House bill would undermine usefulness of credit reports

Excerpted from ABA Banking Journal

In a letter to House leadership today, the American Bankers Association expressed its opposition for H.R. 5332. Introduced by Rep. Josh Gottheimer (D-N.J.), the Protecting Your Credit Score Act of 2020 is scheduled to be considered this week. While well-intentioned, ABA noted, the current text of the bill would “make credit reports less predictive and useful by promoting the elimination of negative but accurate information that will weaken the underwriting process and thus increase borrowers’ costs and reduce people’s ability to get loans.”

ABA added that the bill would allow courts to award injunctive relief, which could lead to questionable lawsuits and inconsistent interpretations. The association added that the Fair Credit Reporting Act already provides consumers with strong dispute rights and a framework for promptly resolving such disputes.
For entire article click here