A report by the Federal Trade Commission found that millions of consumer credit reports contain mistakes and errors, often leading to less favorable loan terms or denial of credit; Resolving these errors can take a long time and many consumers have incorrect information on their credit reports as they go through the dispute process
The FIX Credit Reporting Errors Act would require credit reporting agencies to forward any documents the consumer has provided as evidence in their dispute to parties seeking their credit score
Washington, DC – U.S. Senators Steve Daines (R-MT) and Amy Klobuchar (D-MN) today introduced bipartisan legislation to help consumers correct errors on their credit reports. A report by the Federal Trade Commission (FTC) found that millions of consumer credit reports contain mistakes and errors, often leading to less favorable loan terms or denial of credit. Resolving these errors can take a long time and many consumers have incorrect information on their credit reports as they go through the dispute process. The FIX Credit Reporting Errors Act would require credit reporting agencies to forward any documents the consumer has provided as evidence in their dispute to parties seeking the consumer’s credit score. For example, if a credit report erroneously showed that a consumer had an outstanding balance on a credit card that was closed, the consumer would be able to include in their credit report the letter from the credit card company stating the account is closed and paid in full.
“Too many Montanans have been the victims of identity theft and are left with few options during the dispute resolution process,” Daines stated. “This bill restores fair access to credit and empowers victims to get back on their feet and pursue the American dream.”
“A small mistake on a credit report can have devastating consequences for families that find themselves facing higher interest rates or being denied a mortgage,” Klobuchar said. “This commonsense legislation will help ensure that Americans have the tools they need to correct errors on their credit reports so that they can continue their lives without an inaccurate credit report holding them back.”
Credit reporting agencies have been criticized in the past for performing lackluster investigations and providing little additional documentation to parties seeking a consumer’s credit score. This bill would allow consumers to take proactive steps to correct their credit reports.
###