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Consumers and lenders may receive different credit scores

Illustrating yet again how tough it can be to get a level playing field with business interests, federal watchdogs say that one in five consumers is likely to receive a credit score different than the one given to lenders.

The Consumer Financial Protection Bureau’s study shows that while you might think you’re entirely credit-worthy, banks and others are possibly being told a different story.

“This study highlights the complexities consumers face in the credit-scoring market,” said Richard Cordray, the agency’s director. “When consumers buy a credit score, they should be aware that a lender may be using a very different score in making a credit decision.”

Consumer advocates have long charged that credit-reporting companies provide varying scores to lenders. The federal agency confirms this, saying that many consumers receive a “meaningfully different” score than their lender.

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Adding insult to injury, consumers may never know about the discrepancy and could thus remain in the dark about why they may have been rejected for a loan or drew a higher interest rate.

The consumer bureau plans to start supervising about 30 of the largest credit reporting companies at the end of the month.

Not soon enough, you could say.

 

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