Credit Reporting And The Major Players

Duns Analytical Services. Industry Norms and Key Business Ratios. Murray Hill: Dun and Bradstreet Information Services,

The Credit Mobilier company was formed by George Francis Train Who was the vice president and in charge of publicity for the Union Pacific Railroad. The company was crated to limit the liability of its stockholders and to maximize the profits. The company gave cheap or free shares of stock to members of congress who would support additional funding. In 1872 the scandal was brought to the publics attention by Henry Simpson McComby. He claimed that $72 million in contracts had been given to the the mobilier company to build a railroad that only cost $53 million to create. The investors where left nearly bankrupt and it ruined the reputation of many of the congressmen who had accepted the bribes including James A. Garfield, Schuyler Colfax, James

Many businesses are requesting credit report authorizations from their applicants as part of their screening process for employment. According to the Federal Fair Credit Reporting Act (FCRA), the applicant must give the employer authorization in order for the employer to receive a copy of the credit report. (Rosen, 2000). Credit reports are requested by some companies to review and verify information regarding the applicant such as one’s identity, the amount of debt and also to help them to determine if one is qualified for the job. In addition the credit report contains a variety of personal information for example one’s first and last name, the social security number, current and

“Instead, prior research claims to show that younger, nonminority consumers with relatively high incomes and educational levels are more likely to take advantage of services from third-party agencies, like the BBB” (Garret & Toumanoff, 2010, p. 3). Therefore, the organization created, Council of the BBB (CBBB), changed point system to eliminate points awarded for accreditation, streamlined its processes for receiving complaints, implemented additional procedures for investigating complaints, begun a thorough investigation into its Los Angeles bureau, agreed to review its processes into accrediting businesses, and instituted a procedure requiring an independent third party to help in the review process. Hopefully, these changes will give this organization the ability to regain its reputation with consumers. Since this organization is mainly funded by businesses and accredited membership, one should be confused as to whether these standards will be adhered to by BBB

The Fair Credit Reporting Act was established in 1970. This act is in accordance on how a credit agency reports credit information. The Fair Credit Reporting Act serves to protect the privacy and integrity of clients. It allows individuals to adjust any inaccurate information in a credit report and provides a solution if a credit agency violates your rights. According to the Privacy Rights Clearinghouse (2014), “anyone with a "legitimate business need" can gain access to your credit history.” (2014). The businesses that have access to your credit report include, landlords, insurance companies, employers, Government agencies, child support agencies. Having a credit report on file is

After analysing the financial statements of Home Depot, we have allocated a “C” rating of credit risk. The proposal is to start with the “C” rating and then to either upgrade to a “B” rating or to be down graded to a “D” rating. The reason for such a decision is discussed below.

The Federal Fair Credit Reporting Act (“FCRA”) provides borrowers with consumer rights and protections including the right to dispute inaccurate or incomplete information with the consumer-reporting agency or with the furnisher (Residential Credit Solutions, Inc.) directly. This law requires RCS to review the dispute including supporting evidence provided with the dispute. The furnisher must investigate the disputed information and provide its findings to the consumer-reporting agency or to the borrower.

The Truth in Lending Act (TILA) protects one against inaccurate and unfair credit billing and credit card practices. It requires lenders to provide you with loan cost information so that you can comparison shop for certain types of loans. People have a right of rescission for loans covered under TILA, which allows you three days to reconsider your decision and back out of the loan process without losing any money. This right helps protect people against high- pressure sales tactics used by unscrupulous lenders. Companies that would lend you money are under certain obligation to provide you basic information about the loan in clear and understandable terms. The most commonly

Capital One use information system to assess the credit risks of customers while other companies rely on personal experience and judgments

In the world of personal finances, credit cards play an important roles in lives of many people. Sometimes, it's out of choice while other times it happens out of necessity. Regardless of why it happens, the numbers surrounding credit card debt are worthy of scrutiny in order to determine whether having or using credit cards is a sound financial decision.

When Office Products Depot decides to potentially offer credit to a customer, they check credit ratings and follow policies to help them decide if they should

Jules Kroll is planning to enter into the ratings industry. To determine whether it is a good idea and a good time for him to enter into the new business, we project the 5-year NPV for KBRA and apply SWOT analysis to KBRA. The 5-year projected NPV is $341.1 million, a positive number. It is a good time and a good idea for KBRA to enter the business. However, through our SWOT analysis, it would be difficult for KBRA to become competitive in a short time. Thus we suggest it add a credit rating division into the company to make attempts to it but not start up a

In conclusion, we could say it is a good time for Kroll to enter credit rating business since the big three agencies lost considerable investor confidence during the financial crisis, and that the sector is ripe for new blood. However, based on our SWOT analysis, we don’t think it

On September 29th Rentrak and ComScore announced their merge. According to the deal the companies have an equity value of about $2.4 billion while Nielsen has a market capitalization of about $16.7 billion. Still, Nielsen dominates the rating market, however, is Rentrak and ComScore a strong competitor? What is Nielsen doing in digital rating business?

The Financial Reporting Council (FRC) has recently released four new standards: FRS 100 Application of Financial Reporting Requirements; FRS 101 Reduced Disclosure Framework; FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; and FRS 103 Insurance Contacts. FRS 100 basically describes who does what with the new UK GAAP. It describes which principles apply to which type of business; when a business can apply the reduced disclosure framework; and when a business should follow a statement of recommended practices, or SORP. FRS 101 lays out a reduced disclosure framework for entities. Certain entities can choose to use this reduced disclosure framework while creating their financial statements. FRS 102