The late and legendary Washington Huskies football coach Don James implemented a new strategy for recruiting in the 1980s by instructing his assistants to bring their own stopwatches to measure the speed of potential players. This decision was made after the team experienced subpar seasons due to a lack of team speed, which was attributed to inaccurate information provided by high school media guides and coaches. By gathering their own data, the team was able to make more informed decisions and ultimately saw an improvement in their performance.
Drawing parallels to the world of consumer finance, the Consumer Financial Protection Bureau (CFPB) is aiming to impose stricter regulations on credit bureaus, medical information companies, landlords, and others. However, the CFPB’s attempt to limit the gathering of information may have unintended consequences for borrowers, creditors, and renters. By restricting the flow of information, the CFPB could potentially harm individuals seeking credit while trying to protect them.
The CFPB’s actions raise concerns about potential legal implications, as the agency is overstepping its authority by attempting to dictate information gathering practices. By limiting the availability of data, the quality of information about potential borrowers, credit card holders, and renters may be compromised, leading to increased costs and reduced access to credit. This could have negative repercussions in the market economy, as prices will eventually have to reflect the reality of the situation.
Just as Coach James and the Huskies saw a turnaround in their fortunes by demanding better information from players and coaches, credit issuers may also experience positive outcomes by having access to more accurate data about their customers. This could result in improved decision-making and potentially benefit customers who are seeking credit. The importance of having reliable information cannot be understated, as it allows for more informed choices and can lead to better outcomes for all parties involved.
In conclusion, the parallels between the sports world and consumer finance highlight the importance of having access to accurate information. By learning from the lessons of Coach James and the Huskies, the CFPB and other regulatory agencies can make more effective decisions that benefit both consumers and creditors. Ultimately, the ability to gather and utilize data in a responsible and ethical manner is key to ensuring a fair and efficient financial system for all.
