New Services Present Another Reason To Pay Your Rent On Time
from the the-long-tail-of-credit-rating-agencies dept
The business of tabulating and reporting consumer credit scores is one of centralizing diffuse information and then reselling it to clients. But the internet has proved a challenge to this business model, and this space will likely be no different. Already, niche startups are emerging that circumvent the oligopoly of FICO score reporting agencies. These companies allow landlords to share information directly with other landlords about tenants' rental histories, potentially allowing them to avoid paying an incumbent reporting agency for a credit report. Other services target tenants, offering them the opportunity to present their own rental history. Of course, the established agencies may look to license this data, to better flesh out their own scores, but this doesn't change the fact that the internet allows peers to coordinate and share information with each other without the need of a centralized authority. Combined with nascent models such as peer-to-peer lending exchanges, services such as these may help disrupt financial institutions that have so far been very slow to adapt to new technologies.
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Scary stuff
- Consumers having very little control over the information that is kept on them.
- Regulations designed for a different era.
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Hmmm...don't like this
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Excellent
A few controls, similar to those on the big scoring agencies, will do the trick.
When applying to rent, you'll agree that your information can be shared with credit reporting agencies, if you don't already. Or, you'll pay a premium to rent someplace that accepts folks who don't want their bad prior history explored.
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Opt-In does not work.
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About time
Mind you, as when using Credit Checkers, you most likely would need to supply proof (usually by fax) that the person you are looking up signed an application, clearly stating you will look up their information. The company cannot be that stupid to give out information to anyone, as there would be legal issues.
Very great service! Can't wait to use it.
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