It is just AMAZING that they're finally picking up on that. I got to send Mr. Sarbanes my 11/02 Complaint about Cap One with the Federal Reserve Bank of Richmond.
I'd really like to know why the FRB General Counsel and VP James McAfee never responded, could there be financial incentives NOT to investigate as in the case of Providian's Thompson?
Maybe I'll find out, Mr. McAfee should have received my complaint this week, as he is one of my named defendants.
U.S. senators question credit reporting practices
Tue July 29, 2003 06:55 PM ET
WASHINGTON, July 29 (Reuters) - A senior Democratic senator said on Tuesday he was worried that U.S. credit reporting practices might be making some consumers appear to have "maxed out" their available credit lines when in fact they have not.
Maryland's Sen. Paul Sarbanes said testimony at a Senate Banking Committee hearing made him concerned that some consumers might be getting lower credit ratings than they deserve because of incomplete information provided about them to the credit bureaus who write up the credit reports.
In an exchange with Sarbanes, the representative of one of the top 10 largest credit card issuers, Capital One Financial Corporation, said his company did not report a consumers' total total credit line to credit bureaus, but instead the amount outstanding on credit card revolving accounts.
But Sarbanes said a credit bureau could assume the highest amount that had been charged on a credit card in the past was the total amount of credit available to that consumer -- even if it was actually far below the real credit limit.
"That could artificially depress a consumers' credit score, make it appear they have maxed out or are close to maxing out when in fact that is not the case," Sarbanes, the ranking Democrat on the Senate Banking Committee, said.
..."
I don't know WHY he says "could artificially depress a consumers' credit score" -- it's a mathematically proven fact.
Posted by Christine at August 22, 2003 07:47 PM