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Tuesday, January 21, 2014 - 10:31am
Despite laws to keep consumers informed about their credit score, many still don't get it. That's the results of a recent survey conducted by credit scoring company Vantagescore Solutions.
The 2011 Dodd-Frank Act requires lenders to inform consumers who are declined credit or given less favorable terms, and explain the decision. Credit lenders say only about 10 percent of their customers fully understand the 2-digit reason code system used in the explanations.
Analysts say the codes often use confusing terminology and are too short. Vantagescore launched a website last year, reasoncode-dot-org, to help consumers understand the reasons they are denied credit.