Credit Data and Scoring

Chapter Six

Historic complaints about credit accuracy

Abstract

Errors on credit reports were reported in two studies reviewed in this chapter, one by an organization called PERC in 2011, which carries out research in cooperation with the CRAs. The other is by a regulator, the Federal Trade Commission, in 2013. PERC found that only 0.9% of credit reports had errors that would change credit scores by as much as 25 points. The FTC found numerous small problems but only 2% of credit reports with errors that would cause a 25-point swing in the credit score. The method for identifying errors was to enlist individuals who would review their credit reports and object if they detected an error. A third paper is also reviewed, which points out ...