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The Credit Pros Release New Data from CFPB Report
A new report from Consumer Financial Protection Bureau (CFPB) exposes a growing problem in America, especially among minority groups.
By: The Credit Pros
Jason Kaplan, Esq., President of The Credit Pros comments, “The term ‘credit invisible’ might seem unfamiliar to some, but it describes a situation where a consumer either has no credit at all or has very little credit.”
The CFPB report goes on to say that one in every ten adults in the U.S. has no credit history with any nationwide consumer reporting agency, impairing their ability to borrow for college or buy a home. The report also finds that these problems are much more concentrated in low-income areas and among minorities. According to the data, a significant number of those 26 million “credit invisible” Americans belong to a minority group.
CFPB Director Richard Cordray told reporters that, “When consumers do not have a credit report, or have too little information to have a credit score, the impact on their lives can be profound.”
These effects can include not being able to buy a house, a car, or major appliances. Though these are the most obvious, there is a long list of other negative impacts, such as not being able to qualify for an apartment lease or get credit of any kind. Others include the inability to get utility and cable services without making a huge deposit.
The bureau found that often the differences among credit histories become apparent when consumers enter early adulthood and these problems persist throughout their lives. In some instances, this can be attributed to the fact that minorities may not have good English skills and may not be well educated. This can leave the door open for unscrupulous lenders to come in and take advantage of this group by charging exorbitant interest rates.
Jason Kaplan, Esq. from The Credit Pros comments on this, “We see this every day. Immigrants come to America hoping for a better life for their families only to be taken advantage of by unprincipled loan companies. Now instead of these minority groups being invisible in the credit world, their credit is ruined because they aren’t able to make loan payments on time. At The Credit Pros, one of our missions is to educate consumers about unscrupulous loan practices so they don’t fall into this type of trap.”
To read the entire study, please visit: http://www.consumerfinance.gov/
About The Credit Pros
The Credit Pros works with consumers to help them identify problems on their credit report and get those repaired. They offer a wide range of services from one-on-one consultation to Cease and Desist Letters to Creditors. The company has a strong background in credit reporting and has helped thousands of consumers restore their good credit with disputes, debt validation letters to creditors and Goodwill letters to creditors. They are registered and bonded and have monthly plans, as well as per-deletion plans.
The Credit Pros