House of Representatives Passes New Credit Reporting Legislation

Today, the House of Representatives passed the Comprehensive Credit Reporting Enhancement, Disclosure, Innovation, and Transparency (CREDIT) Act (H.R. 3621), introduced by Rep. Ayanna Pressley. While the CREDIT Act—which still needs to go through the Senate—is primarily aimed at credit reporting agencies (CRAs) such as Equifax, Experian, and TransUnion, its impact will likely be felt among data furnishers.

The CREDIT Act points out how important accurate credit reports are to consumers for both banking and non-banking needs. The Act claims that:

The nationwide CRAs have failed to establish and follow reasonable procedures, as required by existing law, to establish the maximum level of accuracy of information contained on consumer reports. Given the repeated failures of these CRAs to comply with accuracy requirements on their own, [this] legislation is intended to provide them with detailed guidance improving the accuracy and completeness of information contained in consumer reports, including procedures, policies, and practices that these CRAs should already be following to ensure full compliance with their existing obligations.

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