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(8,244 posts)
2. Crumbs is correct.
Mon Jul 16, 2012, 12:32 AM
Jul 2012

The credit bureaus are worthless pieces of crap. They shouldn't be allowed to exist at all. Too much unaccountable power. Too much concentration of power and conflict of interest. This is way to little too late. Can you believe these criminal syndicates are actually allowed to operate as for profit entities and give money to politicians?

In the United States, 90% of credit reports provided by credit bureaus contain inaccuracies.[5] ... According to Avery, Calem, and Canner in Credit Report Accuracy and Access to Credit, "the parties that bear the costs of correcting errors or providing more timely and complete information [data furnishers and credit bureaus] may not receive much benefit from the improvement in accuracy."[8]

Goldman Sachs Buys TransUnion. What’s In It For You?
One of the major companies responsible for the nation’s credit meltdown will now control your personal credit history. Goldman Sachs Capital Partners, the private equity wing of the financial firm, has partnered with another private equity company to buy the credit reporting firm TransUnion. Collecting and reselling personal information about your borrowing and bill-paying behavior is apparently worth more than $3 billion.

For those at the top, it’s a sweet deal: one former TransUnion owner will see a 50 percent increase in return on its investment in the company after owning it for less than two years. Private equity funds selling to other private equity funds is a lucrative business.

But for consumers, the deal promises few benefits. Consider the problem of credit reporting errors: private equity companies buy firms for their potential to generate profit, and credit reporting companies like TransUnion earn the lion’s share of their profits from creditors rather than consumers— thus they have little financial incentive to conduct meaningful investigations when consumers find an error in their credit report. Instead, they rely on cheap automated dispute-resolution processes to resolve them. Nothing changes there, unless private equity pressures to keep costs down squeeze the dispute resolution process at TransUnion still more.

And the sale makes TransUnion no more likely to respond to a petition urging it to cease selling credit reports to employers on the grounds that they are unreliable and discriminatory in an employment context. Since when has Goldman Sachs listened to the Lawyers' Committee for Civil Rights or the National Council of La Raza?
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These gangster credit cartels have no business operating in America. We need to send in the FBI, SEC, and the US Marshalls and seize all documents and equipment and lock the CEOs and Boards of Directors in Guantanamo and waterboard them until they admit their crimes against the American people.

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