Under the theory that a person is greater than the sum of his/her parts, it seems to me that there is trouble with credit bureaus and the TREMENDOUS impact they have on the lives of ordinary people. I have relatives whose lives are essentially ruined because of a single number. In my opinion, we need an overhaul of the credit reporting system.
As I understand it, credit bureaus issue a single number, accompanied by a list of creditors, with information about how an individual paid (or didn't pay) creditors. Based upon this myopic view of the person, he/she can have a history of 15 years of superb credit, but through circumstances beyond their control (loss of job, loss of primary earner, income reduction, etc.), suddenly have a low credit score. This basically eliminates their opportunity to consolidate debt in order to reduce monthly payments to an affordable level; one they may be able to meet.
These agencies have outlandish power and, as far as I know, are not governed by anyone. Also, they clearly operate under the theory that you are guilty until proven innocent. Even in cases where they are wrong, they answer to no one. Of course you can appeal your case to them. Honestly, how objective is that??!!
Is it time for a change? It seems that we need an agency, outside the control of the credit reporting agencies, that considers the whole person, the entire circumstance, and the history that brought about their circumstance. I believe we need to somehow wrest the power from these clandestine agencies, make the process more transparent, and establish oversight for redress. No human being is merely the embodiment of a single number.
More later..... please comment.
