ABA: Proposed Legislation Would Degrade Credit Reports

In a memo to members of the House Financial Services Committee today, the American Bankers Association expressed opposition to several bills that would amend the Fair Credit Reporting Act and make changes to the credit reporting process. ABA opposed three bills up for consideration tomorrow, including:  H.R. 3622, the Restoring Unfairly Impaired Credit and Protecting Consumers Act; H.R. 3642, the Improving Credit Reporting for All Consumers Act; and H.R. 3621, the Student Borrower Credit Improvement Act.

ABA noted that as proposed, these bills “would make credit reports less accurate and potentially seriously [diminish]the value of credit reports that are the foundation of a fair and fact-based credit market. Ultimately, they could threaten the consumer lending market by reducing access to credit.”

The association also noted that several other bills, including H.R. 3614, the Restricting Use of Credit Checks for Employment Decisions Act; H.R. 3618, the Free Credit Scores for Consumers Act; and H.R. 3629, the Clarity in Credit Score Formation Act, would benefit from further examination and input from stakeholders.