April 10, 2014

'Stop Errors' proposal targets credit reports

April 11, 2014 – Sens. Sherrod Brown, D-Ohio, and Brian Schatz, D-Hawaii, announced on Wednesday proposed legislation to make it easier for consumers to correct, dispute or access credit scores.

The "Stop Errors in Credit Use and Reporting (SECURE) Act" would build on a proposal from Sen. Bernie Sanders, I-Vt., which aimed to provide consumers with free access to credit scores. The Brown-Schatz proposal would:

  • require CFPB to develop procedures for credit reporting agencies regarding accuracy;
  • ensure agencies give creditors information about a consumer's claim about a report error;
  • require that consumers be provided a free copy of their report if an unfavorable decision is based on it;
  • include a free credit score with consumers' annual free credit reports; and
  • allow courts to stop credit reporting agencies from reporting inaccurate information and permit the Federal Trade Commission to intervene.

Brown said, ""In today's economy, it is critical that consumers have access to a safe and reliable way of checking their credit reports and scores. This legislation ensures consumers have the resources they need to correct credit report errors that could potentially impact future employment opportunities, credit applications, and other transactions that require a good credit score."

NAFCU is reviewing the proposed legislation for its potential impact on the credit union industry.

CFPB this year kept at $11.50 the cap on fees credit reporting agencies can charge consumers for more than one copy of their credit reports. (Consumers can request one free report every 12 months.) CFPB also issued a bulletin last year detailing credit report information furnishers' responsibilities in addressing complaints from consumers about their credit reports.