A bill has been introduced in the House of Representatives that would amend the Fair Credit Reporting Act to install additional protections for servicemembers on active duty or who are deployed in a combat zone or on a ship.
The bill, H.R. 3439, the Fair Credit Reporting for Servicemembers Act, was introduced last Thursday by Rep. Linda Sanchez [D-Calif.]. This is the third time that Rep. Sanchez has introduced the proposed legislation in the House of Representatives. During the most recent Congressional session, the bill passed in the House of Representatives as part of the Comprehensive Credit Act of 2020, but did not pass in the Senate.
Essentially, the bill would allow servicemembers to dispute any information, especially negative items, that were placed on their credit report while they are on active duty or extended active duty. If disputed, credit reporting agencies would be required to delete the adverse item and notify the furnisher and the consumer of the deletion.
The goal of the legislation is to help servicemembers obtain loans and access to credit when they leave the military, Rep. Sanchez said. Many servicemembers are unable to start and grow businesses because of negative items that appear on their credit report while they are deployed or on active duty.
“America’s service members devote years of their lives to protecting and defending this country,” said Rep. Sanchez, in a statement
