Obama's Credit Report Crackdown Based On Myth Of 'Inaccurate' Data

[Geee]

Investors Business Daily:

Regulation: The administration's unprecedented move to police credit bureaus for "fairness" is based on a cock-and-bull story that consumer credit profiles are riddled with errors.

Early this week, President Obama's powerful new consumer watchdog agency announced it will regulate for the first time the $7 billion credit reporting industry. It claims there's a crisis of confidence in consumer credit reports.

"We are here to correct what is not going well," Consumer Financial Protection Bureau chief Richard Cordray said Monday at a Detroit credit reporting hearing. "And we are here to see that this market is made to work better for those who are affected the most."

Cordray claimed "inaccurate" credit reports and scores may be "unfairly blocking" some from the credit they deserve. A community organizer at the hearing claimed as much as 40% of reports may be inaccurate.

Once again, the administration is manufacturing a crisis to justify a bigger government hand in the market and exercise a radical anti-business agenda.

Recent studies have found that, quite the contrary, U.S. credit reports are highly accurate. In fact, they are the model of the world.

The most comprehensive study, conducted last year by the Policy and Economic Research Council, found that only 0.5% of the data collected and maintained by the Big Three reporting agencies — Equifax, Experian and TransUnion — contained material errors that adversely affected consumers' credit scores.

The study, which oversampled blacks and Latinos, found no higher rates of error between the aggregate data and the data by race.

[pollyannaish]

If Obama really wants to fix credit scores, he needs to do something to allow main street to flourish again. It's not mistakes that are causing problems...its the lack of jobs.