A new white paper by the National Consumer Law Center (NCLC) explores these aftereffects and proposes solutions to help afflicted consumers. Solving the Credit Conundrum: Helping Consumers' Credit Records Impaired by the Foreclosure Crisis and the Great Recession, by NCLC staff attorney Chi Chi Wu, reviews both the harm to individual consumers and the wider impact on economic recovery. It also documents the credit reporting problems caused by errors and anomalies, and discusses the broader problem of relying on past credit history to judge future performance, arguing that such a broad-brush approach fails to distinguish between consumers who are simply unlucky and those who are truly irresponsible. Finally, the paper makes policy recommendations to assist consumers whose credit reports were damaged by the foreclosure crisis and Great Recession.
Available at: http://www.nclc.org/images/pdf/credit_reports/report-credit-conundrum-2013.pdf