The History of Credit Rating Agencies
Companies that collect information about consumers' credit and place a rating number on the status are known as credit rating agencies. While there were a number of different companies that have handled this process in the past, there are three major companies that currently control the credit rating of most Americans.
Other People Are Reading
-
Equifax
-
Equifax is the oldest credit reporting agency in the world. It was established in 1899 and had expanded to companies throughout the United States and Canada by 1920. Equifax came under criticism in the 1960s and 1970s because it collected information about consumers' political activities and sex lives.
TransUnion
-
TransUnion formed in 1968. It acquired a number of credit bureaus throughout the United States beginning in 1969 with the Cook County Credit Bureau. The company also established agreements with a number of other major city agencies.
-
Experian
-
One of the largest credit rating agencies, Experian was founded in 1980 and began operating in the United States in 1996. As of 2009, the agency operates in 36 countries.
Significance
-
Originally passed in 1970, the Fair Credit Reporting Act regulates the way agencies can collect and use consumer credit information. Eight years later, the Fair Debt Collection Practices Act limited the actions of creditors in collecting debts (see Resources).
Considerations
-
In 1985, the Supreme Court determined that any agency that reported past or impending business bankruptcies can be held liable if that business is considered a public figure (see Resources).
-
Resources
- Photo Credit Channel R
