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      "title": "Consumer Credit Reporting, Credit Bureaus, Credit Scoring, and Related Policy Issues",
      "summary": "The consumer data industry\u2014generally referred to as credit reporting agencies or credit bureaus\u2014collects and subsequently provides information to firms about the behavior of consumers when they participate in various financial transactions. Firms use consumer information to screen for consumer risks. For example, lenders rely upon credit reports and scores to determine the likelihood that prospective borrowers will repay their loans. Insured depository institutions (i.e., banks and credit unions) rely on consumer data service providers to determine whether to make available checking accounts or loans to individuals. Some insurance companies use consumer data to determine what insurance products to make available and to set policy premiums. Some payday lenders use data regarding the management of checking accounts and payment of telecommunications and utility bills to determine the likelihood of failure to repay small-dollar cash advances. Merchants rely on the consumer data industry to determine whether to approve payment by check or electronic payment card. Employers may use consumer data information to screen prospective employees to determine the likelihood of fraudulent behavior. In short, numerous firms rely upon consumer data to identify and evaluate potential risks a consumer may pose before entering into a financial relationship with that consumer.\nGreater reliance by firms on consumer data significantly affects\u2014and potentially limits\u2014consumer access to financial products or opportunities. Specifically, negative or derogatory information, such as late payments, loan defaults, and multiple overdrafts, may stay on consumer reports for several years and lead firms to deny a consumer access to credit, a financial product, or a job opportunity. Having a nonexistent, insufficient, or stale credit history may also prevent credit access. \nAccordingly, various policy issues have been raised about the consumer data industry, most notably including the following:\nHow to address inaccurate or disputed consumer data provided in consumer data reports;\nHow long negative or derogatory information should remain in consumer data reports;\nHow to address differences in billing and collection practices that can adversely affect consumer data reports, an issue of particular concern with medical billing practices;\nHow to ensure that consumers are aware of their rights and how to exercise them in the event of a consumer data dispute;\nWhether uses of consumer data reports outside of the financial services, such as for employment decisions, adversely affect consumers and should be limited;\nWhether the use of alternative consumer data or newer versions of credit scores may increase accuracy and credit access; and\nHow to address data protection and security issues in consumer data reporting. \nCongress has shown continuing interest in these and other policy questions surrounding the consumer data industry, particularly in its regulation and whether such regulation currently provides sufficient protection to consumers. In the 116th Congress, the House passed H.R. 3621, the \u201cComprehensive Credit Reporting Enhancement, Disclosure, Innovation, and Transparency Act of 2020\u201d (Comprehensive CREDIT Act). This bill includes legislation from other bills marked up by the House Financial Services Committee: H.R. 3614, H.R. 3618, H.R. 3622, H.R. 3629, H.R. 3642. On March 27, in response to the coronavirus (COVID-19) pandemic, the President signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136). Section 4021 of the CARES Act addresses credit reporting during the pandemic.",
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      "title": "Consumer Credit Reporting, Credit Bureaus, Credit Scoring, and Related Policy Issues",
      "summary": "The consumer data industry\u2014generally referred to as credit reporting agencies or credit bureaus\u2014collects and subsequently provides information to firms about the behavior of consumers when they participate in various financial transactions. Firms use consumer information to screen for consumer risks. For example, lenders rely upon credit reports and scores to determine the likelihood that prospective borrowers will repay their loans. Insured depository institutions (i.e., banks and credit unions) rely on consumer data service providers to determine whether to make available checking accounts or loans to individuals. Some insurance companies use consumer data to determine what insurance products to make available and to set policy premiums. Some payday lenders use data regarding the management of checking accounts and payment of telecommunications and utility bills to determine the likelihood of failure to repay small-dollar cash advances. Merchants rely on the consumer data industry to determine whether to approve payment by check or electronic payment card. Employers may use consumer data information to screen prospective employees to determine the likelihood of fraudulent behavior. In short, numerous firms rely upon consumer data to identify and evaluate potential risks a consumer may pose before entering into a financial relationship with that consumer.\nGreater reliance by firms on consumer data significantly affects\u2014and potentially limits\u2014consumer access to financial products or opportunities. Specifically, negative or derogatory information, such as late payments, loan defaults, and multiple overdrafts, may stay on consumer reports for several years and lead firms to deny a consumer access to credit, a financial product, or a job opportunity. Having a nonexistent, insufficient, or stale credit history may also prevent credit access. \nAccordingly, various policy issues have been raised about the consumer data industry, most notably including the following:\nHow to address inaccurate or disputed consumer data provided in consumer data reports;\nHow long negative or derogatory information should remain in consumer data reports;\nHow to address differences in billing and collection practices that can adversely affect consumer data reports, an issue of particular concern with medical billing practices;\nHow to ensure that consumers are aware of their rights and how to exercise them in the event of a consumer data dispute;\nWhether uses of consumer data reports outside of the financial services, such as for employment decisions, adversely affect consumers and should be limited;\nWhether the use of alternative consumer data or newer versions of credit scores may increase accuracy and credit access; and\nHow to address data protection and security issues in consumer data reporting. \nCongress has shown continuing interest in these and other policy questions surrounding the consumer data industry, particularly in its regulation and whether such regulation currently provides sufficient protection to consumers. In the 116th Congress, the House Financial Services Committee marked up eight bills to address many of these concerns: H.R. 3614, H.R. 3618, H.R. 3621, H.R. 3622, H.R. 3629, H.R. 3642, H.R. 5332, and H.R. 5330. Topics covered under the first six of these bills were part of draft legislation\u2014the Comprehensive Credit Reporting Reform Act of 2019 (CCRRA)\u2014released by Chairwoman Maxine Waters in February 2019.",
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      "retrieved": "2019-07-26T22:18:51.455237",
      "title": "Consumer Credit Reporting, Credit Bureaus, Credit Scoring, and Related Policy Issues",
      "summary": "The consumer data industry\u2014generally referred to as credit reporting agencies or credit bureaus\u2014collects and subsequently provides information to firms about the behavior of consumers when they participate in various financial transactions. Firms use consumer information to screen for consumer risks. For example, lenders rely upon credit reports and scores to determine the likelihood that prospective borrowers will repay their loans. Insured depository institutions (i.e., banks and credit unions) rely on consumer data service providers to determine whether to make available checking accounts or loans to individuals. Some insurance companies use consumer data to determine what insurance products to make available and to set policy premiums. Some payday lenders use data regarding the management of checking accounts and payment of telecommunications and utility bills to determine the likelihood of failure to repay small-dollar cash advances. Merchants rely on the consumer data industry to determine whether to approve payment by check or electronic payment card. Employers may use consumer data information to screen prospective employees to determine the likelihood of fraudulent behavior. In short, numerous firms rely upon consumer data to identify and evaluate potential risks a consumer may pose before entering into a financial relationship with that consumer.\nGreater reliance by firms on consumer data significantly affects\u2014and potentially limits\u2014consumer access to financial products or opportunities. Specifically, negative or derogatory information, such as late payments, loan defaults, and multiple overdrafts, may stay on consumer reports for several years and lead firms to deny a consumer access to credit, a financial product, or a job opportunity. Having a nonexistent, insufficient, or stale credit history may also prevent credit access. \nAccordingly, various policy issues have been raised about the consumer data industry, most notably including the following:\nHow to address inaccurate or disputed consumer data provided in consumer data reports;\nHow long negative or derogatory information should remain in consumer data reports;\nHow to address differences in billing and collection practices that can adversely affect consumer data reports, an issue of particular concern with medical billing practices;\nHow to ensure that consumers are aware of their rights and how to exercise them in the event of a consumer data dispute;\nWhether uses of consumer data reports outside of the financial services, such as for employment decisions, adversely affect consumers and should be limited;\nWhether the use of alternative consumer data or newer versions of credit scores may increase accuracy and credit access; and\nHow to address data protection and security issues in consumer data reporting. \nCongress has shown continuing interest in these and other policy questions surrounding the consumer data industry, particularly in its regulation and whether such regulation currently provides sufficient protection to consumers. In the 116th Congress, the House Financial Services Committee marked up six bills to address many of these concerns: H.R. 3614, H.R. 3618, H.R. 3621, H.R. 3622, H.R. 3629, and H.R. 3642. Topics covered under these bills were part of draft legislation\u2014the Comprehensive Credit Reporting Reform Act of 2019 (CCRRA)\u2014released by Chairwoman Maxine Waters in February 2019.",
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      "id": 594937,
      "date": "2019-03-28",
      "retrieved": "2019-04-17T13:50:42.596906",
      "title": "Consumer Credit Reporting, Credit Bureaus, Credit Scoring, and Related Policy Issues",
      "summary": "The consumer data industry\u2014generally referred to as credit reporting agencies or credit bureaus\u2014collects and subsequently provides information to firms about the behavior of consumers when they participate in various financial transactions. Firms use consumer information to screen for the risk that consumers will engage in behaviors that are costly for businesses. For example, lenders rely upon credit reports and scores to determine the likelihood that prospective borrowers will repay their loans. Insured depository institutions (i.e., banks and credit unions) rely on consumer data service providers to determine whether to make available checking accounts or loans to individuals. Some insurance companies use consumer data to determine what insurance products to make available and to set policy premiums. Some payday lenders use data regarding the management of checking accounts and payment of telecommunications and utility bills to determine the likelihood of failure to repay small-dollar cash advances. Merchants rely on the consumer data industry to determine whether to approve payment by check or electronic payment card. Employers may use consumer data information to screen prospective employees to determine the likelihood of fraudulent behavior. In short, numerous firms rely upon consumer data to identify and evaluate potential risks a consumer may pose before entering into a financial relationship with that consumer.\nGreater reliance by firms on consumer data significantly affects\u2014and potentially limits\u2014consumer access to financial products or opportunities. Specifically, negative or derogatory information, such as late payments, loan defaults, and multiple overdrafts, may stay on consumer reports for several years and lead firms to deny a consumer access to credit, a financial product, or a job opportunity. Having a nonexistent, insufficient, or a stale credit history may also prevent credit access. \nAccordingly, various policy issues have been raised about the consumer data industry, most notably including the following:\nHow to address inaccurate or disputed consumer data provided in consumer data reports;\nHow long negative or derogatory information should remain in consumer data reports;\nHow to address differences in billing and collection practices that can adversely affect consumer data reports, an issue of particular concern with medical billing practices;\nHow to ensure that consumers are aware of their rights and how to exercise them in the event of a consumer data dispute;\nWhether uses of consumer data reports outside of the financial services, such as for employment decisions, adversely affect consumers and should be limited;\nWhether the use of alternative consumer data or newer versions of credit scores may increase accuracy and credit access; and\nHow to address data protection and security issues in consumer data reporting. \nCongress has shown continuing interest in these and other policy questions surrounding the consumer data industry, particularly in its regulation and whether such regulation currently provides sufficient protection to consumers. In the 116th Congress, legislation has been introduced to address many of these concerns. The Comprehensive Credit Reporting Reform Act of 2019 (CCRRA) and the Protecting Innocent Consumers Affected by a Shutdown Act, both released as drafts by Chairwoman Maxine Waters, would amend the Fair Credit Reporting Act (FCRA) and create additional laws to address these concerns. Other relevant bills introduced in the 116th Congress address topics such as credit reporting and cybersecurity (H.R. 331 and H.R. 1282); credit information used for auto insurance (H.R. 1756); and federal employees affected by the shutdown (H.R. 935, H.R. 799, H.R. 1286, and S. 535).",
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      "id": 585373,
      "date": "2018-09-13",
      "retrieved": "2018-10-05T22:25:10.698707",
      "title": "Consumer and Credit Reporting, Scoring, and Related Policy Issues",
      "summary": "The consumer data industry collects and subsequently provides information to firms about the behavior of consumers when they participate in various financial transactions. Firms use consumer information to screen for the risk that consumers will engage in behaviors that are costly for businesses. For example, lenders rely upon credit reports and scores to determine the likelihood that prospective borrowers will repay their loans. Insured depository institutions (i.e., banks and credit unions) rely on consumer data service providers to determine whether to make available checking accounts or loans to individuals. Some insurance companies use consumer data to determine what insurance products to make available and to set policy premiums. Some payday lenders use data regarding the management of checking accounts and payment of telecommunications and utility bills to determine the likelihood of failure to repay small-dollar cash advances. Merchants rely on the consumer data industry to determine whether to approve payment by check or electronic payment card. Employers may use consumer data information to screen prospective employees to determine the likelihood of fraudulent behavior. In short, numerous firms rely upon consumer data to identify and evaluate potential loss risks before entering into financial relationships with new consumers.\nCongress has shown concern about consumer protection and consumer credit access in light of various challenges facing the credit reporting industry. \nReporting inaccuracies may result in the rejection of consumer credit requests. \nNegative or derogatory information, such as multiple overdrafts, involuntary account closures, loan defaults, and fraud incidents, may stay on consumer reports for several years. Conversely, the exclusion of more positive or updated information, such as the timely repayment of noncredit obligations, may limit credit access. Having a nonexistent, insufficient, or a stale credit history may also prevent credit access.\nDifferences in billing and collection practices can also adversely affect the consumer reports, an issue of particular concern with medical billing practices. \nThe use of alternative or newer versions of credit scores, which have been developed in response to the above concerns, arguably may increase credit access. Implementing alternative scoring algorithms, however, takes time, and credit scores are only one factor among many that are used in lender underwriting decisions. \nThe Equifax breach, which was announced on September 7, 2017, has increased congressional interest in data protection and security issues. \nThis report discusses these issues and provides some background information on the consumer data industry as well as a general overview of the current regulatory framework. Greater reliance by firms on consumer data significantly affects consumer access to financial products or opportunities, prompting congressional concerns about consumer protection. The Economic Growth, Regulatory Relief, and Consumer Protection Act (P.L. 115-174) addresses some specific consumer protection challenges facing the industry. In addition, the Comprehensive Consumer Credit Reporting Reform Act of 2017 (H.R. 3755) would amend the Fair Credit Reporting Act to address consumer reporting and scoring concerns that could limit credit access. The PROTECT Act of 2017 (H.R. 4028) would establish cybersecurity supervision and examination of large consumer reporting agencies.",
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      "id": 575111,
      "date": "2017-11-03",
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      "title": "Consumer and Credit Reporting, Scoring, and Related Policy Issues",
      "summary": "The consumer data industry collects and subsequently provides information to firms about the behavior of consumers when they participate in various financial transactions. Firms use consumer information to screen for the risk that consumers will engage in behaviors that are costly for businesses. For example, lenders rely upon credit reports and scores to determine the likelihood that prospective borrowers will repay their loans. Insured depository institutions (i.e., banks and credit unions) rely on consumer data service providers to determine whether to make available checking accounts or loans to individuals. Some insurance companies use consumer data to determine what insurance products to make available and to set policy premiums. Some payday lenders use data regarding the management of checking accounts and payment of telecommunications and utility bills to determine the likelihood of failure to repay small-dollar cash advances. Merchants rely on the consumer data industry to determine whether to approve payment by check or electronic payment card. Employers may use consumer data information to screen prospective employees to determine the likelihood of fraudulent behavior. In short, numerous firms rely upon consumer data to identify and evaluate potential loss risks before entering into financial relationships with new consumers.\nCongress has shown concern about consumer protection and consumer credit access in light of various challenges facing the credit reporting industry. \nReporting inaccuracies may result in the rejection of consumer credit requests. \nNegative or derogatory information, such as multiple overdrafts, involuntary account closures, loan defaults, and fraud incidents, may stay on consumer reports for several years. Conversely, the exclusion of more positive or updated information, such as the timely repayment of non-credit obligations, may limit credit access. Having a non-existent, insufficient, or a stale credit history may also prevent credit access.\nDifferences in billing and collection practices can also adversely affect the consumer reports, an issue of particular concern with medical billing practices. \nThe use of alternative or newer versions credit scores, which have been developed in response to the above concerns, arguably may increase credit access. Implementing alternative scoring algorithms, however, takes time, and credit scores are only one factor among many that are used in lender underwriting decisions. \nThe Equifax breach, which was announced on September 7, 2017, has increased congressional interest in data protection and security issues. \nThis report discusses these issues and provides some background information on the consumer data industry as well as a general overview of the current regulatory framework.\nGreater reliance by firms on consumer data greatly affects consumer access to financial products or opportunities, prompting congressional concerns about consumer protection. The Comprehensive Consumer Credit Reporting Reform Act of 2017 (H.R. 3755) would amend the Fair Credit Reporting Act to address consumer reporting and scoring concerns that could limit credit access. The PROTECT Act of 2017 (H.R. 4028) would establish cybersecurity supervision and examination of large consumer reporting agencies.",
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      "topics": [
        {
          "source": "IBCList",
          "id": 4775,
          "name": "Consumer Finance Protection"
        }
      ]
    },
    {
      "source": "EveryCRSReport.com",
      "id": 443449,
      "date": "2015-07-30",
      "retrieved": "2016-04-06T18:42:07.844584",
      "title": "Consumer and Credit Reporting, Scoring, and Related Policy Issues",
      "summary": "The consumer data industry collects and subsequently provides information to firms about the behavior of consumers when they participate in various financial transactions. Firms use consumer information to screen for the risk that consumers will engage in behaviors that are costly for businesses. For example, lenders rely upon credit reports and scores to determine the likelihood that prospective borrowers will repay their loans. Insured depository institutions (i.e., banks and credit unions) rely on consumer data service providers to determine whether to make available checking accounts or loans to individuals. Some insurance companies use consumer data to determine what insurance products to make available and to set policy premiums. Some payday lenders use data regarding the management of checking accounts and payment of telecommunications and utility bills to determine the likelihood of failure to repay small-dollar cash advances. Merchants rely on the consumer data industry to determine whether to approve payment by check or electronic payment card. Employers may use consumer data information to screen prospective employees to determine the likelihood of fraudulent behavior. In short, numerous firms rely upon consumer data to identify and evaluate potential loss risks before entering into financial relationships with new consumers.\nCongress has shown concern about consumer protection and consumer credit access in light of some challenges facing the credit reporting industry. First, reporting inaccuracies may result in the rejection of consumer credit requests. Second, negative or derogatory information, such as multiple overdrafts, involuntary account closures, loan defaults, and fraud incidents, may stay on consumer reports for several years. Likewise, the exclusion of more positive or updated information, such as the timely repayment of non-credit obligations, may also limit credit access. Differences in billing and collection practices can also adversely affect the consumer reports, an issue of particular concern with medical billing practices. Having a non-existent, insufficient, or a stale credit history may also prevent credit access. The use of alternative or newer versions credit scores, which have been developed in response to these concerns, arguably may increase credit access. It takes time, however, to implement alternative scoring algorithms, and credit scores are only one factor among many that are used in lender underwriting decisions. These issues are discussed in this report after some background information on the consumer data industry as well as a general overview of the current regulatory framework has been provided.\nGreater reliance by firms on consumer data greatly affects consumer access to financial products or opportunities, prompting congressional concerns about consumer protection. The Facilitating Access to Credit Act of 2015 (H.R. 347) would enhance the ability of consumer reporting firms to correct inaccuracies by clarifying the applicability of existing consumer legal protections. The Medical Debt Relief Act of 2015 (H.R. 2362) would exclude from consumer credit reports certain medical debt that is less than 180 days delinquent or that has been in collections and has been fully paid or settled. The Federal Adjustment in Reporting (FAIR) Student Credit Act of 2015 (H.R. 2363) would allow a consumer to request the removal of a reported default on a qualified education loan if the consumer voluntarily and successfully meets the requirements of a private loan rehabilitation program.",
      "type": "CRS Report",
      "typeId": "REPORTS",
      "active": true,
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          "url": "http://www.crs.gov/Reports/R44125",
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          "url": "http://www.crs.gov/Reports/pdf/R44125",
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      ],
      "topics": [
        {
          "source": "IBCList",
          "id": 3199,
          "name": "Community and Regional Economic Development"
        },
        {
          "source": "IBCList",
          "id": 3451,
          "name": "Financial Market Regulation"
        }
      ]
    }
  ],
  "topics": [
    "Economic Policy",
    "Education Policy"
  ]
}