The Score

In 2008 we witnessed the start of a global recession possibly worse than the Great Economic Depression of the 1930’s. It is interesting to note both depressions originated in the United States and spread internationally. The 1929 depression was due to, what has been described as, irresponsible investment in a bullish stock market. The 2008 depression was due to people taking advantage of cheap credit irresponsibly offered by banks. The impact of the magnitude of these depressions fostered on individuals’ lives will take years to reset them back to what they were.
The credit reporting industry has grown into four major national agencies with numerous sub-corporations, along with a couple thousand smaller local agencies. In addition there are thousands more companies engaged in some sort of consumer data compiling and reporting in just about every industry; everything from the prescriptions we take, the groceries we buy down to the type of toothpaste we bought and when, to the car we drive and our driving record, and the magazines we read. It is all recorded someplace and it says something about who we are. There is no aspect of our lives some organization is not busily examining and compiling data about us and selling it in some form. For example, do you really think manufacturers need all the information they request you to put on their warranty cards?
The laws regulating data collection are primarily aimed at the big national credit reporting agencies. However, there are many specialty companies doing the same thing as the national agencies; collecting personal data However, it is little known few of these companies are governed by the laws that were written with respect to the four national consumer reporting agencies. These companies operate virtually unchecked. If this is not scary enough for you, computer technology is now enabling the varied data collectors the ability to share the data they specialize in collecting. They can cross correlate data to build an even better electronic representation of who you are.
The most important thing you need to know about the whole system of consumer reporting and the selling of data products is that there are NO LAWS that REQUIRE DATA FURNISHERS TO REPORT ANYTHING to any type of consumer reporting agency. Even the courts do not have to report judgments. Information furnishers report information about you voluntarily. Your bank may tell you if you don’t pay on time the law requires them to report this to some agency, but this is total lie; it is pure intimidation.
What can you do to protect yourself? What hope do you have to save or salvage the assets you have earned over your lifetime? The answer is, learn how to defend yourself. Just like taking a martial arts self-defense class to learn how to physically defend yourself, there are things you can learn do to defend yourself against your Score being downgraded. The Score is the core of the system and you need to learn how to protect your credit score.
Most important, if you learn nothing else from this book, you need to know none of the agencies performing credit collecting and reporting are in any way connected with any government organizations as the term “agency” or “bureau” might tend to imply. None of the agencies have any legal policing authority. Banks, police or the government do not run any of the agencies. You should not be any more intimidated by the agencies then you are by Macy’s.