ST. LOUIS and SAN DIEGO, March 25, 2004 (PRIMEZONE) -- Today, in United States Federal District Court and in California State Court, two complaints have been filed against the three national credit repositories, Equifax Inc., Trans Union LLC and Experian Information Solutions Inc., by the National Credit Reporting Association, Inc., (NCRA) and its members.
These lawsuits have been filed as other attempts to end the anti-competitive climate in the industry have been rejected. While this litigation will focus on industry issues and a series of anti-competitive practices by these firms that have been accelerating over the past decade, there is another, much larger issue that must not get lost in this case: i.e., the issue of reasonable access to fair credit terms for millions of American consumers who have been unjustly hindered in the pursuit of credit due to service restrictions brought about by these unfair business practices.
Just ten years ago, more than 1,500 independent credit reporting agencies provided local credit reporting products and services to lenders of all types. Today, a few hundred companies remain in a marketplace that is bound by policies designed by the national repositories to stifle competition. These policies, many of which were outlined in a study by the American Antitrust Institute in September 2003, are pure facades to hide unfair business practices that stretch far beyond the scope of consumer protection, with the clear intent to eliminate the independent segment of the credit reporting industry. This industry segment is dominated by small businesses that have flourished by providing a standard of customer service unavailable from the defendant's massive bureaucracy and call centers that are now starting to be relocated overseas.
Terry Clemans, executive director of the NCRA, reports that "NCRA is the named plaintiff in the California state action at the request of its membership to enforce the mission of the association in protecting both business and consumer interests. We will show that these firms have been engaging in a pattern of unfair business and pricing practices that have been designed to eliminate competition, that undermine consumer interests and which could ultimately undermine a cornerstone of the American dream."
Gary Kassan, NCRA President, stated "NCRA members provide a crucial service to customers engaged in the loan process and without us, the consumer will be left to fight the bureaucracy on his or her own. We are concerned about making sure that the playing field is leveled and that our industry can work harmoniously with the credit repositories for the betterment of the consumer."
Clemans added, "NCRA members have become numb to the abuses handed down from the credit bureaus and, before today, never believed that there was anything that could be done about it. Our fight is for the good of an industry that protects the interests of consumers and saves them millions of dollars each year by keeping their credit accurate and their interest rates lower."
Clemans continued, "Unlike many industries where technology forces consolidation, the small companies in the credit reporting industry have some of the latest technologies and utilize those technologies in the consumers' interest to most efficiently adjust to the quickly changing credit markets. These companies can't protect consumer interests when they are prohibited from competing in those markets due to the abusive business practices of the national repositories."
Further comments on this case can be obtained from the attorneys representing the NCRA and its members:
Michael J. Flannery THE DAVID DANIS LAW FIRM, P.C. 8235 Forsyth, Suite 1100 St. Louis, MO 63105 Phone: (314) 725-7700 Fax: (314) 721-0905 Dennis Stewart HULETT HARPER STEWART LLP 550 West C Street, Suite 1600 San Diego, CA 92101 Phone: (619) 338-1133 Fax: (619) 338-1139
The National Credit Reporting Association, Inc. (NCRA) was founded in 1992 as a national trade association to represents the unique interests of the specialized consumer reporting agencies that provide mortgage credit, tenant screening and employment screening reports. NCRA represents two of every three companies in the United States that produce reports for mortgage lending. NCRA provides its members education, certification, and advocacy in government affairs. National Credit Reporting Association, Inc.