only a third of Americans know what their credit score as I have to admit the last time I checked my credit score.
Was when I was getting a mortgage three years ago.
The easing -- -- that that consumer protection bureau is trying to administered does not help in the way of education of people don't know that they have a problem.
How can date even begin to have helped them well.
But if you aircrack that there out of life you give your score until they've made these kinds of decisions but a consumer can get to scored any time -- -- my -- dot -- we have two kinds of things -- -- have to -- themselves and we have lots of educational tools explaining.
What the scores are how -- constructed fact that they range from 300 on the loading a fifty and I -- -- -- -- com is one place consumers can go.
But there's another very important site that's -- put together as a result of this work around the Dodd-Frank bill.
It's called score info dot org.
And it explains how these new laws work -- these consumers education about how to read these -- letters to be getting.
What the rights responsibilities are where they can go to appeal if they don't like the decision so scorn for dot org.
And -- Kodak comp two places for consumers get kind of education and -- Is there are any additional cost anywhere along the food chain for this additional transparency because everything at the -- today ends up costing something transparency.
And the lack of Friday whenever it is access breaking down walls ends up costing something well paying.
For the banks that we work with every -- of course are concerned about the overall cost of regulation but in this particular case is no incremental cost because these -- scores of the banks are already purchasing -- -- -- getting from -- -- from the credit bureaus.
And all they're doing under this new rule is turning around and showing that -- score to consumers they've been doing that by the way all along the mortgage industry that's in the law for some time.
What's happening now is have to do the same kind of disclosure in case of credit cards in case of mortgages and and student loans -- sector.
But the CF PP that though there are critics out there against this and I twenty you're gonna be no one -- image we want to me ask you about the fact -- be no more free Internet banking but the there -- other things no more free checking -- more free ATM reimbursements.
No more cash back -- -- type of things in other words a lot of people are saying that this is actually a banking tax.
All consumers and -- gonna find out the hard way.
The that particular rules that are rolling out today don't actually affect the profitability but it is true that some of the legislation has affected profitability for the card act to sort of taken out some of the profits of the credit card sector.
The debit interchange rules a recent took effect.
And so what is happening is banks are looking for new ways of holding on to their customers and making revenue is making profits certain fees may go up over time -- I think we've got -- -- -- -- we can't let you go because -- -- -- -- -- how they get their make their fight those scores better pay your bills on time OK don't take out credit that you don't need.
Have multiple types of credit if you're a country just -- credit cards but you don't also have a student loan that's not a good thing.
Have long standing relationships -- -- you know that the long we've been doing this is an organization paying your bills responsibly the better it is for your credit score.
And can you improve our current executive -- -- -- -- let's look at.
-- -- I touch her systems alarm will go up not gonna come.
We're gonna -- and I'm Tara thanks -- Elaine thank you very.
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