On January 29th, 2020, the House of Representatives passed H.R. 3621, the Comprehensive CREDIT Act, which would reform the credit reporting industry to better protect consumers and ensure their credit reporting information is accurate and complete.  This legislation included H.R. 3629, the Clarity in Credit Score Formation Act , sponsored by Representative Stephen F. Lynch (MA-08), which would help improve the accuracy of credit scoring models by directing the Consumer Financial Protection Bureau (CFPB) to provide oversight and set fair and reliable standards for companies to use when generating consumer credit reports and scores.  More than 40 million American have incorrect information on their credit reports and H.R. 3629 would help ensure consumers’ credit scores are accurate and complete.

“I am very pleased to see the House passed my bill in the Comprehensive CREDIT Act,” said Rep. Lynch.  “Credit reports and scores have become an important part of American’s financial lives and consumers consistently face errors in their credit reports that impact important opportunities, such as housing purchases and other major financial decisions.  My bill will help ensure consumer’s credit scores are fair and free of discriminatory factors such as race and gender bias and helps empower consumers to have more control of their data.”

In July 2019, the Financial Services Committee passed critical legislation to reform credit reporting, credit scores and the credit reporting agencies, and in February 2019 they held a full Committee hearing entitled, “Who’s Keeping Score? Holding Credit Bureaus Accountable and Repairing a Broken System,” with the Chief Executive Officers of Equifax, Experian, and TransUnion.