Credit reporting, which is the leading category of complaints that the Consumer Financial Protection Bureau receives from the American public, is fraught with widespread, systemic drawbacks that have had a devastating financial impact on millions of consumers’ lives...The time is ripe for Congress to examine old and new problems and consider meaningful reforms to protect consumers in the credit reporting system.
NACA submitted a letter to the U.S. House Financial Services Committee on the Equifax cybersecurity breach. "We urge the Committee to assert its intention to protect the tens of millions of impacted consumers across the country by supporting effective policies that: protect their personal information; restore and preserve their legal rights – such as the Consumer Financial Protection Bureau’s arbitration rule; and afford them meaningful remedies to make them whole when they are wronged."
NACA submitted a letter to the U.S. Senate Banking Committee to share its views for the Oct. 4 hearing on the Equifax cybersecurity breach. The Equifax breach is an object lesson on the consequences of a powerful entity that lacks adequate controls and incentive to act responsibly and in good faith in the marketplace. We urge the Committee to assert its intention to protect the tens of millions of impacted consumers across the country by supporting effective policies that: protect their personal information; restore and preserve their legal rights – such as the Consumer Financial Protection Bureau’s arbitration rule; and afford them meaningful remedies to make them whole when they are wronged.
NACA joins oranizations to strongly support The Equal Employment for All Act (S.1819), introduced by Senator Elizabeth Warren. The bill would eliminate an unfair and discriminatory barrier to economic mobility and security for many Americans by prohibiting the use of personal credit history in employment.
Public interest organizations wrote a letter to U.S. House Financial Services Committee to urge opposition to H.R. 2359, titled the “FCRA Liability Harmonization Act.” The legislation would restrict remedies for American consumers whose credit reports and background check reports were recklessly distorted and who suffered serious consequences as a result, including losing their ability to access credit such as a mortgage, a car loan, rental housing, or employment. Limiting damages in Fair Credit Reporting Act (FCRA) legal actions, as this bill proposes, would embolden credit reporting and background check agencies to disregard federal protections meant to ensure accurate reporting of credit records and other consumer reports. The bill would allow bad actors in the credit reporting industry to wrongfully label consumers as deadbeats, terrorists, and criminals without fear of meaningful consequences. It also would have a deleterious effect on the marketplace due to the spread of defective data and information on millions of consumers and workers that almost inevitably would result.
The organizations also submitted a fact sheet demonstrating real and consequential harm to consumers.
Compelling case stories show credit reporting agencies whose conduct was so detrimental that individual consumers were unable to get serious errors in their credit reports or background checks fixed until they sued in court, and examples of consumers who banded together in class actions to seek accountability for violations of their rights under the Fair Credit Reporting Act. Under H.R. 2359, “FCRA Liability Harmonization Act,” these consumers would have been denied the ability to seek adequate remedies against bad actors.
Read the letter from public interest organizations.
Read NACA's letter to the Committee.
Read testimony of hearing witness Chi Chi Wu.
H.R. 2359, the “FCRA Liability Harmonization Act,” would deprive victims of credit reporting abuses of deserved compensation for their losses and would disrupt the marketplace by diminishing the justice system as a key tool to deter systemic and abusive conduct in the vast and complex credit reporting and information system.
NACA joins organizations on submitted comments to the Consumer Financial Protection Bureau to discuss risks and benefits of alternative data in the credit process.
In the aftermath of Wells Fargo's fraudulent conduct that led to newly opened credit and bank accounts without customers' permission, NACA joined other consumer, civil rights, and advocacy groups to urge credit reporrting companies to provide free annual reports to the affected consumers in the language in which they are proficient. According to media reports and other sources, many of the consumers affected by the Wells Fargo scandal are immigrants and limited English proficient (LEP). They need the ability to access and review credit/specialty reports in the language in which they are proficient.
NACA joins consumer, civil rights, labor, and community organizations on a letter in support of the Comprehensive Consumer Credit Reporting Reform Act of 2016, sponsored by Rep. Maxine Waters (D-Calif.). The bill would single-handedly enact a sea change to make the American credit reporting system more accurate and fair for consumers.