One of the studies conducted by the three major credit bureaus in the country has revealed that there is less than a percent chance of credit reports having errors that can have an impact on the credit score of the customer.
This particular study was conducted by the Policy and Economic Research Council based in Durham, North Carolina. The head of this center, Michael Turner, said that as a part of the study a large number of credit reports were analyzed and it was found that it is extremely rare that the credit reports have errors which can lead to an impact on the credit worthiness of the customer.
The council also said that, as a part of this study, around 2,338 people were surveyed in 2010 between February and May and their credit reports were studied. University of Pennsylvania’s Wharton School’s professor of finance, David Musto, was invited by the council that conducted the study to review the process of examination. David said that the study was well executed and the sample size was large enough to be treated as the representative of the whole.
The three leaders in the credit reporting sector of the United States are Atlanta based Equifax Inc, Experian Plc based in Dublin and TransUnion LLC based in Chicago. The overall jurisdiction of the consumer credit firms will fall come under the Consumer Financial Protection Bureau from July 21st when it comes into being. One of the laws crafted while creating this particular bureau states that by the time it comes into effect it should have produced a study that outlines the differences between the credit reports that creditors avail and the ones that are available to consumers for them to keep a check.
United States Public Interest Group’s consumer program’s director, Ed Mierzwinski, in an interview said that the credit report errors may have been underestimated by the industry considering the large number of customers who were happy with the process by which the credit bureaus resolved their disputes. He also said that most of the other reports have suggested the rate of credit report errors to be around 25%. Mierzwinski went on to say that they were eagerly waiting for the access to the reports of the study conducted by the council.
The study by the council reported that only 0.93% of the consumers who raised a dispute had the credit score increase by over 25 points due to the error.
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