The House of Representatives yesterday passed a series of bills aimed at reforming credit reporting, including prohibiting the reporting of healthcare debts for procedures deemed to be medically necessary, and reducing the amount of time that late payments stay on an individual’s credit report.
The six bills that were passed by the House along party lines and sent to the Senate are:
- H.R. 3621 – Student Borrower Credit Improvement Act
- H.R. 3614 – Restricting Credit Checks for Employment Decisions Act
- H.R. 3618 – Free Credit Scores for Consumers Act of 2019
- H.R. 3622 – Restoring Unfairly Impaired Credit and Protecting Consumers Act
- H.R. 3629 – Clarity in Credit Score Formation Act of 2019
- H.R. 3642 – Improving Credit Reporting for All Consumers Act
Critics of the bill were quick to point out how the bills will weaken the financial system, including collections.
“This is a Democrat bill under the guise of consumer protection that will destroy the accuracy and completeness of consumer credit files. This will lead to a weaker financial system, undermining a great deal of safety and soundness that we have built up over decades,” Rep. Patrick McHenry [R-N.C.], the ranking member of the House Financial Services Committee, said during floor debate, according to a published report. “This will, in essence, socialize credit scoring and therefore credit allocation. And, look, this is an election year. I see that. And I see that not just in the rhetoric here in the house, but in the legislation that’s before us today. This bill will weaken underwriting standards. It will make credit a riskier activity both impacting the cost and accessibility of credit for all Americans.”
It is unlikely that the bills will gain any traction in the Senate.
