Released: June 20, 2007

FTC, Fed criticized over credit reports

Source: Xiyun Yang, Washington Post (Free Registration)

Lawmakers accused federal regulators yesterday of moving too slowly to implement rules to help consumers fix errors on their credit reports.

The Federal Trade Commission and the Federal Reserve were targeted in a House hearing to examine how errors occur on credit reports and how to assist consumers in correcting them. Congress passed legislation in 2003 that protected consumers against credit errors, but neither has been fully implemented by the six regulatory agencies that cooperate to translate laws into industry standards.

“So many years to accomplish a congressional task is unacceptable and ridiculous,” Rep. Carolyn B. Maloney (D-N.Y.) said during the House Financial Services Committee hearing. “The problem of Fed inaction is a consistent theme.”

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