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SmartCredit.com Consumer Education President John Ulzheimer on efforts to revamp the credit scoring system.
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Occupy Wall Street has a big problem with the way credit scoring is handled in this country they want the system revamped.
-- like what Suzie Orman is trying to do with their prepaid debit cards John Alzheimer is the president.
Reputation for Smart credit dot com and yes sir I saw you shaking your head bear.
-- a lot of complaints with credit scoring in this country -- Occupy Wall Street got everybody's happy with it.
But I I'm a little confused about the way they're going about it.
And the main misunderstanding seems to be Occupy Wall Street wants to make it a function the government which to me.
Is a laughable.
Not only shows up a pretty fundamental lack of understanding about the system more -- a product that is a credit score.
But also exactly who is in the business -- credit scoring you have a variety of companies including all part of the credit reporting agencies countless small boutique credit modeling companies.
Who build credit scoring systems.
-- I think that there under the impression that there really is just a credit score -- that that one credit score could easily be manager at a government level.
Vs the entire -- -- -- credit scoring systems that are currently in commercial fleet commercial -- -- Lenders insurance companies utility companies and are employing thousands and thousands of people and it would although I like.
So that if the government decided to take -- album.
Well -- and beyond that I mean.
If this is the same government gave us a lender this is the same government the ran up a fifteen trillion dollar tab and you want Ben to run something important to your life like credit scoring -- it ain't.
Not an end and -- -- all fairness to the federal government they're not saying.
We wanted to know -- credits going to conclude the Occupy Wall Street I don't see it wouldn't they come back I don't.
I thought they did say I I don't know I can't look at I had I'd like.
I know much about as much about Occupy Wall Street bother then that's completely intense that's pretty much all I know about them and start jumping and in my backyard -- are talking -- credits foreign.
That's when I start to get kind of jumped up about this -- a problem isn't that the things they're asking for our -- Forty well established for decades in some cases or just plain out.
Stupid.
Are well let's work through some of these.
They suggest that the Consumer Financial Protection Bureau actually take over credit scoring.
As we Richard -- during a highly controversy all the organization is highly controversy all -- supposed to be watchdogs not layers what do you make of this.
While this is essentially asking a government agency to assess the risk of lenders -- business with consumers.
That's our credit scoring systems are used for to assess consumer credit rest.
If you're can you imagine getting a letter in the mail saying -- -- been denied credit.
Because I'm CF TB says that your too much Democrat or ask the other anti government you can't make this stuff -- I mean this is that -- is come needed.
To even suggest such a thing.
I agree Uncle Sam says you can't have that -- Right -- and it's crazy all right so they -- score should not be merged with your spouse what do you make of that.
Well okay -- My four and a half year old knows that credit scores are not maintain that -- household -- or maintain that the individual consumer -- So they're essentially saying we would likely to eliminate uniforms they don't exist what they're asking for that even a problem no no one has ever complained about this except for amendment S1 letter to the CF TB.
You could Gerry well let's have a credit score and I John Alzheimer have a credit -- and there's no possible way right they could become merge.
Even if we were married or whatever okay there's basically should be up protocol for disputing negative and -- Be thinking that already right.
Yeah in 1970.
When I was to look up.
He added the fair credit reporting act was made it is a public law.
And since then there has banned some protocol -- it's become more and more regimented and -- and and and clearly defined over time.
But they're essentially asking for something that has been in place and as well established.
The lenders -- the process the credit reporting agencies not a process I would assume the federal government has a process since since the CATV in the Federal Trade Commission the ones -- Maintain enforcement accidents for not apply the following -- properly but it's been around for some forty years.
Staring at what what is the -- also disagree with the credit score model should be public.
Full disclosure here used to work in the industry so you know that industry inside -- -- you city's model should not be made public.
Because it would only help the people in the industry the public can't read those models.
But goodness John shouldn't we have a better idea of what it takes to bring -- score up in cleared.
English this is so critical to individual folks' lives you know and whether they can -- the car -- -- but the kids through college shouldn't we have a clear idea better idea.
I don't disagree with you at all what what you're suggesting it's very different than saying we need to publicize all credit -- models.
-- credit scoring model in print and mind you I used to how the exhaust I don't scorer in print in a fall over on my desk when -- to work for them it was about that sick.
And it was heavily -- code.
You just following that on the Internet does not due to consumer one bit of good it to simply doesn't not.
Don't get me wrong yes we should now what kind of actions we need to be able to take.
In order to -- -- maintain a good score -- -- to get a -- soaring -- like Jerry.
Don't Google how to like get a better shorter gonna find dozens and -- -- reputable sources that will tell me.
Well thank you for that.
And and listen -- is very disappointed with your answers -- we will let you know I'll just above one and a lot of things about bank up up up up.
Shot a pleasure as always.
