As credit issues and fraud seem to be on the rise in recent years, people are paying closer attention to their credit score and credit monitoring. As a direct result, the three major credit monitoring companies, Equifax, Experian, and TransUnion, are now making major changes to increase data monitoring in 31 states.
The settlement also requires the companies to pay $6 million to these states within a 3 year period.
The changes come with a major settlement the companies have come to with the states. It requires major business practice changes, more response to concerns with credit mistakes, and much more. further changes include the following: limited direct consumer marketing, increased education information, further data inquiry from companies who provide certain data, compliance with state laws and federal laws, and customer protection regarding disputes in credit reports.
Furthermore, it changes the rules on medical debt. By the new rules, agencies cannot post medical debt on a report until 180 days after the account is reported. This allows consumers time to make payments and talk to insurance companies about the debts.
Along with the increase in breaches and hacking incidences, consumers are worried about their information safety, and how people are fraudulently using it to get gain wherein the real consumer faces the devastating effects of the hackers' deeds. Even small reporting changes could have a major affect.
Any changes in credit scores can have immediate effects in terms of being able to use credit for homes, loans, and much more. Therefore these crucial changes are meant to make things easier and safer for consumers.
They allow increased protection, time to make change, and better investigation from the companies.