Credit bureau errors big people problems

CREDIT BUREAU ERRORS-BIG PEOPLE

PROBLEMS

Aulia Puspa G - 11/5/2013


Credit BureauA credit bureau is a giant record keeper that stores information on almost every adult in the United States. Information includes address, employment, and most importantly, payment history.


Assess the business impact of credit bereaus’ data quality

problems for the credit bereaus, for lenders, for

individuals


For Credit BereausCredit bereaus are responsible for credit report errors.

They have to dispute with customer’s complain.

They have to spend more money for data processing center to send customers protests and evidences.


For LendersLenders use information to assess a person's credit worthiness.

Making wrong judgement in credit approval.

Losing potential customers.


For Individuals

Credit denial.Job denial.


Are any ethical issues raised by credit bereaus’ data quality problems?


Validity and Reliability: Imperfect data leads to imperfect matches.

Privacy: credit bereaus collect and sell customer’s personal information.

Accessibility: The banks have no obligation to investigate the dispute when the consumer tries to contact the lender that made the error on their own.

Integrity: The summaries of complaint by the third party-contractor are often too brieft


Analyze the management, organization, and technology factors responsible for credit

bereaus’ data quality problems


ManagementThe credit bureaus collect personal information and financial data from a variety of sources.

The data are aggregated and stored in massive databases maintained by the credit bureaus.

Lack of information management.


OrganizationLack of the good men in organization.

Lack of coordination between each organizations.


TechnologyThe credit bureaus use an automated e-OSCAR (Electronic Online Solution for Complete and Accurate Reporting) system to forward consumer disputes to lenders for verification.


What can be done to solve these problems?


Credit Bereaus

Data quality auditData cleansing


Lenders

Checking carefully the credit application.


CustomersProviding complete and accurate information on a credit application.

Consistent monitoring of the credit report.

Credit bureau errors big people problems

Business

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