For Immediate Release:
U.S. House Votes to Protect Consumers with Credit Reporting Reforms
New bill will give consumers more protections and control over their credit information
WASHINGTON D.C. - The U.S. House of Representatives yesterday passed H.R. 3621, the Comprehensive CREDIT Act of 2020, (221 – 189 vote), a legislative package that aims to overhaul the credit reporting system and fix some of its major flaws.
“The protections in the Comprehensive CREDIT Act will transform credit reporting and help to improve the financial lives of American consumers,” said Christine Hines, legislative director of the National Association of Consumer Advocates.
Credit reporting issues have consistently been the leading source of consumer complaints at the Consumer Financial Protection Bureau. Inaccurate information on credit reports in particular affects tens of millions of Americans. The Federal Trade Commission has previously reported that 21% of consumers had errors on their credit reports. Furthermore, more than half of the consumers who attempted to fix the errors believed their credit reports were still inaccurate even after investigations had concluded.
This bill addresses key problems consumers face in the credit reporting system. It would, among other things:
• Give consumers more rights and options to dispute and correct inaccuracies on their reports.
• Restrict the use of credit information for employment purposes.
• Allow consumers, including home owners and private student loan borrowers, who have been victimized by predatory for-profit colleges, lenders or servicers, more options to fix their credit reports.
• Expand free access and more meaningful information related to credit reports, including providing consumers with free credit scores when they apply for certain loans.
• Enhance rights and relief for consumers with medical debt.
“When a negative and often inaccurate report can mean the difference between getting a critical loan or not, and even getting a job, the credit reporting system should be up to par to ensure a fair and transparent process for consumers to dispute mistakes and obtain timely corrections with minimum harm and inconvenience,” Hines said.
The U.S. Senate should take up and immediately pass this legislation.