New government bureau could improve accuracy of credit reports

Renters with credit reporting disputes now have an ally in the Consumer Financial Protection Bureau.

The agency announced it will start supervising the three main credit reporting firms: Equifax, Experian and TransUnion.

Despite regulations provided by the Federal Trade Commission and The Fair Credit Reporting Act, the agency hopes to become a solution for an industry currently generating numerous complaints from consumers.

The announcement refers to complaints of inaccurate credit reporting by the agencies, which can ultimately prevent renters from landing lease agreements with property owners. Landlords often perform tenant credit screenings to insure prospective renters have a solid history paying bills. However, even one missed bill or loan payment can be a red flag to owners causing them to reject a rental application.

It is the first time that a single government agency will take an active role in policing credit bureaus, according to the Associated Press. Until now The Fair Credit Reporting Act has made it law for the credit reporting to keep accurate information about consumers.

The protection bureau will start regulating the industry on September 30.