Fighting the Post-Recession Repression

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Fighting the Post-Recession Repression

2009 March 19tags:Bailout,Credit,Economic Recovery,Economy,Financial Literacy,Government,Obama Administration,Stimulus Package,The Little Guy by Mitch Chester Let’s take those 90,000 unemployed workers who once had manufacturing jobs in Ohio. They lost their livelihoods because of theindiscriminate economic downturn….through no fault of their own. That they cannot pay their bills and obligations places them into a creditreport nightmare. Yet there does not seem to be any plan out there that eliminates unfair derogatory credit information which will inevitably be posted by Equifax, Experion and Trans Union. These innocent credit casualties may suffer consequences for years to come, even as therougue institutions who created this incomprehensible money mess rebound and walk down a reassured Wall Street in the months to come.Long after the recession passes and America regains its new form of economic footing, new jobs in a stronger economy will be found by thecurrently unemployed. However, those tarnished with the stigma of being without a means to make a living due to lay offs and plantclosures inthese dark days will continue to suffer by having to live with negative comments on their individual credit reports. Created through nomalfeasance on the part of these debtors, those disparaged credit records will last between seven to ten years. Presumably the ability of each affected reportee to obtain reasonable credit terms may result in a legacy of punishment with excessively high interest rates, and in somecases, lost opportunities to rebuild responsible financial futures.Congress must do something substative to assist these economic refugees by eliminating bad credit reports for those who have lost their jobsdue to the severe landslide in all sectors of financial life.

Under the Federal Fair Credit Reporting Act, which regulates credit bureausand their reporting activities, lawmakers should establish strict criteria to allow deletion of negative data for the blameless who seek torebuild their economic standing.

This can be accomplished by identifying those who created their own financial mess by intentionally not paying obligations when they had the means, from those who did everything they could to protect their financial reputations, but could not dueto forces far beyond their control. Such is a national recovery imperative. Failure to recognize that the effects of the current disaster may linger for up to a decade for those who deserve clean bureau histories is to ignore a clear and present danger which stands in the way of a genuinerecovery which is meaningful to all.Are the innocent about to suffer 7 to 10 years of bad creditreports?

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Page 1of 8Fighting the Post-Recession Repression «6/17/2009http://sharedemergency.wordpress.com/2009/03/19/fighting-the-post-recession-repression/

Bad credit notations for the innocent should not be permitted, or the spiral of economic punishment of the innocent will linger, foryears to come.

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Bailout,Credit,Economic Recovery,Economy,Fincancial Literacy,Obama Administration,The Little Guy One Responseleave one

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1.2009 March 19Ellis permalink You’re right! That’s very likely to cause a problem. And I do feel sorry for those who are caught in that trap.On the other hand, the problems we’re facing right now come largely from the fact that bad loans were given to credit-UNworthy folks inlarge measure because the government stepped in and virtually ordered the banks to do it.If the problem has been that people don’t saveup for those rainy days and insist on mortgaging their futures and their kids’ futures to livefor the moment, might it not be that this mechanism is working as it should? Might it not be the right kind of lesson? I’m not into punishing folks for bad decisions; but I can support their learning from them. And might it be just the wrong way to go to have thegovernment step in and “declare” these folks credit-worthy? After all, just the fact that they lost everything for no fault of their owndoesn’t mean that they’re any more capable of paying down loan payments or not running up their credit cards to the limit again. Theysimply can’t afford things, and that’s the bottom line for a credit report.This is something that’s going to make keeping up with the Jones’s and living beyond one’s means almost impossible. A large dose of that across the country should put us back on a much stronger economic footing. You can bet that these people who can’t qualify to borrow are going to have to wait until they’re on solid financial footing before they try again to live high on tomorrow’s earnings.Reply edit