Thought Leadership

The Challenges of Consumer Credit Reporting

January 14, 2025 Version: 4

Credit scores play a crucial role in shaping financial opportunities in the U.S., but consumers are often left in the dark about how they are calculated. As complaints about inaccurate credit reports rise, it is evident that the system needs reform.

Our latest paper by Marshall Lux, Rohan Mistry, and Jack Zoltak explores the growing challenges of credit reporting, including:

  • Inaccurate information and misuse of reports
  • The lack of transparency in credit scoring
  • The need for better dispute resolution

They recommend key reforms such as:

  • Simplifying and standardizing the dispute process
  • Enhancing consumer education and transparency
  • Expanding access to alternative data
  • Strengthening consumer rights

By addressing these issues, a fairer, more accessible financial system can be created for all Americans.

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Read the full paper