CASE STUDY QUESTIONS:
1. Assess the business impact of credit bureaus’ data quality problems for the credit bureaus, for lenders, for individuals. Credit Bureaus know that their own systems are responsible for many credit report errors. Some mistakes accures because of the procedures for maching loans to individual credit reports.They must continually contend with claims from customers who falsify lender information or use shady credit report companies that challenge all the negative information on a credit report regardless of its validity.Therefore they have to use automated system to forward customer disputes to lenders for veryfiation.They have to spend more money for data processing center to sends customers protests and evidence.
Credit Reporting Agencies colect data from various sources to create a detailed file of an individual's borrowing and bill paying habits. On one hand his information helps lenders assess a person's credit worthiness, the bility to pay back a loan and can also effect the interest rate and other terms of loan, including whether a loan will be granted.But on the other hand if the wrong information gets into their systems about potential clients from Credit Bureaus, they are losing these clients as well as money.
Credit bureus errors are impossible to fix. If the customer tries to contact the lender that made the error on their own, banks have no obligation to investigate it.Credit Bureau's data quality problems can distroy individual's life because that can effect the interest rates, other terms of loans including whther the loan would be granted,the error can even effect the chances of finding or keeping a job as some epmployers check he credit repots when making hiring or promotio decisions.
2. Are any ethical issues raised by credit bureaus’ data quality problems? Explain your answer. 3. Analyze the management, organization, and technology factors responsible for credit bureaus’ data quality problems. 4. What can be done...
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