Proposal for Credit Reporting Reform Ballot Initiative

John Clifford, a reader of this blog, contacted me about his idea for an Ohio ballot initiative to stop credit reporting abuses. "I hate credit reports and I have decided to start a grass roots Ohio Ballot Initiative," he wrote. "70% of all credit reports contain errors. The system was designed to the maximum benefit of the lender and the detriment of the borrower." As for his proposed changes, he adds: "This is a direct challenge to the arrogance and omnipotent attitude of the lenders. This will help to level the playing field for the borrowers. I need help putting this together. Do you know anyone who has similar views or expertise in this area?"

Well, I don't, but I'm sure that some of my readers do. Interested parties should leave a comment or send me an e-mail at yellowdogsammy-at-hotmail-dot-com. Here is Clifford's thinking on the matter so far (and I have to say, there are some excellent ideas here):

Ohio Ballot Initiative: Credit Reporting Reform

(1) Ban all credit scoring.

(2) Ban “inquires” on credit report. Why: Its no one’s business where and when you apply for credit. The consumer is punished for multiple inquires when shopping multiple lenders for the best deal.

(3) Time limits for making corrections. In state servicing companies and credit bureaus have 30 days to correct any errors. Out of state lenders have 24 hours to make corrections if they receive an email request to make a correction.

(4) Special prosecutor. Appointed by governor to extradite out of state lenders and credit bureaus that violate the rights of Ohioans under this new law.

(5) All history on accounts can date back only 24 months. Includes foreclosures and bankruptcies. However, criminals convicted for white collar/ mortgage fraud will have that data on the report for 5 years. Why: If someone gets their credit damaged by job loss or divorce, then they should not be punished for 7 years.

(6) Can’t report anything late unless it has gone 60 days. Why: If you simply forget or screw up you should not be punished.

(7) Can’t call people and harass them for payment until 25th of the month.

(8) Out of state lenders can’t reject an appraisal from a licensed Ohio appraiser. Except in cases of obvious fraud.

(9) You can pull your own credit report for free at any time.