On June 29th, 2020, the Protecting Your Credit Score Act (H.R. 5332) was passed by the United States House of Representatives. This act will amend the federal FCRA to guarantee that consumer reporting agencies, such as Transunion, Experian, and Equifax, are giving fair and accurate information in consumer reports. The act will be making changes to strengthen the rights of consumers and increase the consumer data protection guidelines that reporting agencies must follow. This will increase the accountability of the agencies.
A study of the Frederal Trade Commission shows that approximately 21% of consumers had errors in their credit reports, 13% of those errors affected the consumers credit score, and 5% had errors that were serious enough to cause a credit denial. For the consumer, fixing this errors can be complicated and a full blown nightmare. The reporting agencies favor the side of the creditor and/or debt collector.
This new act takes a number of steps that will make it easier for consumers to fix the credit errors. It will also be easier to force the credit bureaus to reinvestigate the errors and fix the mistakes.
A few notes from the act include:
Establishing an online consumer portal landing page
This is a single online consumer portal that has free and unlimited access to their reports and credit scores.
It will increase credit report accuracy and transparency.
This will require Experian, Equifax, and Transunion to conduct preventative audits by matching ALL digits of the consumers social security number or the full legal name, date of birth, current address, and one previous address. The credit bureaus are known for only matching 7 of the 9 digits of the consumers social security number, which often results in a case of a mixed file.
It establishes a CFPB ombudsperson, or a public advocate to resolve these common errors made by reporting agencies.
Be sure to check your credit report frequently. Many people do not realize that they have an error in their credit report until they are trying to apply for credit. This can effect your ability to get a credit card, get a loan, buy a car, a home, and more.
If you have errors in your credit report, contact us for help. We can give you step by step guidance and let you know if you have a case!