House Passes Credit Reporting Upgrade Bill

Jan 30, 2020

Proposed legislation designed to upgrade the credit reporting system passed the House of Representatives by a 221-189 vote.

The bill, the Comprehensive Credit Reporting Enhancement, Disclosure, Innovation, and Transparency (CREDIT) Act (HR 3621), runs 197 pages and combines six other bills into its text. According to the text of the bill, its goal is “to amend the Fair Credit Reporting Act to remove adverse information for certain defaulted or delinquent private education loan borrowers who demonstrate a history of loan repayment, and for other purposes.”

Rep. Ayanna Pressley (D-MA), who sponsored the bill, insisted the legislation “will greatly improve a fundamentally flawed credit reporting system, providing much needed relief for families across the country.”

“It is past time for Congress to affirm economic justice for hardworking Americans and create a credit reporting system that truly works for all,” said Pressley, a first-term representative who gained national attention as part of the four-woman “Squad” of progressive legislators. “When credit reports determine where you can live, work and how much you will have to pay for everything from a car to a college degree, consumers deserve a system that ensures equity, transparency and accountability.”

At the moment, there is no companion bill in the Senate to mirror the goals of the CREDIT Act. The White House issued a statement that it opposed the bill, arguing it would reduce the efficiency or consumer lending markets while raising the costs of consumer credit and enabling the Consumer Financial Protection Bureau to “control the development of credit-scoring models, which would hinder market competition that drives innovation and improves modeling.”

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Phil Hall

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Jan 30, 2020

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