ShmoopTube

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Finance a la shmoop what is the Fair Credit Reporting Act? alright so think

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old the Englande it's 1604 and your family is still working the barley [Family carrying barley]

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fields because great-great-grandfather smeltwagon wasn't very good at rolling

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the bones he lost a lot of money so yeah great-great grandpappy ended up with

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gambling losses getting him into massive debt with over 97 farthings worth of [farthings drop into a bag]

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debt accumulated after 20 years of bad gambling bones so in England well they

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would either torture you until you found a way to pay off your debts either

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legally or not or they would just throw you your family and your progeny into

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essentially a work camp for generations and in fact it was this unfairness that

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led to the notion of no taxation without representation in our own Constitution [US constitution appears]

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so as the world turned the notion of credit fairness actually became a thing

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and eventually the Fair Credit Reporting Act was established in 1970 and of

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course it gave rise to the store Credit Reporting Act first adopted by Sears

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where America well used to shop yeah I remember Sears catalog that was

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called the Amazon back in the day all right with enormous abuse of the

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credit system the haves or if the educated or the wealthy were able to get

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away with nearly everything just shy of murder while the uneducated well they [Arrow points to uneducated people]

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suffered the key driver in credit or an individual's access to borrowing money

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revolves around the manner or form in which their credit scores were reported

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and calculated in all that stuff so if you're educated you kind of know how to [Students playing video games]

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game the system right and in fact with no structure behind credit reporting the

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system was simply not trustworthy and it had to be codified or made into cookie

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cutter nuggets each of which treated those seeking a credit score equally and

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fairly individuals were able to petition to correct bad information that had

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somehow leaked into their system like inaccurate information like it would do

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that and sit there and haunt you for decades they were also allowed to

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actually access their score and amazingly in the past people did not [Credit score rises]

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necessarily have the right to view their own credit score how

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weird and finally bad credit stopped being a cattle brand that lived with an

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individual for their entire life new amendments allowed people to remove bad

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credit annotations by paying off their debts along with the penalty and then

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having good credit for three four five years after which time the negative

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frowny faces were removed from their credit ratings sheets

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so yeah credit reporting was finally fair and people were finally able to you [Cattle brand credit score appears]

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know go in for cattle brand removal that's gotta hurt...

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