Earlier quoted context omitted.
>yet is able to push the consequences to the consumer. The bank creates a separate set of consequences for the consumer, but does not transfer any consequences. The bank still suffers the costs of the fraud, the consumer suffers the costs of an inaccurate report. >we can assume that either the consequences are insignificant to them or they're just bad at business. It is just not possible for the banks to solve this p…
Demand more from the credit bureaus. Work with authorities to chase down fraud instead of punishing the consumer. If the incentive (or consequences) were significant enough they'd already be doing this. The current situation is most likely caused by it being easier for the bank to punish the consumer, at least in the short term. It's just a pita and an interesting story for Micheal Lewis, but this can have a pretty e…
The bank isn't trying to punish the consumer. This is just an unfortunate consequence of fraud that the bank is often entirely unaware of.
And big bad banks aren't the only victims of "identity theft", local small businesses are just as capable of messing up your credit.
If the regulators wanted to stop this they'd create a better ID system, but they don't want to do that.