Wednesday, April 25, 2018

Judgments And Liens To Be Removed From Credit Reports By Government Order - What Could Possibly Go Wrong?

Yes, the Consumer Financial Protection Bureau, that rather rogue agency created by the Obama administration decided it didn't like that judgments and tax liens were being reported and negatively affecting peoples credit scores - poor and minorities hardest hit doncha' know?

The Detroit Free Press: Credit scores may jump this month thanks to new scoring rules enacted after CFPB study

Of course, while this will help the scofflaws with outstanding judgments and tax liens, will now be more likely to get credit they otherwise would not, but this will likely increase the cost of credit for everyone as lenders won't be able to factor the risk that the money they lend many not be able to be paid back by the borrower after the borrower is garnished or has their assets seized to satisfy the outstanding judgments and tax liens.

What could possibly go wrong with making sure subprime and deep subprime borrowers get even more access to credit and with lenders not able to know the full scope of the risk they are making lending to them?

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