Consumer credit reporting in the economy: What is consumer credit reporting, and why is it used?

What is consumer credit reporting, how does it work, and what functions does it perform?

These are the initial basic questions that need to be answered in order to understand the phenomenon in question before making any attempt to identify a legal framework, analyse it, and debate its suitability. The comprehension of the mechanisms, rationale, economics and uses of consumer credit information reporting systems, in fact, represents the starting point for any such study.