What ’ s in the File ? The Economics and Law of Consumer Credit

enders in the United States have voluntarily shared information about their customers — through credit bureaus — for nearly a century. In this article, Bob Hunt explains how sharing information about consumers’ indebtedness and payment histories can benefit both consumers and lenders. These benefits depend, however, on the accuracy of the information reported and the care taken to ensure that information is disclosed only when it is appropriate. Hunt also describes the Fair Credit Reporting Act, which attempts to address these concerns. Finally, he closes by reviewing a number of challenges consumer credit bureaus may face in the early years of this new century.