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The companies that determine Americans' credit scores are about to come under government oversight for the first time.
The Consumer Financial Protection Bureau said Monday that it will start supervising the 30 largest firms that make up 94 percent of the industry. That includes the three big credit reporting Firms: Equifax, Experian and TransUnion.
In remarks prepared for a speech Monday, Richard Cordray, the government agency's director, said that scorekeeping by credit bureaus plays such a large role in Americans' financial lives, it requires scrutiny.
The CFPB said its oversight may include on-sight examinations, and that it may require credit bureaus to file reports.
"It's a wonderful thing for the American public," said Pamela Banks, the senior policy counsel for Consumers Union, the policy arm of Consumer Reports. "Now there's somebody on their side." Banks said she expects that when people dispute details on their credit reports, credit bureaus will now act more quickly to fix any problems. "They won't want the CFPB breathing down their necks," she said.
The announcement Monday wasn't a total surprise, according to industry observers, because the CFPB had hinted earlier this year that it was considering supervising the industry.
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