This bill — the Comprehensive CREDIT Act of 2020 — would make several reforms to the credit score reporting process, including how scores are reported and how information is made available to consumers and others. A breakdown of its various provisions, which were initially introduced and debated in committee as six separate bills, can be found below.
Specifically, this bill would:
Prohibit credit reporting agencies from furnishing a consumer report with adverse information about a delinquent or defaulted private education loan if the borrower has a demonstrated history of loan repayment.
Generally prohibit credit reporting agencies from providing a consumer credit report for employment purposes, unless it is required by law for a given position or is needed for a national security investigation.
Provide consumers with free credit score disclosures along with their free annual consumer report, additional explanatory information about how scores are calculated, information about the differences between & limitations of credit scores & educational credit scores, and require lenders to provide consumers with free copies of consumer reports & credit scores they used before consumers sign loan agreements.
Require the Consumer Financial Protection Bureau (CFPB) to regulate credit score models by establishing standards for validating their accuracy & predictive value, and give it the authority to prohibit the use of certain factors in credit score models.
This bill would reform the dispute process for credit score calculation by increasing disclosures of consumers’ dispute rights, indicating disputes by consumers on reports, and prohibiting misleading or unfair consumer reporting practices.
Additionally, this bill would require a consumer reporting agency to provide free credit monitoring and identity theft protection services to victims of fraud, active duty military personnel, and those 65 years of age and older. It would also revise requirements regarding the consumer credit information included by a reporting agency in a credit report by:
Requiring the removal of adverse information that resulted from specified fraudulent lending activity;
Shortening the time period adverse information stays on reports; and
Limiting the inclusion of certain medical debt on reports.