The FIX Credit Reporting Errors Act introduced by U.S. Senators Amy Klobuchar(D-MN) and Steve Daines (R-MT) 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.
“As so many people know, one mistake on a credit report that’s not your mistake — but it’s a company’s mistake can affect your credit for years. Then you can’t buy a car, you can’t get a loan.”
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.
Klobuchar was an original cosponsor of the bipartisan Fair Access to Credit Scores Act of 2010 that would have required credit reporting agencies to provide a free annual credit score along with a consumer’s free annual credit report. Following a report by the Federal Trade Commission (FTC) that found that over 25% of consumers’ credit reports contain major errors, often leading to less favorable loan terms or denial of credit, Klobuchar wrote a letter in 2013 to the three major credit rating agencies urging them to take immediate steps to fix reporting errors and ensure accurate credit reports. Klobuchar and Daines also introduced the FIX Credit Reporting Errors Act last Congress.
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