One simple way to change credit reporting is to make the process "opt-in". Credit reporting agencies can only report on consumers that agree to have their information reported. They could still collect publicly available data but couldn't report unless they have a consumer's ongoing agreement. Essentially, everyone's report is "frozen" by default and the agencies are automatically monetarily liable unless have an explicit agreement for this unfreezing.

That said, I'm not sure a world without consumer debt would be that much worse.