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house Bill H.R. 3621

House Democrats’ Credit Score Reporting Reforms

Argument in favor

This package of reforms to the credit reporting process would help protect consumers from having their employment or lending prospects impaired.

burrkitty's Opinion
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01/29/2020
When people are rejected from jobs they need due to “bad” credit, that’s exacerbating their struggle. The idea that a potential employer can get at your private financial situation is a absurd invasion of privacy. It’s NONE of their business. If you aren’t running for public office, it’s not anybody’s business.
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jimK's Opinion
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01/29/2020
I get access to 3 credit agency reports on a monthly basis. I find it interesting that they list different things in their reports and cite as negative factors debts that were discharged years ago, with no late payments or negative factors. Some consider it bad that I am not using more of the credit available to me. Some do not. I started the process of challenging the basis of some of the reported negative factors but it all got more involved than I cared to deal with. The ratings are not bad and, at this point in my life, I really do not care. However, in my younger days irregularities in my credit reports or having unknown factors that could effect my credit rating could have had very negative consequences, and may have had consequences that hurt me financially at the time. I whole heartedly support this legislation to keep our citizens protected from practices that can unfairly limit their opportunity toward their personal ‘pursuit of happiness’ in the manner our founders envisioned.
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Michael's Opinion
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01/29/2020
People shouldn’t be penalized for participating faithfully in a system designed to shackle them with debt.
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Argument opposed

Combining six partisan bills into one massive partisan bill is a poor way to make policy and all but guarantees that this package won’t become law.

Jacqueline's Opinion
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01/29/2020
your credit score does not determine how well you do a job
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Just.Dave's Opinion
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01/29/2020
Some of the components, I say yes, others no. To lump it all together I say hell no. Addendum: I can check my credit score every week for free with Nerd Wallet... and Nerd Wallet is free.
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JTJ's Opinion
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01/29/2020
There are a couple good ideas here, but as a whole I don’t agree with this.
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What is House Bill H.R. 3621?

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.

Impact

Consumer credit reports; credit reporting agencies; and lenders.

Cost of House Bill H.R. 3621

A CBO cost estimate is unavailable.

More Information

In-Depth: Rep. Ayanna Pressley (D-MA) introduced this bill, which initially was focused solely on credit relief for private student loan borrowers, before it was amended to include several other credit score-related pieces of legislation. Pressley offered the following statement on the introduction of her bill:

“Student debt is now the second highest form of consumer debt. Trailing only mortgages, student debt impacting nearly one-sixth of the total U.S. population above the age of 18. Throughout the Commonwealth, including my district, the Massachusetts 7th, over 855 thousand borrowers owe a total of $33.3 billion. But what’s missing in all these numbers and statistics are the people. The teachers, the nurses, the veterans and seniors. Anyone attempting to improve their lives and give back to their communities and their country through a higher education. My bill will help those borrowers who had to resort to private student loans -- one of the riskiest ways to finance a college degree because these loans lack important consumer protections and repayment options. Private student loans make up nearly 10% of the total outstanding student debt. And unlike federal student loan borrowers, these borrowers are oftentimes left without a pathway to financial stability during hard times.”

The six bills included in this package passed the House Financial Services Committee on party-line votes with Democrats in favor and Republicans opposed:

Financial Services Committee Republicans’ reasons for opposing the six bills included in this package varied, and in their objections they noted that they share concerns about issues such as the student debt crisis or that a candidate’s credit history could negatively impact their chances of being hired for a job. That being said, they opposed many of the provisions in this package as solutions in search of a problem that won’t resolve underlying issues and create unnecessary or redundant regulatory burdens. Additionally, they took issue with the manner in which the committee advanced these bills in a partisan manner that rejected amendments they offered.


Media:

Summary by Eric Revell

(Photo Credit: iStock.com / alexsl)

AKA

Comprehensive CREDIT Act of 2020

Official Title

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.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house Passed January 29th, 2020
    Roll Call Vote 221 Yea / 189 Nay
      house Committees
      Committee on Financial Services
    IntroducedJuly 5th, 2019

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    When people are rejected from jobs they need due to “bad” credit, that’s exacerbating their struggle. The idea that a potential employer can get at your private financial situation is a absurd invasion of privacy. It’s NONE of their business. If you aren’t running for public office, it’s not anybody’s business.
    Like (166)
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    your credit score does not determine how well you do a job
    Like (45)
    Follow
    Share
    I get access to 3 credit agency reports on a monthly basis. I find it interesting that they list different things in their reports and cite as negative factors debts that were discharged years ago, with no late payments or negative factors. Some consider it bad that I am not using more of the credit available to me. Some do not. I started the process of challenging the basis of some of the reported negative factors but it all got more involved than I cared to deal with. The ratings are not bad and, at this point in my life, I really do not care. However, in my younger days irregularities in my credit reports or having unknown factors that could effect my credit rating could have had very negative consequences, and may have had consequences that hurt me financially at the time. I whole heartedly support this legislation to keep our citizens protected from practices that can unfairly limit their opportunity toward their personal ‘pursuit of happiness’ in the manner our founders envisioned.
    Like (119)
    Follow
    Share
    People shouldn’t be penalized for participating faithfully in a system designed to shackle them with debt.
    Like (92)
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    Protecting employment from credit reporting helps people repay what they owe! If they can’t work they can’t pay debts owed!
    Like (73)
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    The banks are out of control!
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    The idea that a potential employer can see an applicant’s creditworthiness is absurd. It could potentially bar people from income they could then put towards their debt. We need to protect people (to the best of our ability) from being punished for living in an unjust system. Having poor credit doesn’t make someone untrustworthy or a bad worker.
    Like (40)
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    Many aspects of society today combine to prevent people from improving their economic fortunes. These barriers are literally creating a cast system. One problem with the bill is that although it bars consumer credit reports from being given to potential employers. It does not prevent the employers from making a requirement of signing a release to the employer in order to apply for a job. In other words no signed release no application accepted. To much power over the working class is placed in the hands of the corporations and wealthy. We have become serfs.
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    These financial institutions were the reason 2008 is so memorable. Stop them from screwing more people over so they can benefit. Unless it’s a high security job, someone’s debit isn’t really an employers business or need to know.
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    Some of the components, I say yes, others no. To lump it all together I say hell no. Addendum: I can check my credit score every week for free with Nerd Wallet... and Nerd Wallet is free.
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    Yes, this helps all consumers from being attacked by employers
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    Whatever it takes to get Americans a better chance of achieving life, liberty and the pursuit of happiness sans being chained to three numbers - credit scores.
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    Republicans always want to make life harder for the struggling working class and hold them to impossible standards, while Republicans can commit crime after crime and get all the breaks while they amass more and more wealth by breaking laws and stealing every penny from us. We get poorer everyday, and the Republicans become President so they can make our lives even harder. They scream about the poor getting 10.00 in food stamps, while they rob us of billions and think nothing of it.
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    The reforms are a start. We need gender equality in credit scoring!
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    This reform to the credit reporting process would help protect consumers from having their employment or lending prospects impaired. If they cannot work they cannot pay off debt.
    Like (16)
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    Vote YES. The worst thing Republicans can say about this badly needed consumer protection bill is that it’s too “big.” Seriously?!? That’s as pathetic as their “imminent threat” and “weapons of mass destruction” lies.
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    I totally agree that employers should not have the right to check credit scores unless the job involves high security clearance. I also think it is wrong not to show all history. Many people have good or excellent credit before the housing crisis and had to rebuild. The way it currently works you can’t see that a person had a high score for years until the crash. Too much emphasis is on money these days, including those that think as long as the stock market is high every one must be doing great economically.
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    My representative voted against this bill. I am disappointed but not surprised. My representative usually vote against this constituents interests. I am watching closely
    Like (13)
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    Absolutely. This is needed!
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    Protect people from the overwhelming influence banks have
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