Lawsuit Claims Bureaus? Practice Lowers Credit Score

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00019192-lawsuit-claims-bureaus-practice-lowers-cr/

A South Carolina consumer has filed class-action lawsuits against the three national credit bureaus, alleging that they allow a practice that lowers millions of individuals? credit scores.

According to a story running in the Columbus Dispatch, the suit alleges that, under the federal Fair Credit Reporting Act, the national bureaus ? Equifax, Experian and TransUnion ? are required to follow “reasonable procedures to assume maximum possible accuracy of information in consumer (credit) reports.”

However, each bureau allows Capital One to withhold the credit limits on its customers? card accounts, knowing that such omissions frequently lower credit scores. available credit. The higher the usage of credit relative to the limit, the lower the score.

You can read more about this story at Lawsuit claims bureaus? practice lowers credit score.