With the Consumer Financial Protection Bureau (CFPB) set to begin regulating
the credit reporting industry Sept. 30, Malcolm Teasdale, author,
commentator and host of "Malcolm Out Loud,"
thinks it is an attempt to free up money and increase consumer
spending for an economy botched by the government. "Richard
Cordray, the CFPB director, he's quoted as saying, 'Score-keeping
by credit bureaus plays such a large role in Americans' financial
lives, [and] it requires scrutiny,'" Teasdale notes. "My question
is how is it the federal government is going to provide the
scrutiny when they can't scrutinize their own financial means?"
As of this
summer, Moody's and S&P had negative outlooks for the U.S.
economy, while Fitch's outlook was stable. Credit ratings from all
three varied from Aaa to AA-plus. "Here's what I sum up: The U.S.
government, who is kind of like you're loudmouth Uncle Sam, who
never tells the truth, borrows money from the family, has a credit
score south of his own IQ, is now managing our credit reports," the
commentator states. He adds that the private sector already
features companies that consumers can pay to monitor their credit,
not to mention help correct any unwarranted penalties.
HSH.com, the nation's largest
publisher of mortgage and consumer loan information, is also
skeptical about the impending oversight. It determines that "the
new regulation produced by the government is unlikely to create any
consumer product which is clearer than the credit score information
now given out when one applies for a mortgage."