Wexton Helps Pass the CREDIT Act to Protect Consumers

Statement

Today, Congresswoman Jennifer Wexton (D-VA) voted to help pass the Comprehensive Credit Reporting Enhancement, Disclosure, Innovation, and Transparency (CREDIT) Act of 2020. The Comprehensive CREDIT Act is a package of bills to reform the credit reporting industry and provide greater protections for consumers.

"A credit score can determine whether you can get a job, are able to rent a house, or access credit -- but right now the deck is stacked against consumers who often feel helpless and at the mercy of credit reporting agencies," said Congresswoman Jennifer Wexton. "The legislation we passed today gives some of the power back to consumers. It will help ensure transparency in the scoring process and give consumers the ability to address errors in their report and repair their credit."

The Comprehensive CREDIT Act grants consumers greater rights over their credit reporting including transparency into the scoring process and the right to appeal disputed items in a report. It requires more accountability from credit reporting agencies and lenders such as requiring federal oversight in the development of scoring models as well as affordable credit monitoring and identity theft prevention services. The legislation also limits the impact of negative reports of private student loan debt, medical debt, and debts resulting from fraud or identity theft.

According to a major study by the Federal Trade Commission, more than 40 million Americans have inaccurate credit reports, and complaints related to credit reports are one of the most common topics submitted to the Consumer Financial Protection Bureau -- demonstrating the magnitude of the challenges Americans face with the current credit reporting system.

Source