More than 26 million consumers are effectively “credit invisible” because they have no credit record and another 19 million are “unscored” because they have an insufficient or stale credit history, according to a report released Tuesday by the Consumer Financial Protection Bureau.
The study was part of the agency’s ongoing efforts to examine the flaws in the credit reporting industry, but it was unclear how the new information will be used by the CFPB.
“What we’re trying to do in this report, and other work that we’re doing, is better understand the scope of credit reporting. And understand how it’s affecting consumers, which consumers it’s working well for, and which perhaps it may not be working as well for,” said Ken Brevoort, section chief within the CFPB’s Office of Research, during a conference call with reporters. The agency wants “to have a better understanding […]