Consumers

The Fair Credit Reporting Act was enacted in 1970.  Back then statutory damages were $100-$1,000 per violation. In 2023 the statutory damages are $100-$1,000. The average price for a gallon of gas in 1970 was $0.36/gal in 2023 the average price for a gallon of gas is over $3.00/gal. If that doesn’t make our point, nothing will. The damages have not been updated to inflation making it not worth an attorney’s time, and even if it was, it doesn’t hurt the bureaus or furnishers at all, making the world of credit the wild west. If penalties for violations were at least adjusted for inflation, those who furnish information to the credit bureaus, and the credit bureaus would become more cautious in reporting consumer information fairly and accurately as it would become very costly for them.

Congress had the original intent with the telemarketing sales rule was to stop unsolicited sales calls past a certain time, and prohibits deceptive sales practices. However, for credit repair companies, if a client calls to schedule an appointment, the TSR applies to them. It forces the credit repair company to wait 6 months before collecting payment. Consumers who call and can’t get their questions answered will go to the next guy who will answer their questions, and take their money to the bank. Allowing reputable companies to do business like any other company will help. Besides, this portion of the TSR was put into place BEFORE the Credit Repair Organizations Act (CROA), now that CROA exists there is no need for this regulation anymore.

We know getting rid of regulations without expecting new regulations is a pipe dream. However, common sense regulation such as passing a proficiency exam, licensing, and continuing education would be the step in the right direction. Let’s face it, scammers and corruption exists in EVERY industry, however, common sense regulation would do more to protect consumers from fly-by-night companies from popping up, taking consumer money without a changed credit report to show for it.

FICO has updated their scoring models several times over the years. Yet the mortgage industry is still using the antiquated scoring system for mortgage qualification. Other credit scoring companies exist as well, yet those scoring models are not used at all for mortgage qualification. Why? Because of government regulation. This is hampering many Americans from qualifying for home ownership. The old scoring models put more weight in items such as medical collections. Typically, a consumer can expect their mortgage credit score to be 50-100 points lower than their more modern FICO or Vantage credit scores. More Americans would be homeowners today if mortgage lenders had the freedom to use modern credit scores.

Georgia is the ONLY state that prohibits credit repair. Consumers in Georgia are hurting and turn to any who are willing to break the law.  This makes the scam rate astronomically high in Georgia. We believe consumers should have access to these vital services.