January 27th, 2012 | 
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Myth #14 “Credit Reporting Agencies Are Part of the US Government” Reality: Credit Reporting Agencies such as Trans Union, Experian & Equifax are “for-profit” businesses and possess no government affiliation. Creditors and consumers account for their vast wealth. Credit Reporting Agencies: They Are Making Money Off Of You! Most people don’t realize that the credit bureaus make the big money by marketing you and your behavior to the highest bidder. Here are a few of the ways the CRAs are raking in the hundreds of millions by selling your data: Helping lenders scout you with targeted marketing leads. These result in the pre-approved credit card offers you get in the mail. Selling your current information to debt collectors. The bureaus sell your information to any collector that is trying to collect money from you. These collectors are considered to have a “permissible purpose” since the debt they are collecting originated with a creditor that had the right to pull your credit report. Alerting collectors to mortgage and car loan inquiries. Since mortgage inquiries usually mean a mortgage application with tons of strings attached, collectors love to know when you are trying to get a mortgage so they can do everything in their power to prevent that from going through – unless you pay them off, of course! Alerting your creditors when a late payment shows up so the creditors that apply “universal default” can start collecting their inflated interest rates right away. Schedule …
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