U.S. SENATE —U.S. Senators Steve Daines (R-MT) and Amy Klobuchar (D-MN) introduced bipartisan legislation to protect victims of credit reporting error.
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.
“Buying a home is difficult enough without having to worry about inaccuracies in your credit report which adds stress and in many cases will delay the purchase of the home,” Daines stated. “What’s worse, credit reporting errors can easily inflate mortgage payments by thousands of dollars over the lives of loans. This bipartisan bill will help consumers by increasing transparency and make it easier for them to fix faulty errors in their credit report.”
Daines and Klobuchar also introduced the FIX Credit Reporting Errors Act last Congress.