Credit reports still a mystery, GAO finds

Hispanics under-served by industry
The survey also revealed Hispanics were less familiar with credit reports and credit scores than whites or blacks.

While 78 percent of whites could define "credit score," only 39 percent of Hispanics could. Fewer than half of Hispanics knew they could see their credit report. About 60 percent of whites and blacks said they had obtained their credit report, but only 40 percent of Hispanics had. And while about 90 percent of whites and Blacks knew late payments could affect their credit score, only 70 percent of Hispanics knew that. Hispanics were also, as a group, half as likely to dispute erroneous items on reports, half as likely to hold a car loan, and one-third as likely to have a home loan.

"I think it just shows how much more we need to do to get Hispanics in the mainstream," Weston said.  Cultural issues sometimes impact Hispanic participation in the credit system, she said, because many immigrants come from countries where the banking system can't be trusted.  "It is an underserved population.  Lenders are making some steps that way because they realize there is money to be made. ... it is important to make sure everybody understands how the credit system works."

Hillman said the report urges government agencies to do a better job marketing credit information to Hispanics and other under-served populations.

"The federal government ought to be targeting its efforts to specific groups that need the information the most," he said.

Consumers don't know FTC's role
The other striking result from the study -- 94 percent of people did not know the Federal Trade Commission was the place to go with complaints about credit reporting agencies. The report suggests the agency needs to do more outreach so consumers are aware of its regulatory position.

"It doesn't surprise me," Weston said.  "Consumers don't know which way to turn or how to go about process of disputing items on their credit report. I would love to see the FTC to do more advertising of its role."

The FTC responded to the report by saying it is already engaged in a number of publicity efforts, including publication of educational materials and public service announcements.  Earlier this week, FTC chairman Deborah Platt Majoras said the FTC received between 15,000 and 20,000 consumer questions each week related to identity theft and privacy.

Privacy expert Rob Douglas, who operates PrivacyToday.com, was sympathetic with the workload facing the agency.

"Over the last decade, issues like identity theft and electronic fraud have just exploded, and it's not clear to me that Congress or any administration has kept pace funding-wise, providing staffing to that agency," he said.  "I think they have a legitimate argument that they do not have the resources."

Bob Sullivan is author of  Your Evil Twin:  Behind the Identity Theft Epidemic

MORE FROM ONLINE BANKING

Online Banking Section Front

Banks face challenge in screening employees India to tighten laws to prevent ID theft IRS orders review of ChoicePoint contract Indian in data scandal says he's innocent U.K. seeks Interpol's help in scandal Visa's newest attempt to thwart fraud Will the personal check ever go away? Banks try new systems to protect users Ga. first to use 'blink' cards Ex-Fleet to briefly lose online banking Online Banking Section Front   Add Online Banking headlines to your news reader: