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HFS Subcommittee Considers Testimony On Credit Reporting System – Finance and Banking

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HFS Subcommittee Considers Testimony On Credit Reporting System


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The U.S. House Financial Services Subcommittee on Oversight and
Investigations considered testimony from three
nationwide consumer reporting agencies (“CRAs”) on the
accuracy of credit reports and scores, as well as the CRAs’
compliance with the Fair
Credit Reporting Act
 (“FCRA”) and recent CARES
Act
 amendments to the FCRA.

At the hearing:

  • John Danaher, Executive Vice President, Consumer
    Interactive at TransUnion
     recommended that (i) Congress enact
    legislation to facilitate greater use of alternative data,
    particularly monthly rent payments, (ii) the FTC and CFPB increase
    oversight of the credit repair industry to improve the consumer
    dispute process, (iii) the CFPB reinstate the requirements that
    lenders be the initial recipients of disputes before the disputes
    are escalated, and that third-party complaint filers attest that
    they are not credit repair organizations, (iv) policymakers set
    reporting standards for student loans and (v) policymakers support
    the expansion of trended data, which can be used to create a model
    trajectory of a consumer’s past and future scores.

  • Beverly Anderson, President, Global Consumer Solutions,
    Equifax Inc.
     attributed the increase in complaints
    through the CFPB Consumer Complaint Database to, among other
    things, (i) new CARES Act-related obligations, (ii) the submission
    of disputes to the portal, instead of directly to a CRA or data
    furnisher, and (iii) the rise of credit repair organizations’
    submissions, which dispute “accurate but adverse information
    on consumers’ credit reports.”

  • Sandy Anderson, Senior Vice President, Strategy and
    Operations, Experian Credit Services
     testified that the increase in
    submissions to the CFPB complaint portal is largely due to
    third-party credit repair organizations filing disputes on
    “accurate but negative information to try to game the
    system.” On the issue of financial inclusion, Ms. Anderson
    highlighted her company’s new “game-changing” product
    (“Experian Boost”) that allows consumers to opt-in to
    report monthly payment information (e.g., for telephones
    and utilities) to their credit reports.

Primary Sources

  1. U.S. House Financial Services Committee Hearing:
    Consumer Credit Reporting – Assessing Accuracy and
    Compliance

  2. U.S. House Financial Services Committee
    Memorandum: Consumer Credit Reporting – Assessing Accuracy and
    Compliance

  3. Equifax Testimony, Beverly Anderson: Consumer
    Credit Reporting – Assessing Accuracy and Compliance

  4. Experian Testimony, Sandy Anderson: Consumer
    Credit Reporting – Assessing Accuracy and Compliance

  5. TransUnion Testimony, John Danaher: Consumer
    Credit Reporting – Assessing Accuracy and Compliance

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