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From: jim@piggy.ucsb.edu (Oreo Cat)
Newsgroups: comp.org.eff.talk
Subject: OUTLAW ALL DATABASES!!
Message-ID: <7425@hub.ucsb.edu>
Date: 27 Nov 90 19:27:27 GMT
Sender: news@hub.ucsb.edu
Organization: Laputa, Castle in the Sky
Lines: 57

Theres one important point in this debate which I haven't seen anyone
bring up yet.  From what I read of John DeArmond's articles, one of the
reasons he is upset is because of some sort of credit dispute.  I
sympathize with him, but banning or restricting databases will only
make things much much worse.  

This may seem very elementary, but I want to make things clear...

Banks take a risk with each loan or line of credit they extend.  They
take this risk because the payoffs for them can be very good if nothing
goes wrong.  If things do go wrong, they could end up loosing money,
or having it tied up for a long time.  So how do they know if a 
particular person is worth taking the risk on?  The best way currently
is to look at past performance.  How much credit does the person 
currently have, as compared with their current income?  Do they have
a steady job which will be there in the future?  How much in the hole
are they currently?  Have they ever in the past made late payments?
etc...  From this they can pretty much tell how you are going to
handle their money.

Now where do they get this information?  From databases, of course.
What better way is there?  You have a very complete set of fairly
accurate facts (at least most of the time).  Consider what would
happen if these databases didn't exist.  How would the banks know if
you are a good risk?  The only way is to either get the applicant's
permission to collect information.  Then they would have to do it
all themselves.  This would cost a fortune!  You don't think they
would take your word that you are a good, upstanding person?  Can
you imagine how many would use this to their advantage?  Just get
a few friends to say how good you are, and you have a bunch of money
to play with.

So banning or severely restricting databases would make it very 
difficult to get credit.  Is this what you want?  It's not what I
want.  I'd much rather have my mistakes on record for all to see.
It makes it more difficult to receive credit, but not impossible.
Credit is not something the banks owe anyone.  It's a service
they offer to those who they beleive can handle the responsibility.

I will concede that it is difficult to remove bogus information from
the records.  I still claim that this is good.  Keeps the crooks
from driving up the fees and interest rates even higher.  It IS
possible to get bogus information off.  It just takes a while.
John DeArmond should look at his article regarding playing the
system when getting pulled over for speeding for some good pointers
he should keep in mind.

And don't let the marketers get you all worked up!  It's easy to
hang up the phone or toss the envelope in the trash.

                            Jim Lick		       
Work: University of California	| Home: 6657 El Colegio #24
      Santa Barbara		|       Isla Vista, CA 93117-4280
      Dept. of Mechanical Engr. |	(805) 968-0189 voice
      2311 Engr II Building     |	(805) 968-1239 data 1
      (805) 893-4113            |	(805) 968-2734 data 2
      jim@ferkel.ucsb.edu	|	bahamut!jim@ivucsb.sba.ca.us