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Credit Access and Inclusion Act

On Behalf of | Jan 9, 2014 | Consumer Protection

For consumers with an invisible credit history, help may be on
the way.  Presently, before Congress is the Credit Access and
Inclusion Act, a proposed amendment to modify the Fair Credit
Reporting Act
(“FCRA”) to include additional positive
information to consumer reports, like utility bills and rental

If you are one of millions of American consumers who do not have
a credit card or a mortgage loan you understand how difficult it is
to build your credit and getting credit when you have no credit is
next to impossible.  This double edged sword is precisely the
reason why Congress is considering this proposed bill, so that
credit-less consumers can show they are worthy of borrowing

The Act is fairly straight forward.  Because not all
consumers carry a credit card or own a home, their credit is
virtually non-existent.  By reporting a consumers utility
bills, like electricity, telephone, internet and cable service or
rental payments, previously invisible consumers can begin building a
credit history
and be considered credit worthy by banks and
financial institutions instead of a credit risk.  As it
stands, utility bills and rental payments are only currently
reported if a consumer is late on payments or if the consumer fails
to make rental payments at all.  Why should consumers be
punished for poor repayment habits and not rewarded for stellar

Allowing this bill to pass would provide groups like minorities,
college-age consumers and low-income consumers the opportunity to
enter into the financial world and be eligible for better loans
opportunities.  The assumption is that if you do not have a
credit history you are considered high risk and no one wants to
approve you for a loan or will only approve you at unreasonably
high interest rate.  Because consumers with minimal credit
history cannot get a loan they turn to payday loans and end up
destroying their chance at good credit.

Those in opposition of this bill argue that including utilities
on consumer reports will just open the door to more
inaccuracy.  As it stands consumers reports are full of errors
and those in opposition argue the additional information will end
up harming consumer reports and create more of a burden on
consumers to dispute the inaccuracies.

If you wish to discuss your
credit report
with a licensed attorney or receive more
information on the Credit Access and Inclusion Act contact SmithMarco P.C. for a free case