People Come First At Our Consumer Rights Law Firm

Credit Reporting Agencies Other Than the Big Three Required to Follow the FCRA

On Behalf of | Sep 3, 2013 | Consumer Protection

In the wake of repairing the crashing housing market, the next
financial crisis seems to be focused on automobile
.  While several years ago the major automobile
corporations were at great risk of closing their doors, the
industry giants have made a substantial comeback with the
assistance of our government.  The main reason for this
industry flourishing, the rapid growth of subprime auto loans
available to consumers in the market to purchase vehicles they
probably cannot afford.    Subprime auto loans are
loans given to higher risk consumers, which naturally will have a
higher interest rate on the borrowed money.

Consumers buying into these subprime vehicle loans are at great
risk as the repayment terms of the loans often exceed the life of
the vehicle leaving the consumer owing more money on the vehicle
that it is actually worth at a time when the vehicle is hardly
functioning.  In an effort to qualify a consumer with a less
than stellar credit history, auto lenders are turning away from
using credit reports from the three major credit reporting
agencies, Equifax, Experian and Trans Union and instead using
alternative consumer credit reports
.  These alternate
means are private databases used by lenders which I have discussed
in detail in a
previous blog, that report information such utility bill
repayment history, cellular phone bills and lease

This type of public data is introducing a new era of credit
reporting.  With computers tracking consumers every move,
widespread information on consumers has become more
available.  Luckily for consumers, the Fair Credit Reporting
Act (“FCRA”), the law enacted to protect consumers from unfair
treatment by the credit reporting agencies and furnishers of
information, will police the conduct of these databases as

Just as a consumer would dispute inaccurate information with the

credit reporting agencies, consumers have the same right to dispute
information inaccurately reported
by these databases.  If
you are not approved for an automobile loan, the lender must
provide you with a copy of the reasons you were denied.  You
are entitled to a copy of the report the lender used to base its
decision at your request, and you must dispute in writing the
inaccurate information reported by these databases.

If you are having issues being approved for a loan and believe
you have inaccurate information on your credit report or in a
database reporting your payment history, contact SmithMarco P.C.
for a free case review.