FCRA Should Be Examined for Updates, CUNA Tells Financial Services Committee

CUNA supports the intent of the Fair Credit Reporting Act and its importance in ensuring consumers’ financial information is handled and used appropriately, it wrote to the House Financial Services Committee Tuesday, but noted several modernizations that could provide regulatory relief.

The committee conducted a hearing titled “Who’s Keeping Score? Holding Credit Bureaus Accountable and Repairing A Broken System” Tuesday. CUNA sent its letter for the hearing’s record.

Highlights of CUNA’s letter include:

  • Concerns about data security at credit reporting agencies (CRAs), especially following the data breach at Equifax that exposed information of more than 148 million American consumers, in addition to information from hundreds of thousands of payment cards. CUNA and several credit union leagues have filed a lawsuit against Equifax;
  • CUNA supports and encourages efforts to bolster consumer financial education, including through easy access to credit scores;
  • CUNA maintains there should be no statutory or regulatory requirement to use “alternative data” in lending determinations;
  • Congress should consider statutory changes, and encourage regulators, to thoroughly examine and update the regulatory framework implementing the FCRA. CUNA notes the Consumer Financial Protection Bureau could provide specific clarity on several matters; and
  • CUNA supports examination of the FCRA with an eye toward necessary updates and modernization to promote more clarity and flexibility for furnishers of information operating in good faith.