02/26/2019 - Who's Keeping Score? Holding Credit Bureaus Accountable and... (EventID=108945)

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Tuesday, February 26, 2019 (10:00 AM) -- Committee on Financial Services Hearing: "Who's Keeping Score? Holding Credit Bureaus Accountable and Repairing a Broken System" Connect with the House Financial Services Committee Get the latest news: https://financialservices.house.gov/ Follow us on Facebook: https://www.facebook.com/FinancialDems/ Follow us on Twitter: https://twitter.com/FSCDems ______________ This will be a two-panel hearing with the following witnesses: Panel One • Mr. Mark Begor, CEO, Equifax • Mr. James M. Peck, President and CEO, TransUnion • Mr. Craig Boundy, CEO, Experian North America Panel Two • Ms. Lisa Rice, President and CEO, National Fair Housing Alliance (NFHA) • Ms. Chi Chi Wu, Staff Attorney, National Consumer Law Center (NCLC) • Ms. Jennifer Brown, Associate Director, Economic Policy, UnidosUS • Mr. Edmund Mierzwinski, Consumer Program Director, U.S. Public Interest Research Group (PIRG) • Mr. Thomas P. Brown, Partner, Paul Hastings Overview Our nation’s credit reporting system has an impact on almost every American. Credit scores and credit reports are increasingly relied upon by creditors, employers, insurers, and even law enforcement. Yet it has been more than 15 years since Congress enacted comprehensive reform of the consumer reporting system, and there are numerous shortcomings with the current system that need to be addressed. In 2017, Equifax experienced a cybersecurity breach so massive that it affected approximately 148 million consumers, which, in addition to releasing the personally identifiable information of approximately half of all Americans, also highlighted deficiencies in the credit reporting system. Furthermore, many have experienced financial and other forms of distress due to incomplete or erroneous information on their consumer credit reports. While a few provisions intended to improve the consumer reporting system were enacted into law last year, some have argued for comprehensive reforms to make the system more consumeroriented. Other jurisdictions, like California and the European Union, have taken steps to empower consumers to have more control over their data. Chairwoman Maxine Waters (D-CA) has two legislative proposals that will be discussed at the hearing. The first is a discussion draft entitled the “Comprehensive Consumer Credit Reform Act of 2019.” The proposal makes numerous changes to the existing credit reporting system, including increasing consumer rights to report and appeal credit report disputes, and better assisting those consumers struggling with medical debt, abusive and predatory loan products, and private student debt. The second discussion draft is cosponsored by Reps. Gregory Meeks (D-NY), Brad Sherman (D-CA), Jennifer Wexton (DVA), and Jesús “Chuy” García (D-IL), and is entitled the “Protecting Innocent Consumers Affected by a Shutdown Act.” The proposal is designed to assist federal employees, contractors, and other consumers adversely impacted by a Federal government shutdown by preventing adverse information resulting from a temporary lack of income, through no fault of their own, from ruining their credit profiles and future credit prospects. Background The Fair Credit Reporting Act (FCRA) – as amended by various statutes, including the Fair and Accurate Credit Transactions (FACT) Act of 2003, the Dodd-Frank Wall Street Reform and Consumer Protection (Dodd-Frank) Act of 2010, and the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) of 2018 – provides the legal framework for the consumer credit reporting system, including limits on how consumer reporting agencies (CRAs) disclose credit report information. The Consumer Financial Protection Bureau (Consumer Bureau) and the Federal Trade Commission (FTC) share jurisdiction in implementing and enforcing FCRA. Furthermore, CRAs are also subject to the data protection requirements of Section 501(b) of the Gramm-Leach-Bliley Act (GLBA), which mandate appropriate safeguards to maintain the security and confidentiality of consumer records and information, as well as to protect against unauthorized access or use of such records or information which could result in substantial harm or inconvenience to any customer. The FTC has the authority to enforce Section 501(b) for CRAs. The FTC has little upfront supervisory or enforcement authority, so the agency typically uses its enforcement authority after an incident occurs... CRAs are defined under the law as any person in the practice of assembling or evaluating consumer credit information, or other consumer information, for the purpose of furnishing consumer reports to third parties and who uses any means of interstate commerce to do so. CRAs are required to have reasonable procedures in place to ensure the maximum possible accuracy of information contained in consumer files. While there are only three nationwide CRAs... https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=402343