Credit Bureaus Sued Over Practices That Lower Credit Scores

Jim at GuardMyCreditFile exposes this questionable practice by the consumer credit reporting companies.

Attorneys for William A. Harris Sr., a resident of South Carolina, have filed a class action law suit against the nation’s three large credit reporting agencies; Experian, Trans Union and Equifax. Harris is claiming that these three companies are violating the Fair Credit Reporting Act (FCRA), which requires them to establish reasonable business procedures to insure that the credit reports that they provide are accurate. Harris’s suit says that because the CRAs allow creditors to omit the credit limit on consumer accounts, they are artificially holding down consumer credit scores, bilking American’s out of billions of dollars each year in the form of higher interest rates.