Court Backs Full Checks On Credit Complaints
"... Three judges on the 4th U.S. Circuit Court of Appeals in Richmond unanimously found that MBNA, the giant Delaware credit card issuer, failed to conduct a reasonable investigation of a consumer's records because it conducted only a cursory review of its files.
The case involved Linda Johnson, owner of a hair salon in Newport News, who was unable to get a favorable mortgage rate after she found that her husband's overdue credit card account at MBNA had marred her clean credit file.
The decision goes to the heart of a continuing controversy about the growing number of errors on credit reports -- and how earnestly lenders have to check their files to correct mistakes. For many years, creditors have only verified that the information on their records matched the data at the three national credit bureaus; typically, they do not check original documents to make sure the information was correct in the first place.
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Unfortunately, below the article are the advertisements for the INCOMPLETE credit reports sold at TrueCredit (TU) and Fair Isaac.
Posted by Christine at February 13, 2004 05:37 PM