Congressional Record, House, June 26, 2020 — Protecting Your Credit Score Act and H.J. Res. 90
Summary
Pages H2559 and H2560 of the Congressional Record, House, June 26, 2020. The pages open with a floor exchange among Mr. FERGUSON, Mr. HOYER and Mr. CLYBURN about the response to COVID-19, including nursing homes and the President. Ms. WATERS then calls up the bill H.R. 5332 under House Resolution 1017, to amend the Fair Credit Reporting Act. The printed text of the Protecting Your Credit Score Act has a table of contents, and Section 2 would have consumer reporting agencies develop an online consumer portal landing page giving each consumer free access to the consumer report.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Congressional Record, House, June 26, 2020 — Protecting Your Credit Score Act and H.J. Res. 90.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crec-crec-2020-06-26-crec-2020-06-26-pt1-pgh2559-6a12c36a15/
, SHA-256 bf7eab6a3ae77c5e2621d0a8f77ac937b2caa912d2ab29a7ed7bb961f1f68d1f.Full text
June 26, 2020 CONGRESSIONAL RECORD — HOUSE H2559
I can’t tell you when the spike in the Because he said it was a hoax, people amendment in the nature of a sub-
numbers of people who are getting sick thought they didn’t have to worry stitute recommended by the Com-
or people who are dying is going to end. about it. I tell my friend from Georgia, mittee on Financial Services, printed
But I can tell you that we will be a hoax. He is a gentlemen who refuses in the bill, modified by the amendment
very sensitive to the risks, and we will to set the example of wearing a mask, printed in part C of House Report 116–
act accordingly. which the science and medical people 436, is adopted, and the bill, as amend-
Mr. FERGUSON. Well, certainly, we say we ought to do, a gentleman who ed, is considered read.
want to be safe and thoughtful about really shunted aside much of the The text of the bill, as amended, is as
what we do. But I think America—I science and medical advice that he got. follows:
think we have done an excellent job of So I tell the gentleman we hope that H.R. 5332
what we set out to do, which was not to the President is as concerned as my Be it enacted by the Senate and House of Rep-
stop the spread of this virus, but it was friend has stated he is, and I know that resentatives of the United States of America in
to slow the spread of the virus. I am and I think all of our Members Congress assembled,
Not a single one of us, not a single are. SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
person in America, wanted to see one Mr. FERGUSON. Madam Speaker, re- (a) SHORT TITLE.—This Act may be cited as
of our fellow Americans suffer because claiming my time, I am certainly glad the ‘‘Protecting Your Credit Score Act of 2020’’.
there was no room for them in a to hear that my colleague from Mary- (b) TABLE OF CONTENTS.—The table of con-
healthcare facility where they needed land is truly committed to making tents for this Act is as follows:
it. And I think that we have done that. sure that every single American stays Sec. 1. Short title; table of contents.
I think America has shown that they Sec. 2. Establishment of online consumer portal
as safe as they possibly can. When
have had the discipline to say at home landing page for consumer access
those incidents occurred where rules to certain credit information.
and to bend the infection rate curve were violated, regulations were dis- Sec. 3. Accuracy in consumer reports.
down. regarded, there was, in fact, harm Sec. 4. Improved dispute process for consumer
So, sure, there will be more Ameri- caused to our fellow Americans. reporting agencies.
cans that contract COVID. But thank I tell my friend I am glad to know he Sec. 5. Injunctive relief.
goodness that our healthcare system is is as committed to getting to the bot- Sec. 6. Increased transparency.
strong enough and intact that we have Sec. 7. Consumer reporting agency registry.
tom of that as well, because I believe Sec. 8. Authority of Bureau with respect to con-
the capacity to take care of the most he is a man of honor and integrity. I
vulnerable. sumer reporting agencies.
believe his commitment to lead it to Sec. 9. Bureau standards for protecting non-
Speaking of that, I think, as I have
going to where the data and facts are, public information.
watched a lot of the news, a lot of the Sec. 10. Report on data security risk assess-
I tell my friend I am awfully glad to
data, I am very, very, very concerned ments in examinations of con-
hear that.
about the most vulnerable in our Na- Mr. HOYER. Will the gentleman sumer reporting agencies.
tion. I think one of the most horrific Sec. 11. GAO study on the use of social security
yield?
things that has happened seems to be numbers.
Mr. FERGUSON. I yield to the gen-
the blatant disregard for rules from tleman from Maryland.
SEC. 2. ESTABLISHMENT OF ONLINE CONSUMER
PORTAL LANDING PAGE FOR CON-
CDC and CMS by some Governors, Mr. HOYER. Madam Speaker, I hope SUMER ACCESS TO CERTAIN CREDIT
where they returned COVID-positive the gentleman has as high an expecta- INFORMATION.
patients to the nursing homes, where tion for the President of the United (a) IN GENERAL.—Section 612(a)(1) of the Fair
they were able to infect the most vul- States as he has of others. Credit Reporting Act (15 U.S.C. 1681j(a)(1)) is
nerable. Mr. FERGUSON. Oh, Madam Speak- amended by adding at the end the following:
So, I would ask the majority leader, er, not only is there an expectation, ‘‘(D) ONLINE CONSUMER PORTAL LANDING
do you think that there will be legisla- PAGE.—
there is gratitude for the work that the ‘‘(i) IN GENERAL.—Not later than 1 year after
tion considering how to protect our pa- President and the administration have the date of enactment of this subparagraph,
tients in nursing homes and also to done to get information out, to expand each consumer reporting agency described in
really hold those accountable that vio- testing, to go out to make sure that section 603(p) shall jointly develop an online
lated the rules and were reckless with the resources were delivered to our col- consumer portal landing page that gives each
our fellow Americans’ lives? leagues in the great State of New York, consumer unlimited free access to—
Mr. HOYER. Will the gentleman from ‘‘(I) the consumer report of the consumer;
resources there to build extra hospital
Georgia yield? ‘‘(II) the means by which the consumer may
Mr. FERGUSON. I yield to the gen- beds that nursing home patients could exercise the rights of the consumer under sub-
tleman. have gone to but, unfortunately, were paragraph (E) and section 604(e);
Mr. HOYER. I hesitate to ask the sent back to their nursing homes. ‘‘(III) the ability to initiate a dispute with the
gentleman a question I don’t know the Yes, I am grateful not only for his consumer reporting agency regarding the accu-
answer to, so I won’t. But I don’t know commitment to America, but I am racy or completeness of any information in a re-
grateful for the fact that he has helped port in accordance with section 611(a) or
which Governors the gentleman is 623(a)(8);
talking about. But I will, certainly, lead this country and will continue to
‘‘(IV) the ability to place and remove a secu-
want to find that out from the gen- lead this country back. So, yes, we
rity freeze on a consumer report for free under
tleman at some point in time. should all expect a lot of ourselves. We section 605A(i) and (j);
Mr. FERGUSON. Reclaiming my should be committed to the greatness ‘‘(V) if the consumer reporting agency offers a
time for just a minute, sir, I would of this country, as I know that we all product to consumers to prevent access to the
refer you to the special committee led are. consumer report of the consumer for the purpose
by the gentleman from South Carolina, Madam Speaker, I yield back the bal- of preventing identity theft, a disclosure to the
ance of my time. consumer regarding the differences between that
Mr. CLYBURN. And I would refer you to product and a security freeze as defined under
the data that is coming out of that f
section 605A(i) or (j);
committee that clearly indicates where PROTECTING YOUR CREDIT SCORE ‘‘(VI) information on who has accessed the
those particular States are. ACT OF 2019 consumer report of the consumer over the last 24
Mr. HOYER. Let me tell the gen- months, and, as available, for what permissible
tleman that we certainly intend to Ms. WATERS. Madam Speaker, pur- purpose the consumer report was furnished in
continue, as I said, to try to protect suant to House Resolution 1017, I call accordance with section 604 and section 609; and
the American people. A lot of people up the bill (H.R. 5332) to amend the ‘‘(VII) the credit score of the consumer in ac-
have died. Over 122,000 people have Fair Credit Reporting Act to ensure cordance with section 609(f)(7).
that consumer reporting agencies are ‘‘(ii) NO WAIVER.—A consumer reporting agen-
rfrederick on DSKBCBPHB2PROD with HOUSE
died. cy described in section 603(p) may not require a
Mr. FERGUSON. And every one is a providing fair and accurate informa-
consumer to waive any legal or privacy rights to
tragic loss. tion reporting in consumer reports, and
access—
for other purposes, and ask for its im- ‘‘(I) a portal established under this subpara-
b 1515 mediate consideration in the House. graph; or
Mr. HOYER. The President of the The Clerk read the title of the bill. ‘‘(II) any of the services described in clause (i)
United States said this virus was a The SPEAKER pro tempore. Pursu- that are provided through a portal established
hoax. ant to House Resolution 1017, the under this subparagraph.
VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00041 Fmt 4636 Sfmt 6333 E:\CR\FM\K26JN7.059 H26JNPT1
H2560 CONGRESSIONAL RECORD — HOUSE June 26, 2020
‘‘(iii) NO ADVERTISING OR SOLICITATIONS.—A (b) BUREAU CREDIT REPORTING the consumer complaint database of the Bureau
portal established under this subparagraph may OMBUDSPERSON.—Section 611(a) of the Fair or the State attorney general for the State in
not contain any advertising, marketing offers, Credit Reporting Act (15 U.S.C. 1681i(a)) is which the consumer resides;’’;
or other solicitations. amended by adding at the end the following: (C) by striking paragraph (7) and redesig-
‘‘(iv) EXTENSION.—The Bureau may allow the ‘‘(8) BUREAU CREDIT REPORTING nating paragraph (8) as paragraph (7); and
consumer reporting agencies an extension of 1 OMBUDSPERSON.— (D) in paragraph (7), as so redesignated, by
year to develop the online consumer portal land- ‘‘(A) IN GENERAL.—Not later than 180 days striking ‘‘paragraphs (2), (6), and (7)’’ and in-
ing page required under clause (i). after the date of enactment of this paragraph, serting ‘‘paragraphs (2) and (6)’’; and
‘‘(v) RULE OF CONSTRUCTION.—Nothing in this the Bureau shall establish the position of credit (2) by adding at the end the following new
subparagraph may be construed as requiring a reporting ombudsperson, whose specific duties subsection:
consumer reporting agency to disclose confiden- shall include carrying out the Bureau’s respon- ‘‘(h) NOTIFICATION OF DELETION OF INFORMA-
tial proprietary information through the online sibilities with respect to— TION.—A consumer reporting agency described
consumer portal landing page. ‘‘(i) resolving persistent errors that are not re- in section 603(p) shall communicate with other
‘‘(E) OPT-OUT OPTION.— solved in a timely manner by a consumer report- consumer reporting agencies described in section
‘‘(i) IN GENERAL.—If a consumer reporting ing agency; and 603(p) to ensure that a dispute initiated with
agency sells consumer information in a manner ‘‘(ii) enhancing oversight of consumer report- one consumer reporting agency is noted in a file
that is not included in a consumer report, the ing agencies by— maintained by such other consumer reporting
consumer reporting agency shall provide each ‘‘(I) advising the Director of the Bureau, in agencies.’’.
consumer with a method (through a website, by consultation with the Office of Enforcement and SEC. 5. INJUNCTIVE RELIEF.
phone, or in writing) by which the consumer the Office of Supervision of the Bureau, on any (a) IN GENERAL.—The Fair Credit Reporting
may elect, free of charge, to not have the infor- potential violations of paragraph (5) or any Act (15 U.S.C. 1681 et seq.) is amended—
mation of the consumer so sold. other applicable law by a consumer reporting (1) in section 616 (15 U.S.C. 1681n)—
‘‘(ii) NO EXPIRATION.—An election made by a agency, including appropriate corrective action (A) in subsection (a), by amending the sub-
consumer under clause (i) shall expire on the for such a violation; and section heading to read as follows: ‘‘DAMAGES’’;
date on which the consumer expressly revokes ‘‘(II) making referrals to the Office of Super- (B) by redesignating subsections (c) and (d) as
the election through a website, by phone, or in vision for supervisory action or the Office of En- subsections (d) and (e), respectively; and
writing.’’. forcement for enforcement action, as appro- (C) by inserting after subsection (b) the fol-
(b) CONFORMING AMENDMENT.—Section priate, in response to violations of paragraph (5) lowing:
612(f)(1) of the Fair Credit Reporting Act (15 or any other applicable law by a consumer re- ‘‘(c) INJUNCTIVE RELIEF.—
U.S.C. 1681j(f)(1)) is amended, in the matter pre- porting agency. ‘‘(1) IN GENERAL.—In addition to any other
ceding subparagraph (A), by adding ‘‘or that is ‘‘(B) REPORT.—The ombudsperson shall sub- remedy under this section, a court may award
made through the online consumer portal land- mit to the Committee on Financial Services of injunctive relief to require compliance with the
ing page established under subsection the House of Representatives and the Committee requirements imposed under this title with re-
(a)(1)(D),’’ after ‘‘subsections (a) through (d),’’. on Banking, Housing, and Urban Affairs of the spect to any consumer.
SEC. 3. ACCURACY IN CONSUMER REPORTS. Senate an annual report including statistics and ‘‘(2) ATTORNEY’S FEES.—In the event of any
Section 607(b) of the Fair Credit Reporting Act analysis on consumer complaints the Bureau re- successful action for injunctive relief under this
(15 U.S.C. 1681e) is amended to read as follows: ceives relating to consumer reports, as well as a subsection, a court may award to the prevailing
‘‘(b) ENSURING ACCURACY.— summary of the supervisory actions and enforce- party reasonable attorney’s fees (as determined
‘‘(1) IN GENERAL.—In preparing a consumer ment actions taken with respect to consumer re- by the court) incurred by the prevailing party
report, each consumer reporting agency shall porting agencies during the year covered by the during the action.’’; and
follow reasonable procedures to assure maximum report.’’. (2) in section 617 (15 U.S.C. 1681o)—
possible accuracy of the information concerning (c) RESPONSIBILITIES OF CONSUMER REPORTING (A) in subsection (a), in the subsection head-
the consumer to whom the report relates. AGENCIES.—Section 611 of the Fair Credit Re- ing, by striking ‘‘(a) IN GENERAL.—’’ and insert-
‘‘(2) MATCHING INFORMATION IN A FILE.—In porting Act (15 U.S.C. 1681i) is amended— ing ‘‘(a) DAMAGES.—’’;
assuring the maximum possible accuracy under (1) in subsection (a)— (B) by redesignating subsection (b) as sub-
paragraph (1), each consumer reporting agency (A) in paragraph (1), by adding at the end the section (c); and
described in section 603(p) shall ensure that, following: (C) by inserting after subsection (a) the fol-
when including information in the file of a con- ‘‘(D) OBLIGATIONS OF CONSUMER REPORTING lowing:
sumer, the consumer reporting agency— AGENCIES RELATING TO REINVESTIGATIONS.—Com- ‘‘(b) INJUNCTIVE RELIEF.—
‘‘(A) matches all 9 digits of the social security mensurate with the volume and complexity of ‘‘(1) IN GENERAL.—In addition to any other
number of the consumer with the information disputes about which a consumer reporting remedy under this section, a court may award
that the consumer reporting agency is including agency receives notice, or reasonably anticipates injunctive relief to require compliance with the
in the file; or to receive notice, under this paragraph, each requirements imposed under this title with re-
‘‘(B) if a consumer does not have a social se- consumer reporting agency shall— spect to any consumer.
curity number, matches information that in- ‘‘(i) maintain sufficient personnel to conduct ‘‘(2) ATTORNEY’S FEES.—In the event of any
cludes the full legal name, date of birth, current reinvestigations of those disputes; and successful action for injunctive relief under this
address, and at least one former address of the ‘‘(ii) provide training with respect to the per- subsection, a court may award to the prevailing
consumer. sonnel described in clause (i).’’; party reasonable attorney’s fees (as determined
‘‘(3) PERIODIC AUDITS.—Each consumer re- (B) in paragraph (6)(B)— by the court) incurred by the prevailing party
porting agency shall perform periodic audits, on (i) by amending clause (ii) to read as follows: during the action.’’.
a schedule determined by the Bureau, on a rep- ‘‘(ii) a copy of the consumer’s file and a con- (b) ENFORCEMENT.—Section 615(h)(8) of the
resentative sample of consumer reports of the sumer report that is based upon such file as re- Fair Credit Reporting Act (15 U.S.C.
agency to check for accuracy.’’. vised, including a description of the specific 1681m(h)(8)) is amended—
SEC. 4. IMPROVED DISPUTE PROCESS FOR CON- modification or deletion of information, as a re- (1) in subparagraph (A), by striking ‘‘section’’
SUMER REPORTING AGENCIES. sult of the reinvestigation;’’; and inserting ‘‘subsection’’; and
(a) RESPONSIBILITIES OF FURNISHERS OF IN- (ii) by striking clause (iii) and redesignating (2) in subparagraph (B), by striking ‘‘This
FORMATION TO CONSUMER REPORTING AGEN- clauses (iv) and (v) as clauses (vi) and (vii), re- section’’ and inserting ‘‘This subsection’’.
CIES.—Section 623 of the Fair Credit Reporting spectively; SEC. 6. INCREASED TRANSPARENCY.
Act (15 U.S.C. 1681s–2) is amended— (iii) by inserting after clause (ii) the following: (a) DISCLOSURES TO CONSUMERS.—Section 609
(1) in subsection (a)(8)— ‘‘(iii) a description of the actions taken by the of the Fair Credit Reporting Act (15 U.S.C.
(A) in subparagraph (E)(ii), by inserting ‘‘and consumer reporting agency regarding the dis- 1681g) is amended—
consider’’ after ‘‘review’’; and pute; (1) in subsection (a)(3)(B)—
(B) in subparagraph (F)— ‘‘(iv) if applicable, contact information for (A) in clause (i), by striking ‘‘and’’ at the end;
(i) in clause (i)(II), by inserting ‘‘, and does any furnisher involved in responding to the dis- and
not include any new or additional information pute and a description of the role played by the (B) by striking clause (ii) and inserting the
that would be relevant to a reinvestigation’’ be- furnisher in the reinvestigation process; following:
fore the period at the end; and ‘‘(v) the options available to the consumer if ‘‘(ii) the address and telephone number of the
(ii) by adding at the end the following new the consumer is dissatisfied with the result of person; and
clause: the reinvestigation, including— ‘‘(iii) the permissible purpose, as available, of
‘‘(iv) NEW OR ADDITIONAL INFORMATION.—For ‘‘(I) submitting documents in support of the the person for obtaining the consumer report,
rfrederick on DSKBCBPHB2PROD with HOUSE
purposes of clause (i)(II), the term ‘new or addi- dispute; including the specific type of credit product that
tional information’— ‘‘(II) adding a consumer statement of dispute is extended, reviewed, or collected, as described
‘‘(I) means information of a type designated to the file of the consumer pursuant to sub- in section 604(a)(3)(A).’’;
by the Bureau; and section (b); (2) in subsection (f)—
‘‘(II) does not include information previously ‘‘(III) filing a dispute with the furnisher pur- (A) by amending paragraph (7)(A) to read as
provided to the person.’’; and suant to section 623(a)(8); and follows:
(2) in subsection (b)(1), by inserting ‘‘and con- ‘‘(IV) submitting a complaint against the con- ‘‘(A) supply the consumer with a credit score
sider’’ after ‘‘review’’. sumer reporting agency or furnishers through through the portal established under section
VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00042 Fmt 4636 Sfmt 6333 E:\CR\FM\A26JN7.023 H26JNPT1
June 26, 2020 CONGRESSIONAL RECORD — HOUSE H2561
612(a)(1)(D) or upon request by the consumer, as (D) by redesignating paragraphs (6), (7), and Protection shall not have authority to prescribe
applicable, that— (8) as paragraphs (7), (8), and (9), respectively; regulations with respect to the standards under
‘‘(i) is derived from a credit scoring model that and section 501’’; and
is widely distributed to users by that consumer (E) by inserting after paragraph (5) the fol- (3) in section 505(a)(8), by inserting ‘‘, other
reporting agency for the purpose of any exten- lowing: than under subsection (c) of section 501’’ after
sion of credit or other transaction designated by ‘‘(6) REPORTS PROVIDED TO CONSUMERS.—A ‘‘section 501’’.
the consumer who is requesting the credit score; person who uses a consumer report as described SEC. 10. REPORT ON DATA SECURITY RISK AS-
or in paragraph (1) shall notify and direct the con- SESSMENTS IN EXAMINATIONS OF
‘‘(ii) is widely distributed to lenders of com- sumer reporting agency that provided the con- CONSUMER REPORTING AGENCIES.
mon consumer loan products and predicts the sumer report to provide the consumer with the Not later than 90 days after the date of the
future credit behavior of the consumer; and’’; disclosures described in section 612(b).’’. enactment of this Act, the Director of the Bu-
and (3) NOTIFICATION OF SUBSEQUENT SUBMISSIONS reau of Consumer Financial Protection shall as-
(B) in paragraph (8), by inserting ‘‘, except OF NEGATIVE INFORMATION.—Section sess whether examinations conducted by the Di-
that a credit score shall be provided free of 623(a)(7)(A)(ii) of the Fair Credit Reporting Act rector of consumer reporting agencies described
charge to the consumer if requested in connec- (15 U.S.C. 1681s–2(a)(7)(A)(ii)) is amended by under section 603(f) of the Fair Credit Reporting
tion with a free annual consumer report de- striking ‘‘with respect to’’ and all that follows Act (15 U.S.C. 1681a(f)) include sufficient proc-
scribed in section 612(a) or through the online through the period at the end and inserting esses to addresses any data security risks to the
consumer portal landing page established under ‘‘without providing additional notice to the con- consumers of such agencies on which such agen-
section 612(a)(1)(D)’’ before the period at the sumer, unless another person acquires the right cies maintain and compile files. Along with the
end; and to repayment connected to the additional nega- first semiannual report required under section
(3) in subsection (g)(1)— tive information. The acquiring person shall be 1016(b) of the Consumer Financial Protection
(A) in subparagraph (A)(ii)— subject to the requirements of this paragraph Act of 2010 (12 U.S.C. 5496(b)) to be submitted
(i) in the clause heading, by striking ‘‘SUB- and shall be required to send consumers the after the 90-day period after the date of the en-
PARAGRAPH (D)’’ and inserting ‘‘SUBPARAGRAPH written notices described in this paragraph, if actment of this Act, the Director shall submit to
(C)’’; and applicable.’’. Congress a report containing the results of such
(ii) by striking ‘‘subparagraph (D)’’ and in- SEC. 7. CONSUMER REPORTING AGENCY REG- assessment that includes—
serting ‘‘subparagraph (C)’’; ISTRY. (1) recommendations for improving the proc-
(B) in subparagraph (B)(ii), by striking ‘‘con- Section 621 of the Fair Credit Reporting Act esses to addresses any such data security risks;
sistent with subparagraph (C)’’; (15 U.S.C. 1681s) is amended by adding at the and
(C) by striking subparagraph (C); and (2) the progress of the Director on making any
end the following:
(D) by redesignating subparagraphs (D) improvements described under paragraph (1).
‘‘(h) CONSUMER REPORTING AGENCY REG-
through (G) as subparagraphs (C) through (F), ISTRY.—
SEC. 11. GAO STUDY ON THE USE OF SOCIAL SE-
respectively. CURITY NUMBERS.
‘‘(1) ESTABLISHMENT OF REGISTRY.—Not later
(b) NOTIFICATION REQUIREMENTS.— (a) STUDY.—The Comptroller General of the
than 180 days after the date of enactment of this
(1) ADVERSE INFORMATION NOTIFICATION.— United States shall carry out a study on the fea-
subsection, the Bureau shall establish a publicly
(A) IN GENERAL.—The Fair Credit Reporting sibility and means of consumer reporting agen-
available registry of consumer reporting agen-
Act (15 U.S.C. 1681 et seq.) is amended— cies replacing the use of social security numbers
cies that includes—
(i) in section 612 (15 U.S.C. 1681j), by striking as identifiers with another type of Federal iden-
‘‘(A) each consumer reporting agency that
subsection (b) and inserting the following: tification.
compiles and maintains files on consumers on a
‘‘(b) FREE DISCLOSURE AFTER NOTICE OF AD- (b) REPORT.—Not later than the end of the 2-
nationwide basis;
VERSE ACTION OR OFFER OF CREDIT ON MATERI- year period beginning on the date of the enact-
‘‘(B) each nationwide specialty consumer re-
ALLY LESS FAVORABLE TERM.—Not later than 30 ment of this Act, the Comptroller General shall
porting agency;
days after the date on which a consumer report- issue a report to the Congress containing all
‘‘(C) all other consumer reporting agencies
ing agency receives a notification under sub- findings and determinations made in carrying
that are not included under section 603(p) or
section (a)(2) or (h)(6) of section 615, or from a out the study required under subsection (a).
603(x); and
debt collection agency affiliated with the con- The SPEAKER pro tempore. The bill,
‘‘(D) links to any relevant websites of a con-
sumer reporting agency, the consumer reporting
sumer reporting agency described under sub- as amended, shall be debatable for 1
agency shall make to a consumer, without
charge to the consumer, all disclosures that are
paragraphs (A) through (C). hour, equally divided among and con-
‘‘(2) REGISTRATION REQUIREMENT.—The Bu- trolled by the chair and ranking minor-
made to a user of a consumer report in accord-
reau shall establish a deadline, which shall be ity member of the Committee on Fi-
ance with the rules prescribed by the Bureau.’’;
not later than 270 days after the date of the en- nancial Services.
and
actment of this subsection, by which each con-
(ii) in section 615(a) (15 U.S.C. 1681m(a))— The gentlewoman from California
(I) by redesignating paragraphs (2), (3), and sumer reporting agency described in paragraph
(1) shall be required to register in the registry (Ms. WATERS) and the gentleman from
(4) as paragraphs (3), (4), and (5), respectively; North Carolina (Mr. MCHENRY) each
(II) by inserting after paragraph (1) the fol- established under such paragraph.’’.
SEC. 8. AUTHORITY OF BUREAU WITH RESPECT will control 30 minutes.
lowing:
‘‘(2) direct the consumer reporting agency that TO CONSUMER REPORTING AGEN- The Chair recognizes the gentle-
CIES. woman from California.
provided the consumer report that was used in
the decision to take the adverse action to pro- Section 1024(a)(1) of the Dodd-Frank Wall GENERAL LEAVE
vide the consumer with the disclosures described Street Reform and Consumer Protection Act (12 Ms. WATERS. Madam Speaker, I ask
in section 612(b);’’; and U.S.C. 5514(a)(1)) is amended—
(1) in subparagraph (D), by striking ‘‘or’’ at
unanimous consent that all Members
(III) in paragraph (5), as so redesignated— may have 5 legislative days within
(aa) in the matter preceding subparagraph the end;
(2) in subparagraph (E), by striking the period which to revise and extend their re-
(A), by striking ‘‘of the consumer’s right’’;
(bb) by striking subparagraph (A) and insert- at the end and inserting ‘‘; or’’; and marks on H.R. 5332 and to insert extra-
ing the following: (3) by adding at the end the following new neous material thereon.
‘‘(A) that the consumer shall receive a copy of subparagraph: The SPEAKER pro tempore. Is there
the consumer report with respect to the con- ‘‘(F) is a consumer reporting agency described objection to the request of the gentle-
sumer, free of charge, from the consumer report- under section 603(p) of the Fair Credit Report- woman from California?
ing agency that furnished the consumer report; ing Act.’’. There was no objection.
and’’; and SEC. 9. BUREAU STANDARDS FOR PROTECTING
Ms. WATERS. Madam Speaker, I
(cc) in subparagraph (B), by inserting ‘‘of the NONPUBLIC INFORMATION.
Title V of the Gramm-Leach-Bliley Act (15
yield myself such time as I may con-
right of the consumer’’ before ‘‘to dispute’’.
(B) CONFORMING AMENDMENT.—Section U.S.C. 6801 et seq.) is amended— sume.
604(b)(2)(B)(i) of the Fair Credit Reporting Act (1) in section 501, by adding at the end the fol- Madam Speaker, I rise in support of
(15 U.S.C. 1681b(b)(2)(B)(i)) is amended by strik- lowing new subsection: H.R. 5332, the Protecting Your Credit
ing ‘‘section 615(a)(3)’’ and inserting ‘‘section ‘‘(c) CONSUMER REPORTING AGENCY SAFE- Score Act of 2020.
615(a)(4)’’. GUARDS.—The Bureau of Consumer Financial I would like the thank Representa-
(2) NOTIFICATION IN CASES OF LESS FAVORABLE Protection shall establish, by rule, appropriate tive GOTTHEIMER, the bill’s sponsor, for
rfrederick on DSKBCBPHB2PROD with HOUSE
TERMS.—Section 615(h) of the Fair Credit Re- standards for consumer reporting agencies de- all of his hard work and leadership on
porting Act (15 U.S.C. 1681m(h)) is amended— scribed under section 603(p) of the Fair Credit this important and bipartisan legisla-
(A) in paragraph (1), by striking ‘‘paragraph Reporting Act relating to administrative, tech-
tion. He worked extensively for most of
(6)’’ and inserting ‘‘paragraph (7)’’; nical, and physical safeguards to protect records
(B) in paragraph (2), by striking ‘‘paragraph and information as described in paragraphs (1) last year to seek the input and support
(6)’’ and inserting ‘‘paragraph (7)’’; through (3) of subsection (b).’’; of our colleagues on both sides of the
(C) in paragraph (5)(C), by striking ‘‘may ob- (2) in section 504(a)(1)(A), by striking ‘‘, ex- aisle, making improvements along the
tain’’ and inserting ‘‘shall receive’’; cept that the Bureau of Consumer Financial way.
VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00043 Fmt 4636 Sfmt 0634 E:\CR\FM\A26JN7.023 H26JNPT1
H2562 CONGRESSIONAL RECORD — HOUSE June 26, 2020
Our credit reporting system is badly to confirm the consumer’s identity. So as accurate, promoting an endless
broken, and consumers have little re- here is the problem: The bill fails to set cycle of frivolous reinvestigations and
course. It should be no surprise that appropriate standards to protect that decreasing the effectiveness of credit
consumer complaints regarding credit information. Specifically, the bill di- reporting.
reporting errors and failed attempts to rects the credit reporting agencies to Lastly, this bill continues the Demo-
fix these errors are consistently a top match all nine digits of a consumer’s crats’ goal of expanding the statutory
complaint submitted to the Consumer Social Security number before includ- authority of the Consumer Financial
Financial Protection Bureau and the ing any information in consumer credit Protection Bureau, or the CFPB. The
Federal Trade Commission. This dem- reports. bill creates duplicative ombudsmen in
onstrates that millions of consumers That sounds well, fine, and good, but the CFPB for credit reporting, some-
are frustrated with the current system we know hacks happen. As Federal em- thing that they currently have, but the
and need our help. ployees, we have had our information person has more than just consumer
H.R. 5332 would direct the nationwide hacked and sold. Just look at the cred- credit reporting responsibilities.
consumer reporting agencies to create it reporting agencies. They have had Since its creation, congressional Re-
a streamlined, single online portal for their information hacked and sold. publicans have fought to place this un-
consumers to have easy access to free This is why we wanted to come to a bi- accountable government agency under
credit reports, credit scores, dispute er- partisan compromise. the annual appropriations process and
rors, and place security freezes. There is something legitimate we have argued that the single-Director
Madam Speaker, I reserve the bal- should be doing, but today, not all data structure is unconstitutional. That is
ance of my time. furnishers collect full Social Security being litigated and will be decided by
Mr. MCHENRY. Madam Speaker, I numbers for submission for consumer the Supreme Court this summer.
yield myself such time as I may con- credit information to the credit bu- While the current CFPB Director is
sume. reaus. That means this bill has a re- working to increase the accountability
Madam Speaker, I rise in opposition quirement now that they collect all the and transparency at the agency, we
to H.R. 5332. Social Security information to confirm don’t know what the next Director will
I want to first thank the gentleman the consumer’s identity. This will po- do, if he or she will abuse his or her
from New Jersey for his work on this tentially have two negative con- power. We should fix the CFPB before
bill. I am disappointed we were not sequences for consumers. we expand their authorities.
able to come to a bipartisan com- First, data that is not already linked b 1530
promise. We worked for the better part to that Social Security number will be
of a year to try to achieve a good prod- excluded from credit bureaus. That Madam Speaker, I also want to take
uct that could broadly be supported. means, under this bill, accurate infor- issue with a larger set of issues here.
The Democrats’ decision to report
This product does not represent that mation will be removed for no other
out a closed rule means that you can’t
work, sadly. Unfortunately, we didn’t reason than it is missing the Social Se-
even have the ultimate goal of a bipar-
get there. curity number.
I believe that we are considering, tisan bill that can then get action in
This will actually decrease the pre-
today, a bill that is just another at- the Senate and then, potentially, get a
dictive power of credit files. That is a
tempt for House Democrats to socialize signature by the President.
negative for consumers. That, in turn,
This, too, is a sad sign of the state of
the credit reporting and scoring indus- will jeopardize the ability to get low-
affairs in what seems to be a highly
try. We are voting on a bill that will cost credit for consumers, especially
broken legislative process that we are
decrease competition, increase fraud, for those who are on the margin where
in the midst of. It further dem-
prop up the trial bar, and expand au- much of their information is derived by
onstrates my point that my colleagues,
thority of an already unaccountable being a consumer and paying back reg-
in particular, on the other side of the
CFPB, Consumer Financial Protection ular consumer debt.
aisle have no interest in working with
Bureau. Second, data furnishers will start ag-
First, this bill directs the three na- Republicans to craft a bill that pro-
gressively capturing and storing Social
tionwide credit reporting agencies to tects consumers’ personal information.
Security numbers for consumers just I submitted amendments to the Com-
create a shared online portal. This por- so the data can be used in the credit mittee on Rules that provide for tar-
tal will allow unlimited and free con- models. That means that our Social Se- geted solutions:
sumer access to credit information— curity number will be in more places Eliminating this reliance on Social
this is good—and credit freezes. This is and identity theft can then increase Security numbers;
good and allows consumers to initiate with more opportunities to steal our Removing paid non-elective debt
disputes. information. It means that consumers from credit reports—which this bill
That all sounds very good. In fact, will be further at peril for fraudulent fails to do;
Republicans support a one-stop shop activities by bad and malicious actors. Allowing parents to electronically
for consumers to access important So committee Republicans have con- freeze their minor’s credit report—
credit information. But we are talking sistently expressed concern with the which this bill fails to do;
about the three largest players in the private sector and government use of Requiring sources for public record
industry, and this bill codifies their Social Security numbers for identity data in credit reports, which would
place—their oligopoly structure and verification. I think we should all then expand credit files so that those
their favored view of the current mar- agree on that. This bill will only exac- who are on the margins for credit-
ketplace—and enshrines them further erbate the problem by statutorily di- worthiness would have enhanced credit
into law with this outsized authority. recting an increase in reliance on this potentially;
This bill condones their market very highly personal information. Prohibit the inclusion of adverse in-
structure by mandating that many of Next, this bill creates an additional formation relating to predatory mort-
their services be merged into a single opportunity for trial lawyers to exploit gage lending;
web portal. This doesn’t make things the litigation system, ultimately rais- Financial abuse or fraud associated
better; it makes it worse. ing the cost of credit for all consumers. with private student loans in credit re-
If Congress really wants to protect The bill expands the private right of ports. This bill does not act;
consumers, we should be working to action under the Fair Credit Reporting And directing the GAO to study and
promote more competition in the cred- Act to allow for injunctive relief. It report to Congress on the use of non-
rfrederick on DSKBCBPHB2PROD with HOUSE
it reporting and scoring industry. We further provides plaintiffs with com- traditional data and credit scoring,
should be promoting new ways to pensation for attorney fees, and more this is something that has bipartisan
eliminate barriers to entry, not pro- litigation means increased costs asso- support in our committee and has been
moting what really comes down to less ciated with credit reporting. reported out in other measures, but not
consumer choice. Additionally, this bill allows con- in this one.
Second, this bill requires the com- sumers to continuously dispute infor- And so those are sensible measures
plete Social Security numbers be used mation even if the account is verified that could have been included if we had
VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00044 Fmt 4636 Sfmt 0634 E:\CR\FM\K26JN7.061 H26JNPT1
June 26, 2020 CONGRESSIONAL RECORD — HOUSE H2563
an open amendment process. But then, friend and co-chair of the Problem mistake can easily seriously affect
again, we are wearing masks, we are Solvers Caucus, TOM REED, for his your credit. It could lead to more costs
conducting business in this odd way, work cosponsoring this important leg- and things like rising interest rates
where Members can vote for other islation. that would affect your loans, and even
Members that are not here on the Madam Speaker, after working on worse, you may be ineligible to qualify
House floor and we have to go through this bill for a year, I was proud when for financing altogether.
this whole long process. So I under- the bill was reported favorably out of The Federal Trade Commission has
stand they have a need to rush, right, the Committee on Financial Services previously found that one in 5 con-
but this is an ill-conceived bill that on December 11, 2019. sumers have verified errors in their re-
will have a negative impact on every I am also proud the House last night ports, not of their own making. And
American—every American—if this is passed the landmark George Floyd Jus- one in 20 consumers have errors so seri-
signed into law. tice in Policing Act. We must continue ous that they would be denied credit or
Madam Speaker, I think we need bet- to come together as a country to fight need to pay more for it. That adds up
ter consideration and a better product for racial justice on all fronts, and to to 42 million Americans with errors in
that could actually achieve a bipar- combat inequalities that have plagued their credit and 10 million with errors
tisan outcome. this Nation for too long, which in- that can be life-altering.
Let’s vote ‘‘no’’ on this, and let’s get cludes the ability to access credit. We also now live in a world where
on with the real work of the American Credit affects all communities, im- data breaches are a constant threat.
people. pacting what Americans pay for a car, Unfortunately, every year 15.4 million
Madam Speaker, I reserve the bal- whether they can get a mortgage for a Americans are victims of credit card
ance of my time. house, the rates on a credit card, and fraud—42,000 people every single day.
Ms. WATERS. Madam Speaker, I how much they can receive for a small According to the Merchant Risk
yield as much time as he may consume business loan. The impact it has is es- Council, 80 percent of all credit cards
to the gentleman from New Jersey (Mr. pecially strong on communities of are compromised. And the Identity
GOTTHEIMER), author of this bill and a color. And experts have testified to the Theft Resources Center has reported
member of the Committee on Financial Committee on Financial Services that that as of June 11, there have been 475
Services. the credit reporting system is biased, reported data breaches already this
Mr. GOTTHEIMER. Madam Speaker, particularly against these commu- year, exposing more than 5 million
I thank the chairwoman for allowing nities. records. And once you are a victim, al-
me to speak today on behalf of my bi- Running this crucial part of our most immediately the criminals, they
partisan legislation, H.R. 5332, the Pro- economy are three companies in the start in. They apply for new cards, for
tecting Your Credit Score Act of 2020. United States that literally hold the mortgages, for loans, for cars—any-
Madam Speaker, since I took office, I keys to the kingdom. It is an oligopoly. thing else they can get their hands on,
have been committed to helping pro- They decide Americans’ credit fate and all under your name—affecting your
tect seniors and other vulnerable com- whether they should get access to cred- credit score within these three credit
munities from fraud and to protect it, and it is all done in a closed-off sys- bureaus. And it is vital that these
their financial well-being. Like many tem behind the drapes. And we don’t fraudsters be caught immediately and
of my colleagues, constituents in my know what goes on, how they develop not be allowed to cause further damage
district are feeling the economic pain those scores. undetected between the one free annual
caused by the ongoing pandemic. I am very glad the ranking member report.
Just this week, in fact, a constituent is interested in trying to get more It has happened to my sister, to my
of mine, Patricia from Wantage, New competition into that process. And I constituents, to people I know. And I
Jersey, reached out to me to ask: What am very eager—and I am sure the com- am sure everyone out there knows
can we do as policymakers to help pro- mittee is, too—to work together on someone this has happened to. And
tect people’s credit during this crisis? that front. when someone is the target of this
Madam Speaker, I am proud that we I am also glad that there are areas fraud right now, it is up to the victim
were able to provide Americans with that he would like to go further on to fix these issues. They receive all of
debt and credit relief as part of the bi- overall when it comes to access to the burden of chasing after these three
partisan CARES Act, protecting home- credit. And I am also eager to sit down companies with their own systems and
owners in forbearance and Federal stu- as well. procedures and beg them for help. And
dent loan borrowers. We were able to Madam Speaker, the bottom line is that can take 3 to 6 months.
continue to work to do so with the bi- these three credit bureaus come up Madam Speaker, my bipartisan legis-
partisan HEROES Act, which has yet with their own magic number: Your lation with Congressman TOM REED
to become law. It is in the Senate now credit score. Houdini, himself, could from New York asked the private sec-
waiting action. And that act, including not figure out how these credit scores tor, not the government, to help fix
suspending negative credit reporting are calculated. They have their own se- this. And this is a big distinction here
during the pandemic, giving Americans cret formula. It impacts every aspect that I want to point out to the ranking
time to recover economically before of your life, as I said, from your car member, this is driven by the private
there is a risk of being hit on their loan to your mortgage, and it is up to sector, not the government, to fix this
credit reports. It is also time that we you to track it and beg them to fix in- issue. My bipartisan bill sets up a one-
look at the way hardworking Ameri- accuracies when they arise, which is stop shop online portal to check your
cans are able to track and ensure accu- far too often, and most often not your credit report for free at any time. It al-
racy in their credit reports so that fault. lows victims to shut off the ability of
their scores are where they need to be The best way to discover whether credit crooks from using your informa-
as we progress into our economic re- there are errors on your credit report tion to apply for credit under your
covery. is to check your three reports from name.
Madam Speaker, I really want to these companies, and FCRA currently The portal will also provide the abil-
thank Chairwoman WATERS for her only gives consumers the right to view ity to initiate and resolve disputes be-
impactful leadership and partnership their report for free once every 12 tween you and the credit bureau, and
on this bipartisan bill and her incred- months. you will be able to see who the bureaus
ibly supportive and smart team. I also Otherwise, you have got to pay out of have sold your data to in the prior 2
rfrederick on DSKBCBPHB2PROD with HOUSE
thank Ranking Member MCHENRY for your own pocket and chase down these years. Because, yes, they take your
spending so many months working three credit bureaus—anywhere from data and they go make money on your
with me in such a constructive and co- $9.95 a report to $15.95 a report. Experts information.
operative manner. My bill reflects a lot recommend that you check your report Madam Speaker, the bill strengthens
of his wise input. I, too, am sorry we before applying for any new line of cybersecurity safeguards of informa-
weren’t able to find ultimate common credit or making a large purchase or tion held by consumer reporting agen-
ground. I also want to thank my good renting or buying a home because a cies, to help prevent a repeat of the
VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00045 Fmt 4636 Sfmt 0634 E:\CR\FM\K26JN7.063 H26JNPT1
H2564 CONGRESSIONAL RECORD — HOUSE June 26, 2020
2017 Equifax data breach. The bill also Madam Speaker, finally, let me say earlier, the bill would create an online
asks the GAO to examine the most se- that during an economic downturn and portal for consumers to access their
cure and accurate marker to track throughout the years we are going to credit reports from all three major
your credit, whether it is your Social spend recovering from it, Americans’ credit bureaus in one place. The idea is
Security number or another Federal financial security will and must be a good idea, and very worth discussing
identifier. And this is very important. paramount. and very worth pursuing. But in its
I am glad the ranking member raised We have already seen spikes in fraud current state, it would be a massive
this issue, because I agree. We should throughout this pandemic, especially amount of sensitive data in one place,
find the best possible identifier that is related to direct payments and dif- so it must be done in a way that is
most secure, and that is exactly what ferent types of loans. And the chair- cybersecure to make sure that the in-
this study is all about because we need woman has worked overtime in all of formation doesn’t lead to more fraud
to make sure we keep your identity se- our bills to make sure we do every- and more identity theft.
cure. By creating this one-stop portal, thing possible to protect Americans As someone who has spent many
all three credit bureaus will now have during this time. I am grateful for her years in the IT sector, as I know my
to work together to help protect you leadership. good colleague, Mr. GOTTHEIMER, has as
and make your lives better, not the Madam Speaker, as we recover from well, I am very concerned about the po-
other way around. this crisis, I want to make sure Ameri- tential of breaches of this portal.
And I understand the issue that is cans can protect their credit and re- We all remember the 2017 Equifax
raised about the security and making solve disputes that may arise. As SEC data breach that exposed the financial
sure that this is not handed off to Chairman CLAYton testified just yes- information of millions of Americans,
someone. That is why, again, as I say, terday to the House Committee on Fi- and the last thing we should be doing is
the private sector will develop these nancial Services, for a consumer, the increasing the chance of that kind of
websites. best thing you can do for yourself is event happening again. But this bill
And to a point about this that was understand your credit and get your has the potential to do that very thing
raised: If my friend is actually really credit under control. because it does not include robust cy-
concerned, and he thinks that these We need a modernized system that bersecurity protections to make sure
three bureaus don’t have secure empowers all consumers, especially the information on the portal is secure.
websites now, well then we better get those facing new challenges with this b 1545
them here immediately and find out new pandemic, with transparency and
why he is worried about that and if Another worthy goal of the bill is to
the ability to correct errors to their make it easier for consumers to dispute
they actually should be more secure. credit reports, and to make sure every-
Because what we are asking them to do errors in their credit reports. But the
one can have access to credit so that bill allows consumers to repeatedly
is develop a website just like they have they can have a home, a car, and enjoy dispute the same information on their
now, which I hope—and I will ask the everything that everyone who works credit reports, even if it is found to be
companies again—I hope that they are hard should have access to. accurate, which would lead to unneces-
doing everything possible to keep their Madam Speaker, I urge my col-
sary and frivolous disputes.
own websites secure. leagues to support this commonsense Another significant concern I have
Madam Speaker, well, my own sister bipartisan bill, which will help every with this bill is that it would expand
had her credit hacked last year. She American. the authority of the Consumer Finan-
told me she was lucky to get a day off Mr. MCHENRY. Madam Speaker, I cial Protection Bureau. The CFPB is
from her job to figure all this out. She highlight for the bill’s sponsor that an unaccountable regulatory agency
had to sit on the phone and chase ev- first with the Equifax data breach, it is that took many rogue actions under
eryone. But what if you don’t have the proof that the industry could use bet- the previous administration.
ability to take a day off to sit on the ter data standards. My colleagues on the other side of
phone with each credit company and Second, making sure that they have the aisle know that expanding the
chase down every single issue? Our bi- the fullness of the Social Security CFPB’s power is a nonstarter for Re-
partisan legislation will help fix this numbers only means that when they publicans; therefore, I cannot support
and help Americans protect what they steal that information, they also steal this bill. I ask my colleagues to oppose
spent a lifetime building, and that is our full Social Security numbers so this bill.
their credit. they can have full action for fraudulent Ms. WATERS. Madam Speaker, I
Madam Speaker, I am also proud, activity and identity testimony. That, yield 5 minutes to the gentleman from
lastly, to have the support of several we know, and it should have been ad- New Jersey (Mr. GOTTHEIMER).
businesses and consumer groups. Vince dressed in this bill, and it is a failure of Mr. GOTTHEIMER. Madam Speaker,
Malta, the President of the National this legislation and the reason why I just one point I want to bring back up,
Association of Realtors, sent a letter oppose it. if I may. I want to thank my friend for
to me this week on the bill, which Madam Speaker, I yield 3 minutes to his comments, and I appreciate his
states: ‘‘Access to free credit scores, the gentleman from Georgia (Mr. work and our efforts together here.
transparency in the reporting process LOUDERMILK), the ranking member on The one point about the Social Secu-
and use of consumer credit information the Task Force on Artificial Intel- rity number that I want to raise is, the
high standards for vetting credit infor- ligence. bill requires a study at the GAO to see
mation, and a reliable method for con- Mr. LOUDERMILK. Madam Speaker, what the best answer is, whether if
testing and correcting inaccurate in- I thank our ranking member for not that is a Federal identifier number or a
formation are critical to a vibrant only yielding, but his fine leadership in Social Security number, whatever the
housing market and economy.’’ this committee. best answer is.
Other supporting groups include the I also appreciate my colleague, Mr. I know we spent a lot of time talking
National Consumer Law Center, the GOTTHEIMER, sponsor of this legisla- about this. I, too, am very concerned
Consumer Federation of America, Con- tion. I appreciate his leadership on with making sure that we have the
sumer Action, and World Privacy this, and I truly believe he did work best possible outcome to protect people
Forum. very hard in a bipartisan manner to try and protect their information.
Madam Speaker, while we did not to come to an agreement. And unfortu- So if the GAO comes back and says
earn the support of every group—and I nately, we just weren’t able to close that we need to develop a new Federal
recognize that—I am proud that even that gap. And I hope that going for- identifier so that we keep it separate
rfrederick on DSKBCBPHB2PROD with HOUSE
among those who disagree with us ac- ward we will be able to do that, be- from the Social Security number, then,
knowledged the efforts that we took in cause this is something that we do sup- to me, that would be the best outcome.
order to work towards a bipartisan port on this side with the certain con- That is exactly why the bill requires
agreement. I will continue to work to straints to protect the consumers’ the GAO to study this.
make every effort to reach consensus, identity. Again, just one other point, if we are
and I appreciate their acknowledgment One of my major concerns on this is concerned about current security and
of that effort. cybersecurity. As was spoken about cybersecurity.
VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00046 Fmt 4636 Sfmt 0634 E:\CR\FM\K26JN7.064 H26JNPT1
June 26, 2020 CONGRESSIONAL RECORD — HOUSE H2565
Mr. MCHENRY. Will the gentleman I thank the gentleman. I think we Madam Speaker, I urge opposition to
yield? are good. this bill.
Mr. GOTTHEIMER. I yield to the Mr. MCHENRY. Madam Speaker, I Ms. WATERS. Madam Speaker, I
gentleman from North Carolina. yield myself 30 seconds. yield 3 minutes to the gentleman from
Mr. MCHENRY. What I am high- What I would say, very simply, Illinois (Mr. CASTEN), a member of the
lighting is the fact that, in one section Madam Speaker, is that we could have Financial Services Committee.
of the bill, you have the study to say had a bipartisan solution here. That is Mr. CASTEN of Illinois. Madam
whether or not using Social Security what I was offering. Give up the pri- Speaker, I rise in support of H.R. 5332,
numbers is good or bad. I think that is vate right of action, so you don’t have the Protecting Your Credit Score Act.
good. That was laudable. more lawsuits, and give up your view of I support this bill because, like so
The problem is, in another part of a government-centric portal that basi- many Americans, I personally know
the bill, you mandate immediately cally enshrines these big three. Those the frustration of dealing with erro-
that they need the fullness of the So- are two additions. neous marks on your credit report and
cial Security numbers in order for the The final kicker is this: End the reli- thought I would share a recent story.
data to be included. That is what I am ance on Social Security numbers and About a month ago, I got a letter
highlighting, and that is one of the put the date in the future, and the from a bank where I don’t have an ac-
rubs that I have with the bill. technology solution will be there. That count, Bank of America. They were
Mr. GOTTHEIMER. Reclaiming my is an industry mandate that I offered thanking me for something that I
time. as a matter of compromise. didn’t recognize. So, I did what all good
Yes, they also have a period of time Madam Speaker, I yield 2 minutes to Americans do: I threw it in the recycle
to develop the site. It is not going to the gentleman from North Carolina bin and moved on with my day.
happen overall. In that period of time, (Mr. BUDD), my colleague from Davie The next day, I got a similar letter
we will get direction on what the best County, North Carolina, a great leader from Navy Federal Credit Union, where
outcome is in terms of using a Federal on the Financial Services Committee. I also do not have an account. This one
identifier, and we will execute against Mr. BUDD. Madam Speaker, I want had a summary of my credit score and
that as we develop this site. to rise in strong opposition to H.R. was shortly followed with another note
Back to the site. If the oligopoly of 5332, the Protecting Your Credit Score saying that my account was overdrawn
the three bureaus—if right now our Act of 2019. by $3,250.
Although I will not be supporting the I am going to be honest. The only
concern is that their sites are not se-
gentleman from New Jersey’s legisla- reason that the Navy Federal Credit
cure, then we better have them in im-
tion, I want to make sure that people Union letters got my attention and
mediately and have them take us
know that I consider him a friend, and didn’t end up in the recycling bin is be-
through their sites again. Because if cause they were addressed to Lieuten-
you are still concerned about this— I thank him for his efforts to try to
bring reform to the credit reporting in- ant Commander SEAN CASTEN. I have
Mr. MCHENRY. Will the gentleman
dustry. been called a lot of things in this job,
yield? but that is a rank that I have never
Mr. GOTTHEIMER. I yield to the There are some good ideas in this
bill, such as the one-stop-shop ap- earned.
gentleman from North Carolina. A few phone calls and a similar over-
Mr. MCHENRY. I commend Chair- proach for consumers to freeze and
unfreeze their credit for all three na- draft notification from Bank of Amer-
woman WATERS for bringing the three ica later, and I had fraud alerts placed
CEOs in. tionwide bureaus that we have just
talked about, as well as access to cred- on both accounts.
Mr. GOTTHEIMER. Right, right. I re- On the advice of the banks, I called
member that. it reports and scores.
But even this idea is taken too far in TransUnion to ensure this wouldn’t
Mr. MCHENRY. We, on a bipartisan show up on my credit report. The agent
basis, beat them up, which is a rare the bill, and it leaves too many unan-
swered questions about exactly how it was helpful. At the end of the call, she
thing in Congress. We beat them up be- said: ‘‘Is there anything else I should
cause they had a massive data breach is going to be carried out.
Now, it is really unfortunate that a know?’’
that exposed our data. That is why I And I just couldn’t resist telling her:
sincerely wanted to get to the bottom bipartisan compromise was not
reached. I know the ranking member ‘‘Only that I am a member of the House
of this and have a bipartisan bill. Financial Services Committee with
This is not a result of this product. and his staff worked tirelessly on this
oversight of you, and I appreciate how
Mr. GOTTHEIMER. Reclaiming my with the gentleman from New Jersey
helpful you have been.’’
time. and his staff. Now, I tell that story because I was
Just one question on that. Do you But there are a few other points I
able to correct this. But I can imagine
feel now that the three are still inse- want to make. You know, it is a chief
a ton of other scenarios where I don’t
cure? And are you concerned about priority for committee Republicans to check the recycling, where I am not al-
them? protect consumers’ personal informa- leged to be a commissioned naval offi-
Mr. MCHENRY. For sure, for sure. tion. That is something that both sides cer, where I hadn’t been in enough
That is why I want to get to a solution. have brought up. committee hearings on this subject to
This bill, sadly, incorporates none of Yet, we are preparing to vote on a recognize fraud early on. And in all
the conditionalities that I wanted. bill that still makes Social Security those scenarios, this story has a much
Mr. GOTTHEIMER. Reclaiming my numbers the primary way to identify a less happy ending.
time. person, despite the fact that we know But those incidents happen every day
Does the gentleman agree that we Social Security numbers threaten con- to an awful lot of Americans. We know
should have them back in immediately, sumers’ personal information. Worse 21 percent of consumers had verified er-
again, to talk to them and find out if yet, the bill will mandate furnishers to rors in their credit reports. Thirteen
they have made progress? match all nine Social Security digits. percent had errors that affected their
Mr. MCHENRY. The point is, we Another concern with this bill is the credit scores. Five percent had errors
could have had a massive vote on some- creation of yet another ombudsman at serious enough to cause them to be de-
thing that reformed them rather than the CFPB to deal exclusively with con- nied or pay more for credit. But those
bring them in and wag our finger sumer reporting agencies. This provi- are only the accounts we know about.
again. sion is unnecessary and duplicative. Many don’t know where to turn or
Mr. GOTTHEIMER. The whole point The CFPB already has an ombudsman have the resources or the time to cor-
rfrederick on DSKBCBPHB2PROD with HOUSE
is that, because they are still insecure, to deal with consumer-facing issues. rect them. Fraudulent or accidental
we better let people actually have ac- There is no logical reason why the pro- marks on a credit report can have a
cess to their data all the time. That is posed authorities cannot simply be life-altering consequence, so it is im-
what this bill does, so they can find given to the existing ombudsperson. portant that those reports are correct.
out, instead of having to pay 10 bucks This is simply another move by the But credit scores and reports are a
or 15 bucks every time to see if these Democrats to expand the statutory au- critical gatekeeper for Americans’ fi-
sites are secure. That is my concern. thority of the unaccountable CFPB. nancial well-being and access to the
VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00047 Fmt 4636 Sfmt 0634 E:\CR\FM\K26JN7.066 H26JNPT1
H2566 CONGRESSIONAL RECORD — HOUSE June 26, 2020
most basic building block of the Amer- shared online portal and would create It is, once again, another reason why
ican Dream. significant cybersecurity vulnerabili- we need a place for consumers to go to
It is determinative in setting pre- ties for consumers and companies, all get free access to their reports, to file
miums for auto and homeowner’s in- while creating opportunities for bad ac- complaints immediately, to contest
surance. It informs landlords on which tors to manipulate and take advantage issues when they see them, and to
renters they want to rent their apart- of our consumer data. make sure their credit isn’t sold off to
ments to. Your score determines if you I know a little bit about this because someone else right underneath them.
must make a bigger deposit to get your I have done this for about 22 years. That is the point of this. And why we
utilities. Creating a one-stop-shop for the cred- are having a GAO study is to make
That is why this bill is so important. it report, personal information, and So- sure we find the best way, the most se-
It creates an online consumer portal cial Security number of every indi- cure way, to do this going forward.
where consumers will have free and un- vidual would be disastrous in the event This legislation protects consumers;
limited access to their consumer re- of a cyber hack or data breach. it protects Americans; and it doesn’t
ports and credit scores. We need to find targeted solutions look out for the oligopoly. We need
Allowing consumers the ability to that focus on increasing the cybersecu- more competition there. It looks out
initiate disputes about credit report rity capability at credit reporting for the American consumer, and that is
accuracy—rather than all the rig- agencies, increase competition, and in- the point.
marole I had to go through—and to crease access to credit for consumers
and businesses, rather than put forward b 1600
place or remove a security freeze, is a
critical tool that allows Americans the proposals that undermine the con- Mr. MCHENRY. Madam Speaker, I
control and the ability to remedy those sumer reporting system and further think that since this is such a critical
errors. empower unelected bureaucrats at the issue, we should count up how many
It is 2020. It is long past time to mod- expense of the free market. hearings we had in the Financial Serv-
ernize the way that consumers address Ms. WATERS. Madam Speaker, may ices Committee. We had one in Feb-
errors on their credit scores. I inquire as to how much time I have ruary of 2019.
I thank Representative GOTTHEIMER remaining. We could have gotten to the bottom
The SPEAKER pro tempore. The gen- of these things if we actually had mul-
for introducing this bill, and I urge my
tlewoman has 121⁄2 minutes remaining. tiple hearings to figure this stuff out.
colleagues to vote ‘‘yes.’’ Ms. WATERS. Madam Speaker, I
Mr. MCHENRY. Madam Speaker, I Instead, we got a parsing bill on the
yield 3 minutes to the gentleman from
yield 2 minutes to the gentleman from floor that doesn’t achieve the things
New Jersey (Mr. GOTTHEIMER).
Virginia (Mr. RIGGLEMAN). Mr. GOTTHEIMER. Madam Speaker, that we needed to achieve.
Mr. RIGGLEMAN. Madam Speaker, I I thank Mr. RIGGLEMAN for his points. Madam Speaker, I yield 2 minutes to
rise today in opposition to H.R. 5332, He is a good friend, and I respect him the gentleman from Wisconsin (Mr.
the Protecting Your Credit Score Act. deeply. STEIL).
I would like to thank the ranking I disagree here, respectfully. The Mr. STEIL. Madam Speaker, I thank
member for his leadership, but also my whole point of this is to protect con- my colleague from North Carolina for
colleague from New Jersey. Not only is sumers. Giving consumers more data to yielding.
he a friend, but I respect him very have access to about themselves and to Madam Speaker, I rise in opposition
much, and I do applaud his efforts on understand their own credit scores and to the act.
this legislation. their own credit history and have more Like many of my colleagues, I am
I share his interest in ensuring credit transparency into their own lives does committed to ensuring that all con-
reports are complete, accurate, and not hurt them; it helps them. sumers can have faith in the validity of
transparent, but I believe this bill fails That is exactly what we are doing their credit score. Unfortunately, the
to achieve that goal. today, so that if you are hacked, if you bill fails to achieve that goal. It puts
The passage of H.R. 5332 will have are one of the millions of Americans consumers at greater risk of having
harmful and unintended consequences whose credit is stolen every single day their information stolen.
for consumers. It is, simply put, yet and you are trying to put your credit It threatens to increase the cost of
another veiled attempt to socialize the life back together, not by your own credit by creating more opportunities
credit reporting and scoring industry making, because someone did it to you, for trial lawyers and by making scores
that will cause harm to hardworking and they are opening accounts and less protected.
Americans. doing things to you, what this legisla- Further, it expands the jurisdiction
This bill is disguised as pro-con- tion will do is help you. of the Consumer Financial Protection
sumer, but H.R. 5332 will decrease com- Instead of having to spend hours Bureau, which is completely unac-
petition, increase the cost of credit for chasing down the three bureaus and countable to Congress.
consumers, provide opportunities for hoping that they actually do what they Credit scores are an essential part of
trial attorneys to exploit the litigation say they are going to do and put your our financial system. Both Republicans
system, and expand the authority of credit back together, so that when you and Democrats, I believe, agree on that
the Consumer Financial Protection Bu- want a house and a mortgage, or you point. We also agree that many Ameri-
reau. want a car, and you want to do the cans have difficulty accessing their
It undermines the Fair Credit Re- things that you have worked very hard credit due to their poor or insufficient
porting Act and our ability to main- to build your credit for, someone else credit histories.
tain a nationwide credit reporting sys- who stole your credit won’t be able to With that in mind, we should work
tem that benefits businesses and con- undermine that. That is what this bill together to enhance cybersecurity at
sumers. This bill would create a con- does. credit reporting agencies, reduce fraud,
flicting patchwork of interpretations of One point, just to clarify this impor- and help consumers get the relief they
the Fair Credit Reporting Act that will tant point that the ranking member need in times of crisis.
lead to confusion among financial in- made. The bill does not mandate the Our ranking member has been a lead-
stitutions and raise costs for all con- collection of Social Security numbers. er on this issue, introducing amend-
sumers. It simply requires that credit bureaus ments and standalone legislation to
While my colleague named this bill match the information they already move the ball forward. Unfortunately,
the Protecting Your Credit Score Act have on file to ensure that Jane Doe in his ideas and the ideas of those on our
rfrederick on DSKBCBPHB2PROD with HOUSE
of 2019, it does little to protect con- Illinois who defaults on her payments side of the aisle and other constructive
sumers and their data. Quite to the does not impair the credit of Jane Doe suggestions have not been included in
contrary, it expands and increases the in Indiana. this bill, making it a flawed bill. I urge
risk of harm to consumers affected by One of the biggest reasons consumers my colleagues to oppose the legisla-
a data breach. have errors in their files is because of tion.
This bill mandates the three nation- the mixed files when negative informa- Ms. WATERS. Madam Speaker, I
wide credit reporting agencies create a tion is assigned to the wrong person. would inquire through the Chair if my
VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00048 Fmt 4636 Sfmt 0634 E:\CR\FM\K26JN7.067 H26JNPT1
June 26, 2020 CONGRESSIONAL RECORD — HOUSE H2567
colleague has any remaining speakers So, let’s talk a little bit about the comings with the current system iden-
on his side. PII, that personally identifiable infor- tified during that time that need to be
Mr. MCHENRY. Madam Speaker, I mation. When you are matching all addressed.’’
do. nine digits of consumers’ Social Secu- Yet, since the Democrats took over
Ms. WATERS. Madam Speaker, I re- rity numbers, it doesn’t provide any al- in 2019, the House Financial Services
serve the balance of my time. ternate methods for verification. We Committee has held one hearing on
Mr. MCHENRY. Madam Speaker, I have had problems with this in the credit reporting. We had a bipartisan
yield 4 minutes to the gentleman from past, and I, for one, and many Repub- consensus on the things that needed to
Michigan (Mr. HUIZENGA), the ranking licans have consistently—in fact, a be done and the challenges therein.
member of the Investor Protection, En- number of my Democrat friends—have This hearing featured a public grilling
trepreneurship, and Capital Markets consistently expressed concerns regard- of the CEOs of the three nationwide bu-
Subcommittee. ing the private sector and govern- reaus. The hearing discussed structural
Mr. HUIZENGA. Madam Speaker, I ment’s overreliance on the use of these problems within the industry, yet this
rise today in opposition to H.R. 5332, Social Security numbers for identity bill just solidifies that structure.
and it is not because I don’t believe verification, which threatens con- The number one complaint in the
that there isn’t a motive behind this sumers’ personal information. CFPB consumer complaint database is
that isn’t intended to help consumers. I oppose the Securities and Exchange about consumer issues with credit re-
I just don’t think it is going to hit the Commission and other Federal agen- porting.
target. cies’ use of PII in their databases be- Why are we reinforcing the current
This bill requires the three largest cause there have been breaches. I am structure of this industry by legis-
nationwide credit reporting agencies to reminded of the old adage: Why would lating that? We should promote more
create a single shared online portal to you rob a bank? Because that is where competition in the system, not perpet-
allow consumers one-stop access to the money is. Why would you go after uate an obviously broken one.
consumer reports, credit scores, and a database? Because that is where the The Democrats took issue with the
credit freezes, as well as to initiate dis- digital gold is. market failure in credit reporting, an
putes. This portal would contain infor- What we are doing is, we are putting issue we agree on. However, their legis-
mation on consumer rights and direc- more digital gold into a new database. lative response does not do the things
tions on how to dispute a credit report. So we are increasing that vulnerabil- necessary to increase competition and
The bill requires credit reporting ity. We need to be working to promote consumer choice and protect our data.
agencies to match all nine digits of a more competition in the credit report- The fact that Democrat leadership
consumer’s Social Security number ing and scoring industry, not less. I decided this bill was perfect and needed
with the information included in a con- think that is what this bill, unfortu- no amendments demonstrates my
sumer file. nately, is doing. point. My colleagues on the other side
In addition, the bill codifies the Instead, we should be debating more of the aisle have no interest in working
CFPB’s supervision of credit reporting targeted solutions, such as H.R. 3821, with Republicans to craft a bill that
agencies and expands their authority which would bolster cybersecurity ca- will really protect consumers’ personal
to establish ‘‘administrative, tech- pacity at credit reporting agencies, en- information. This bill is about catering
nical, and physical safeguards,’’ cur- courage an alternative to use of Social to their stakeholders.
rently under the Gramm-Leach-Bliley Security numbers, protect minors Madam Speaker, I will reiterate, like
Act, to all credit reporting agencies. against fraud, and help consumers who I have with so many bills that have
The bill provides injunctive relief to may be facing medical debt as a result passed the House: This bill has no
allow a court to compel a credit report- of the global pandemic. chance of being passed by the Senate or
ing agency to fix an error or remove in- Madam Speaker, I urge my col- signed into law.
accurate information from a consumer leagues to reject this bill. Preserving access to and making
report. Ms. WATERS. Madam Speaker, I re- available low-cost credit options to
Furthermore, the bill creates an ad- serve the right to close, and I reserve consumers should be Congress’ pri-
ditional ombudsman at the CFPB the balance of my time. ority. We should be working toward bi-
tasked with resolving persistent errors Mr. MCHENRY. Madam Speaker, I partisan solutions, and we should
on reports that are not addressed in a yield myself such time as I may con- prioritize those things. We should be
timely fashion and allows the ombuds- sume to close. working toward those solutions, and
man to make referrals to the Office of Madam Speaker, as I said in my that is why I urge a ‘‘no’’ vote on this
Supervision and Enforcement for cor- opening, this is yet another attempt by bill.
rective action. House Democrats to socialize the cred- Madam Speaker, I include in the
We are all supportive of increased ac- it reporting and scoring industry. RECORD letters in opposition to this
cess and availability on credit reports, We had an opportunity for a bipar- bill by the Consumer Data Industry As-
scores, and file freezes, but this legisla- tisan bill, and this is not the work of sociation, the Credit Union National
tion is just overly broad and proscrip- that product. This bill will decrease Association, the U.S. Chamber of Com-
tive. competition in the industry, increase merce, the American Bankers Associa-
I, too, like one of my other col- fraud risk related to consumers’ per- tion, the National Taxpayers Union,
leagues who just talked about having sonal data, prop up the trial bar, and and the Consumer Bankers Associa-
mysterious things show up in the mail, expand the authority of the Consumer tion.
have been a victim of that. I have also Financial Protection Bureau. CONSUMER DATA INDUSTRY ASSOCIATION,
had my credit card numbers stolen in If Congress really wants to protect Washington, DC, June 17, 2020.
the past. We have had to be online and consumers, we should be working to- Hon. NANCY PELOSI, Speaker,
try to deal with these things. gether promote more competition in Hon. KEVIN MCCARTHY, Republican Leader,
The goal to make sure that we are all House of Representatives, Washington, DC.
the credit reporting and scoring indus- DEAR SPEAKER PELOSI AND LEADER MCCAR-
protected as much as possible is a lofty try. We should be promoting new ways THY: As the House prepares to consider HR
goal. The problem here, though, is that to eliminate the barriers to entry, not 5332, the Protecting Your Credit Score Act of
this is going to potentially decrease promoting what really comes down to 2019, CDIA and its members wanted to take
competition, which then actually less consumer choice. this opportunity to express our opposition to
disincentivizes that access; increasing We marked up this bill in the Finan- the bill.
rfrederick on DSKBCBPHB2PROD with HOUSE
fraud risk, which I am very concerned cial Services Committee back in De- We believe that this bill will have negative
about; propping up the trial bar, which cember. The committee Democrats impacts on the American consumer. Over the
last decade Congress has prioritized the
I know is a common theme here in noted in their report on the bill: ‘‘It
‘‘ability to repay’’ as the most important
Washington, D.C., at least out of one has been more than 15 years since Con- part of underwriting a financial product, to
party; and expanding the authority of gress enacted comprehensive reform of fight predatory lending and ensure that con-
the Consumer Financial Protection Bu- the consumer credit reporting system, sumers are not able to borrow more than
reau. and there have been numerous short- they can afford. This bill will make it harder
VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00049 Fmt 4636 Sfmt 0634 E:\CR\FM\K26JN7.069 H26JNPT1
H2568 CONGRESSIONAL RECORD — HOUSE June 26, 2020
for lenders to determine whether a consumer at the mercy of any convicted criminal who thiness and inform lending decisions. It is in
has an ability to repay, increase loan losses is willing to lie on an application. the interest of all stakeholders in the lend-
and ultimately result in higher prices, espe- The bill introduces unnecessary and expen- ing process for borrowers’ credit reports to
cially for those who previously received the sive burdens into the credit reporting sys- be accurate and complete.
best prices on loan products after a lifetime tem, making it harder for consumers dis- H.R. 5332 would require credit reporting
of on-time payments. putes to be processed in a timely fashion. agencies to create an online portal for con-
The bill: could make the cost of borrowing The addition of a new ‘‘consumer portal,’’ sumers to access free credit reports and cred-
more expensive and limit access to credit; also in Section 2, would create an unneces- it scores, and dispute errors. It would also di-
could introduce new threats to consumers’ sary new government-mandated website for rect the Consumer Financial Protection Bu-
information and physical security; and intro- consumers when existing options for con- reau (CFPB) to impose and enforce data se-
duces unnecessary and expensive burdens sumers already exist. Consumers currently curity safeguards for the credit reporting
into the credit reporting system, making it can visit any of the websites of the nation- agencies.
harder for consumers disputes to be proc- wide CRAs and file a dispute, set a security While the legislation may be well-inten-
essed in a timely fashion. freeze and exercise other rights that are tioned, we oppose H.R. 5332 because the ex-
The bill could make the cost of borrowing guaranteed by the Fair Credit Reporting pansion of private rights of action and allow-
more expensive and limit access to credit. Act. This provision is unnecessary and could ing courts to award injunctive relief could
Section 4 of the bill could lead to higher create additional data security issues. increase the frequency of meritless lawsuits
costs of credit for the overall market, and Consumers who pay their bills on time under the Federal Credit Reporting Act
specifically for consumers who pay their would also be the ones most impacted by the (FCRA). When entities are subject to frivo-
bills on time every month. This section of bill’s requirement for full nine-digit Social lous litigation, resources are distracted from
the bill would allow consumers who have not Security Number (SSN) matching. The FTC providing services, increasing the cost of
paid their bills on time to continue disputing studied this matching topic in an exhaustive service to all consumers. In the case of credit
information, even if the account is verified report directed by the 2003 FACT A Act, and unions, frivolous litigation means that ac-
as accurate. This would increase the likeli- found that matching nine digits of the SSN cess to safe and affordable financial services
hood that that accurate, though negative in- is not a viable solution, as it would not re- becomes more expensive and potentially less
formation, will be excluded from credit sult in greater accuracy of credit reports, available for credit union members.
scores, thereby impeding lenders from mak- but it would lead to fewer consumers being We also have concerns that the online por-
ing adequate risk decisions. approved for credit. By denying CRAs the tal mandated under this legislation would
This bill could introduce new threats to ability to anticipate and fix transcription er- pose significant cybersecurity risks for con-
consumers’ information and physical secu- rors, consumers could end up having mul- sumers, financial institutions, and compa-
rity. tiple fragmentary credit reports, each one nies. The portal created would have no direct
Section 6 would require CRAs to effec- tied to a given SSN. Then, when applying for owner and require its own authentication
tively mail a credit report to a consumer new credit, a lender will not be able to see and security, leading to the possibility of
every time an adverse action occurs in a the full picture of the individual, meaning consumers either being rejected from the
credit transaction. If, for example, a con- that the consumer who has paid their bills portal or a nefarious actor abusing the sys-
sumer applies for a mortgage and receives a on time every month won’t receive the ben- tem.
rate higher than the lowest possible rate due efit accrued during their many years of hard Finally, we question the need for this leg-
to the consumer’s higher credit utilization work. And some consumers will find strang- islation. Under the FCRA, consumers can
rate, then each credit bureau would have to ers’ files associated with their SSN, compli- dispute the accurateness of information on
physically mail a report to the consumer, cating the lending process. The Consumer Fi- their credit reports. They can either raise
whether the consumer requested it or not. nancial Protection Bureau supervises and ex- the dispute directly with the credit reporting
And if the consumer applied to several mort- amines the nationwide CRAs and has not agency or with their creditor. The FCRA re-
gage companies, the CRAs would have to raised this issue as a concern; this section of quires these disputes to be resolved in a
mail the report to the consumer’s last the bill will harm, not help, consumers. timely manner and, if the disputed informa-
known address each time. This would create We would also note that Section 5 of the tion is incorrect, the information in question
data security issues, as thousands of credit bill includes injunctive relief that exposes is eliminated from the report. As such, con-
reports would be sent, by mail, to people who users of credit reports to private enforce- sumers already have significant tools to dis-
didn’t ask for them, don’t want them, or ment for consumer notices and red flags. pute information and correct errors in their
don’t need them. Also, tens of millions of This would be a significant change in prac- credit reports.
consumers move each year, increasing the tice that would expose lenders to new liabil- On behalf of America’s credit unions,
likelihood that credit reports would fall into ities from the trial bar. thank you for the opportunity to share our
the hands of persons other than the intended This bill was the subject of a great deal of views.
consumer. Consumers today can receive free negotiation and discussion with Representa- Sincerely,
credit reports as often as every week and tive Gottheimer, the bill sponsor, before the JIM NUSSLE,
have additional opportunities to get their Financial Services Committee passed the President & CEO.
credit report under certain circumstances. bill. We appreciate his spirit of cooperation,
CRAs should not be mailing millions of cred- but unfortunately the bill before the House CHAMBER OF COMMERCE OF THE
it reports with very sensitive information to falls short of its goals to strengthen the con- UNITED STATES OF AMERICA,
people who did not ask for them. sumer credit market and protect consumer Washington, DC, June 23, 2020.
Section 2 of the bill could also harm con- credit scores. TO THE MEMBERS OF THE U.S. HOUSE OF
sumers’ personal physical security. This sec- Sincerely, REPRESENTATIVES: The U.S. Chamber of
tion includes language giving consumers new FRANCIS CREIGHTON, Commerce opposes H.R. 5332, the ‘‘Protecting
rights to opt out of sales of non-credit report President & CEO. Your Credit Score Act of 2019.’’
information. The identity information that The Fair Credit Reporting Act (FCRA) re-
also appears in a credit report is critical for CREDIT UNION NATIONAL ASSOCIATION, quires each consumer reporting agency
companies that need to confirm identity, al- June 24, 2020. (CRA) to achieve maximum possible accu-
ternate names, and previous addresses, such Hon. NANCY PELOSI, racy in compiling a consumer report. Every
as criminal-background screeners. The effect Speaker, House of Representatives, CRA also has a legal obligation to safeguard
of this provision would be to allow someone Washington, DC. the personal information that they hold.
to hide their relevant criminal history from Hon. KEVIN MCCARTHY, This legislation would require companies
employers, volunteer agencies or other users Republican Leader, House of Representatives, to jointly establish an online consumer por-
of criminal history reports. For example, Washington, DC. tal with its own authentication and security,
someone convicted of elder or child abuse DEAR SPEAKER PELOSI AND LEADER MCCAR- without a specific owner. This portal would
could simply move to a new jurisdiction, opt THY: On behalf of America’s credit unions, I create significant cybersecurity
out of non-credit report sales and apply for am writing regarding H.R. 5332, the Pro- vulnerabilities for consumers and compa-
jobs with nursing homes or child-care cen- tecting Your Credit Score Act of 2019. The nies—making it impossible for CRAs to meet
ters. Today, when someone like this applies Credit Union National Association (CUNA) existing obligations. Further, the authen-
for a job and discloses neither their old ad- represents America’s credit unions and their tication of the portal could potentially ex-
dress nor the criminal conviction, the back- 115 million members. pose credit reports to abusive credit repair.
ground screener would purchase an address Accurate and complete credit reports are If the authentication is tuned too high, then
rfrederick on DSKBCBPHB2PROD with HOUSE
history from a credit bureau to identify ju- essential to credit unions providing safe and real consumers would be rejected from the
risdictions in which to search for records. affordable financial services to their mem- website. If authentication is too loose, then
While this method is not fool proof, it is the bers. Whereas credit unions’ field of member- it could be abused.
industry standard and results in detection ship restrictions were originally designed as The Chamber supports efforts to stream-
rates comparable to fingerprinting by the a mechanism for determining borrowers’ line access to credit data for consumers;
FBI. Without it, employers, volunteer agen- credit worthiness, today credit unions and however, it must be done in a responsible
cies, youth sports leagues and other legiti- other financial institutions rely on credit re- way that does not prevent access to credit.
mate users of background screening would be ports and credit scores to assess credit wor- While we appreciate the extensive efforts of
VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00050 Fmt 4636 Sfmt 0634 E:\CR\FM\A26JN7.028 H26JNPT1
June 26, 2020 CONGRESSIONAL RECORD — HOUSE H2569
Rep. Gottheimer to resolve our concerns, the While we appreciate Representative CONSUMER BANKERS ASSOCIATION,
Chamber remains opposed. Gottheimer’s efforts and welcome discussion Washington, DC, June 25, 2020.
Sincerely, on these issues, we must oppose H.R. 5332 as Hon. NANCY PELOSI,
NEIL L. BRADLEY. currently crafted. Speaker of the House,
Sincerely, Washington, DC.
AMERICAN BANKERS ASSOCIATION, JAMES C. BALLENTINE. Hon. KEVIN MCCARTHY,
Washington, DC, June 23, 2020. House Minority Leader,
Hon. NANCY PELOSI, NATIONAL TAXPAYERS UNION, Washington, DC.
Speaker of the House, House of Representatives, Washington. DC, June 26, 2020. DEAR SPEAKER PELOSI AND LEADER MCCAR-
Washington, DC. The National Taxpayers Union urges Rep- THY: On behalf of the Consumer Bankers As-
Hon. KEVIN MCCARTHY, resentatives to vote ‘‘NO’’ on H.R. 5332, the sociation (CBA), I am writing to share our
Minority Leader, House of Representatives, ‘‘Protecting Your Credit Score Act of 2020.’’ views on H.R. 5332, the Protecting Your Cred-
Washington, DC. Though well-intentioned, this legislation it Score Act of 2019. CBA is the voice of the
DEAR SPEAKER PELOSI AND MINORITY LEAD- would cede more power to the unaccountable retail banking industry whose products and
ER MCCARTHY: The American Bankers Asso- Consumer Financial Protection Bureau, services provide access to credit for con-
ciation writes to express our opposition to jeopardize consumer information, and poten- sumers and small businesses. Our members
H.R. 5332, the Protecting Your Credit Score tially weaken lending underwriting stand- operate in all 50 states, serve more than 150
Act of 2020, scheduled for consideration be- ards. million Americans, and collectively hold
fore the House this week. Accurate and complete credit reports are two-thirds of the country’s total depository
We share the sponsor’s interest in ensuring the foundation of this country’s robust and assets.
that credit reports are complete and accu- competitive consumer credit market. Most, CBA opposes the Protecting Your Credit
rate and that consumers have appropriate if not all, lenders rely upon credit history Score Act of 2019. Section 5 of the bill, ‘‘In-
protections, including rights to challenge data found in credit reports to identify and junctive Relief for Victims,’’ is especially
and have corrected any inaccuracies in their evaluate potential risks a consumer may
concerning because it undermines the CFPB
reports. Though the legislation is well-in- pose before entering into a financial rela-
and Federal Trade Commission’s (FTC) pri-
tended, we believe it will make credit re- tionship with that consumer. That informa-
mary authority to enforce the Fair Credit
ports less predictive and useful by promoting tion is critical for lenders to evaluate the ap-
Reporting Act (FCRA) in a manner con-
the elimination of negative but accurate in- plicant’s ability to repay, interest rates, and
sistent with maintaining a nationwide credit
formation that will weaken the underwriting other loan terms. Since many home loan bor-
reporting system that benefits businesses
process and thus increase borrowers’ costs rowers will have their mortgage guaranteed
and consumers. Congress enacted FCRA in
and reduce people’s ability to get loans. In by the federal government, lawmakers must
1970 with emphasis on ensuring fairness, ac-
addition, allowing courts to award injunctive be cautious in their reforms to the Fair
curacy, and efficiency within the banking
relief will promote questionable lawsuits and Credit Reporting Act (FCRA) to avoid adding
undue credit risk onto the government-spon- system, and in doing so specifically pro-
replace the current single-interpretation re- tected federal regulators’ sole authority to
gime with inconsistent interpretations that sored enterprises’ balance sheets.
Perhaps the most problematic provision of pursue injunctive relief for violations, to
vary across the country. avoid any possibility of multiple courts
The Fair Credit Reporting Act (FCRA) cur- H.R. 5332 is the requirement for the three
major credit bureaus, which are entirely pri- issuing conflicting orders. Undoing this de-
rently provides consumers strong dispute liberate design is unnecessary given the seri-
rights to challenge the accuracy of informa- vate businesses, to jointly create an online
consumer portal for consumers to access ous fines and other existing penalties al-
tion in their reports—rights that are en- ready in place under the FCRA and court dis-
forced through supervision, government their credit reports and scores, dispute er-
rors, and place or lift security freezes. While rupt credit markets without any positive im-
agency enforcement actions, and civil law- pact on consumer credit reports. As deposi-
suits. Consumers may submit claims to ei- a one-stop shop may seem to offer consumer
benefits, having one location containing tory institutions supervised by prudential
ther the consumer reporting agency or di- federal regulators with deep expertise and
rectly to the furnisher of the information. every credit report, personal information,
and social security number of every indi- experience in financial markets, CBA mem-
Disputes must be investigated and resolved bers are concerned with the potential for un-
promptly. If not, the information is deleted. vidual could have disastrous consequences in
the event of a cyber hack or data breach. limited injunctive authority to impair na-
Thus, consumers have ample legal means to tionwide financial systems.
Secondly, this legislation provides no legal
challenge the accuracy of information in CBA is also troubled by Section 4, ‘‘Im-
protection to these entities in the event of a
their credit reports. large scale cyber breach, leaving these busi- proved Dispute Process for Consumer Re-
We are concerned about the abuse of these
nesses vulnerable to big class-action law- porting Agencies.’’ The CFPB already has
protective provisions to remove accurate but
suits. H.R. 5332 also changes how consumers authority to enforce fines for FCRA viola-
negative information, not only by credit re-
dispute adverse information found in their tions, and this proposal would complicate ex-
pair organizations and those hoping to erase
credit reports, allowing individuals to flood isting cost effective and efficient processes
accurate negative information from their re-
reporting agencies and lenders with false furnishers are mandated to use under federal
port to improve their ability to obtain cred-
claims of inaccuracies that must be resolved law to distinguish false or illegitimate dis-
it, but also by individuals, including those
in a timely manner. Ultimately, this pro- putes from actual consumer problems that
involved in organized crime, seeking to de- posal shifts the burden on dispute resolution should draw focus and proper inquiry. Safety
fraud lenders. from the individual onto the credit bureaus.
H.R. 5332 will make it even easier than it is and soundness considerations require the
Additionally, this bill establishes a second, highest standards for complete and accurate
today for individuals to flood consumer re- duplicative ombudsman at the CFPB who
porting agencies and furnishers of informa- consumer information in the underwriting
will have sole control over credit reporting. process. Modifying or deleting disagreeable,
tion with false claims of inaccuracies that The ombudsperson would have to help re-
must be resolved in a timely fashion or de- but accurate consumer information from any
solve persistent errors in credit reports that report without proper input from furnishers
leted. The resulting degradation of the re- aren’t addressed in a timely manner, and
ports will reduce the ability of lenders to will interfere with prudent risk assessments
make referrals for supervisory or enforce- and raise costs for all consumers.
evaluate an applicant’s creditworthiness and ment actions against credit reporting com- Furthermore, the ‘‘Bureau Credit Report-
ability to repay, which in turn will increase panies. This situation sets up a new oppor- ing Ombudsman’’ as written under this sec-
what consumers pay for credit and make it tunity for the CFPB to specifically target tion has seemingly unrestrained individual
harder for many consumers, especially the certain companies that may become ‘‘unsa- authority that could make determinations
underserved, to get credit. Moreover, re- vory’’ and be subject to political targeting. on a consumer’s credit profile without the
sources and money spent to manage the in- NTU also questions the need for such legis- due process or appeal mechanisms generally
creased volume of false claims are better lation, as the FCRA currently provides con- required under the Administrative Procedure
spent resolving legitimate disputes. sumers ample opportunity to dispute inac-
The bill will further undermine the con- Act (APA). This unilateral decision-making
curate information on their credit reports. authority would have a serious and negative
sumer reporting system by expanding pri- The FCRA already requires these disputes to
vate rights of action against users of credit impact on a bank’s ability to determine risk
be resolved in a timely manner and, if the and extend affordable credit.
reports and by creating uncertainty about disputed information is incorrect, the infor-
how banks and others must comply with the Thank you for your consideration of our
mation in question is eliminated from a re- views. CBA remains eager to assist your ef-
FCRA. Allowing courts to award injunctive port. In essence, this legislation does not
rfrederick on DSKBCBPHB2PROD with HOUSE
relief means that multiple courts can inter- forts at improving outcomes for all bor-
bring any new meaningful benefits to the
pret this complicated statute differently rowers.
credit reporting process.
from the Consumer Financial Protection Bu- Roll call votes on H.R. 5332 will be included Sincerely,
reau, the primary agency tasked with inter- in NTU’s annual Rating of Congress and a RICHARD HUNT,
preting and enforcing FCRA. The result will ‘‘NO’’ vote will be considered the pro-tax- President and CEO.
be a patchwork of inconsistent interpreta- payer position. If you have any questions, Mr. MCHENRY. Madam Speaker, I
tions, uncertainty about how to comply, and please contact NTU Policy and Government urge a ‘‘no’’ vote on this bill, and I
lawsuits of questionable merit. Affairs Manager, Thomas Aiello. yield back the balance of my time.
VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00051 Fmt 4636 Sfmt 0634 E:\CR\FM\A26JN7.029 H26JNPT1
H2570 CONGRESSIONAL RECORD — HOUSE June 26, 2020
Ms. WATERS. Madam Speaker, I Trying to fix these errors can be a Kafka- sumer report’’ and creating a comprehensive
yield myself the balance of my time. esque nightmare in which the Big Three na- registry of all consumer reporting agencies.
Madam Speaker, it has been nearly 17 tionwide consumer reporting agencies The above reforms are urgently needed in
(CRAs)—Equifax, Experian and TransUnion— order to ensure that consumers are treated
years since major reform legislation to
consistently favor the side of the creditor or fairly by the credit reporting system and
address common problems with credit debt collector (‘‘the furnisher’’) over the con- that they have the access and control that
reporting has been enacted into law. To sumer. As documented in NCLC’s report they should be entitled to. Thus, we support
that end, I am pleased that, earlier this Automated lniustice Redux (2019), some of the Protecting Your Credit Score Act of 2019
year, the House passed H.R. 3621, the the most serious problems include consumers an look forward to working with you to
Comprehensive Credit Reporting En- having their credit files ‘‘mixed’’ with the swiftly enact it into law.
hancement, Disclosure, Innovation, wrong person, being unable to remove nega- Thank you for your attention. If you have
and Transparency Act. tive information even after court judgments any questions about this letter, please con-
Representative GOTTHEIMER’s bipar- in their favor, the after-effects of identity tact Chi Chi Wu (cwu@nclc.org) at (617) 542–
theft when CRAs don’t believe the victim, 8010.
tisan bill complements those efforts to and being labeled as dead when they are Sincerely,
ensure we have a well-functioning cred- alive and breathing. The report also docu- AMERICANS FOR FINANCIAL
it reporting system that is streamlined ments the massive number of credit and con- REFORM,
and easy to use and that better pro- sumer reporting complaints to the Consumer NATIONAL CONSUMER LAW
tects the data of all consumers. Financial Protection Bureau (CFPB), over CENTER (on behalf of its
Republicans were in charge when 380,000 since July 2011, which is often the top low-income clients),
Equifax exposed sensitive data of 150 category of complaints to the CFPB. CONSUMER ACTION,
The irony of these problems is that credit CONSUMER FEDERATION OF
million Americans. What was their re-
reports consist of our information. Yet con- AMERICA,
sponse? Nothing. sumers are only entitled to free access to CONSUMER REPORTS,
Earlier this year, the House passed this information once a year and in certain NATIONAL ASSOCIATION OF
the Comprehensive CREDIT Act to other limited situations, despite the fact CONSUMER ADVOCATES,
overhaul our broken credit reporting that the Big Three nationwide CRAs are USPIRG,
system and enhance cybersecurity of making tens of millions selling our financial WORLD PRIVACY FORUM.
the credit reporting bureaus. Repub- data. Also, consumers are not entitled to our
licans voted no. own credit scores for free, while these same NATIONAL ASSOCIATION OF REALTORS,
Representative GOTTHEIMER offered scores are being sold to creditors and others Washington, DC, June 23, 2020.
for hefty profits. Hon. JOSH GOTTHEIMER,
this bill that would strengthen cyber- Last, but not least, there are serious issues Washington, DC.
security of Equifax and other credit bu- with data security at the nationwide CRAs, DEAR REPRESENTATIVE GOTTHEIMER: On be-
reaus, and now Republicans are saying of the type that led to the massive Equifax half of the 1.4 million members of the Na-
no. data breach in 2017. These data security tional Association of REALTORS® (NAR), I
We have some Republicans who op- issues have not yet been adequately ad- am pleased to support several provisions of
pose giving the CFPB expanded author- dressed. H.R. 5332, the Protecting Your Credit Score
ity, although I would note Ranking The Protecting Your Credit Score Act of Act of 2020.
2019 would address these issues by: NAR has a long history of involvement in
Member MCHENRY introduced H.R. 3821 Fixing the broken system for credit report-
that would do just that, giving the issues concerning the use and disclosure of
ing disputes by (1) creating a CFPB
CFPB authority of cybersecurity for consumer credit data. Nearly 90 percent of
ombudsperson that will have the power to re-
home sales are financed, and a borrower’s
the credit bureaus. The bill before us solve persistent errors when CRAs don’t fix
credit report and credit score form a critical
would do the same. them properly, and to make referrels to the
gateway to obtaining a mortgage. Unfortu-
I would urge Republicans to recon- Office of Supervision or the Office of En-
nately, inaccurate credit reports and unfair
sider their opposition to the bill. I urge forcement for supevisory or enforcement ac-
credit reporting methods raise the cost to
tion when CRAs don’t comply with their
an ‘‘aye’’ vote on this commonsense borrow and/or limit access to mortgage cred-
disput investigation reponsibilities and (2)
bill. it for many prospective borrowers.
requiring CRAs to dedicate sufficient re-
Madam Speaker, I include in the REALTORS® believe that access to free
sources and provide proper training to per-
RECORD support for this bill from the credit scores, transparency in the reporting
sonnel who handle disputes.
process and use of consumer credit informa-
Americans for Financial Reform, the Giving consumers the tools they need to
tion, high standards for vetting credit infor-
National Consumer Law Center, Con- access their rights, understand their credit-
mation, and a reliable method for contesting
sumer Action, Consumer Federation of worthiness, and control their financial des-
and correcting inaccurate information are
America, Consumer Reports, National tinies by (1) giving consumers the right to
critical to a vibrant housing market and
unlimited free credit reports and free credit
Association of Consumer Advocates, scores online; (2) requiring the Big Three na-
economy. To this end, NAR applauds your ef-
World Privacy Forum, and also the Na- tionwide CRAs to create a simple, easy-to-
forts in H.R. 5332, the Protecting Your Credit
tional Association of Realtors. Score Act of 2020. We are particularly sup-
use portal tool to access online credit re-
JUNE 23, 2020. portive of sections two through six, which
ports and credit scores, as well to exercise
DEAR CHAIRWOMAN WATERS: The under- reflect NAR’s principles on credit reporting.
other important rights such as placing a se-
signed consumer organizations write to sup- While NAR has no position on the primary
curity freeze, initiating a dispute, and opting
port H.R. 5332, the Protecting Your Credit regulator of the CRAs, we appreciate your ef-
out of prescreening (i.e., the use of credit re-
Score Act of 2019 (Gottheimer). This bill will forts in clarifying that important point.
port information to generate offers of cred-
address serious problems in the credit re- Creditor and consumer confidence are crit-
it).
porting system and empower consumers by Improving credit reporting accuracy by (2) ical in the home financing process, and our
providing them with much greater access to requiring CRAs to conduct periodic audits to nation’s housing market and overall econ-
and control over their own information. check for accuracy and (2) mandating that omy benefit tremendously from balanced fi-
Credit reports and credit scores play a Big Three nationwide CRAs use all 9 digits of nancial regulation and appropriate consumer
huge role in determining a consumer’s finan- the consumer’s Social Security number when protection. REALTORS® thank you for your
cial health. Not only do they determine a matching information from a lender to a diligent work to improve the accuracy and
consumer’s ability to obtain credit at a fair consumer’s file, thus preventing mixed files, accountability of consumer credit informa-
price, but they are used by many other sec- which are one of the worst types of errors. tion.
tors—insurance companies, landlords and Improving data security for credit reports Sincerely,
even employers. Despite their importance, by giving the CFPB the authority to write VINCE MALTA,
credit reports are also full of errors, which rules under the Gramm-Leach-Bliley Act to 2020 President, National Association
can cost a consumer thousands of dollars in govern the Big Three nationwide CRAs. of REALTORS®.
higher-priced credit, or worse yet, result in Give consumers a tool to compel CRAs to Ms. WATERS. Madam Speaker, I
the denial of a job, insurance coverage, an fix a credit report by providing them with a yield back the balance of my time.
rfrederick on DSKBCBPHB2PROD with HOUSE
apartment rental, or the ability to open a right to seek injunctive relief so that a court The SPEAKER pro tempore. All time
small business or buy a house. The Federal could order a CRA to correct an error or oth- for debate has expired.
Trade Commission’s definitive study showed erwise follow the law. Pursuant to House Resolution 1017,
that 21% of consumers had verified errors in There are a number of other important re-
their credit reports, 13% had errors that af- forms in the bill, such as giving consumers the previous question is ordered on the
fected their credit scores, and 5% had errors the right to opt out of the selling or sharing bill, as amended.
serious enough to cause them to be denied or of information about them that does not fall The question is on the engrossment
pay more for credit. into the FCRA’s current definition of ‘‘con- and third reading of the bill.
VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00052 Fmt 4636 Sfmt 0634 E:\CR\FM\K26JN7.071 H26JNPT1
June 26, 2020 CONGRESSIONAL RECORD — HOUSE H2571
The bill was ordered to be engrossed are joined by 70 other Members who notice of proposed rulemaking in the
and read a third time, and was read the have cosponsored the resolution. future to help set specific benchmarks,
third time. The Community Reinvestment Act is thresholds, and minimums. It doesn’t
The SPEAKER pro tempore. Pursu- a civil rights act. It is a law enacted in speak highly of a rule when the office
ant to clause 1(c) of rule XIX, further 1977 to prevent the discriminatory says it is half baked.
consideration of H.R. 5332 is postponed. practice of redlining, in which banks A wide range of stakeholders have
f discriminate against prospective cus- criticized OCC’s efforts. For example, a
b 1615 tomers in nearby neighborhoods, often group of civil rights and consumer
based on their racial or ethnic back- groups issued a statement noting: ‘‘The
PROVIDING FOR CONGRESSIONAL
ground. The law requires banks to in- new OCC rules stick with an overly
DISAPPROVAL OF RULE SUB-
vest and lend responsibly in low- and simplistic metrics system that creates
MITTED BY OFFICE OF THE
moderate-income communities where a loophole for banks to exploit, allow-
COMPTROLLER OF THE CUR-
they are chartered. ing them to get a passing CRA rating
RENCY RELATING TO ‘‘COMMU- Unfortunately, implementation of
NITY REINVESTMENT ACT REGU- by making investments in commu-
the Community Reinvestment Act has nities where they can reap the largest
LATIONS’’ not been robust. Today, 98 percent of rewards, while leaving too many credit
Ms. WATERS. Madam Speaker, pur- the banks routinely pass their Commu- needs unmet for underserved con-
suant to House Resolution 1017, I call nity Reinvestment Act exams. How- sumers and neighbors.’’
up the joint resolution (H.J. Res. 90) ever, research has shown that more
During these difficult times, commu-
providing for congressional disapproval than 60 metro areas across the country
nities across the country have taken to
under chapter 8 of title 5, United are now experiencing modern-day red-
the streets to demand justice and to
States Code, of the rule submitted by lining today. These findings clearly
tell their elected officials that they
the Office of the Comptroller of the demonstrate the need to strengthen
can no longer ignore the needs of com-
Currency relating to ‘‘Community Re- the implementation of the law. Unfor-
munities of color. In a letter sup-
investment Act Regulations’’, and ask tunately, the OCC’s rule would do the
porting this resolution from various or-
for its immediate consideration in the opposite.
Despite the warnings of a wide range ganizations led by the Leadership Con-
House.
The Clerk read the title of the joint of stakeholders, former Comptroller ference on Civil and Human Rights and
resolution. Otting rushed to finalize this rule in National Community Reinvestment Co-
The SPEAKER pro tempore. Pursu- his final days on the job. So, without alition, they wrote: ‘‘In the weeks
ant to House Resolution 1017, the joint the support—without the support—of since the OCC finalized its rule, our Na-
resolution is considered read. the Federal Reserve or the Federal De- tion has been facing a long overdue
The text of the joint resolution is as posit Insurance Corporation, the other reckoning with our troubled legacy of
follows: banking regulators were responsible for racial and ethnic discrimination. . . .
H.J. RES. 90 enforcing the law. Now is certainly not the time to weak-
Resolved by the Senate and House of Rep- Mr. Otting appears to have been de- en the most important civil rights laws
resentatives of the United States of America in termined to undermine the Community we have at our disposal to correct
Congress assembled, That Congress dis- Reinvestment Act ever since the law those disparities.’’
approves the rule submitted by the Office of complicated his efforts to quickly ob- Congress must block any effort by
the Comptroller of the Currency relating to the Trump administration to weaken
‘‘Community Reinvestment Act Regula- tain regulatory approval for OneWest
Bank, a bank that he ran with Treas- our civil rights laws and send a strong
tions’’ (85 Fed. Reg. 34734; published June 5,
2020), and such rule shall have no force or ef- ury Secretary Mnuchin, to merge with message to Federal regulators that
fect. another bank in 2015. they should be doing all they can dur-
The SPEAKER pro tempore. The I am deeply concerned that the OCC’s ing this pandemic to help, not hurt,
joint resolution shall be debatable for 1 final rule will harm low-income and low- and moderate-income commu-
hour equally divided and controlled by minority communities that are dis- nities, and especially communities of
the chair and ranking minority mem- proportionately suffering during this color.
ber of the Committee on Financial crisis, effectively turning the Commu- By passing this resolution, Congress
Services. nity Reinvestment Act into the com- will block the OCC’s harmful rule so
The gentlewoman from California munity disinvestment act. that, once the pandemic passes, bank-
(Ms. WATERS) and the gentleman from If this resolution is not adopted, we ing regulators can renew efforts to col-
North Carolina (Mr. MCHENRY) each will have different rules for different laborate, modernize, and strengthen
will control 30 minutes. banks, leading to regulatory arbitrage the Community Reinvestment Act with
The Chair recognizes the gentle- and a race to the bottom of weaker a new joint rulemaking that truly ben-
woman from California. standards that will only hurt the peo- efits the community the law was in-
GENERAL LEAVE ple the law is intended to help. tended to help.
Ms. WATERS. Madam Speaker, I ask Notably, the OCC rule was adopted Madam Speaker, I urge my col-
unanimous consent that all Members with insufficient and incomplete data, leagues in the House to vote ‘‘yes’’ on
may have 5 legislative days within and it incentivizes large deals at the H.J. Res. 90.
which to revise and extend their re- expense of smaller and more contin-
Madam Speaker, I reserve the bal-
marks on H.J. Res. 90 and to insert ex- uous financial transactions that truly
ance of my time.
traneous material thereon. benefit LMI communities.
For example, the OCC final rule al- Mr. MCHENRY. Madam Speaker, I
The SPEAKER pro tempore. Is there
lows CRA credit to be given for activi- yield myself such time as I may con-
objection to the request of the gentle-
ties in LMI-qualified opportunity sume, and I rise in opposition to the
woman from California?
There was no objection. zones, but the rule does not ensure that resolution.
Ms. WATERS. Madam Speaker, I these activities promote community Madam Speaker, as I said, I rise in
yield myself such time as I may con- development that includes affordable opposition to this resolution. First, be-
sume. housing or small business economic de- fore I get into the contents of my dis-
Madam Speaker, I rise in support of velopment. This can lead to the unac- cussion here, I want to thank Chair-
H.J. Res. 90, a Congressional Review ceptable result of banks receiving CRA woman WATERS for her steadfast and
Act resolution of disapproval to nullify funding for building luxury housing in long-time leadership in supporting mi-
the Office of the Comptroller of the opportunity zones, providing no direct nority, rural, low- and middle-income
rfrederick on DSKBCBPHB2PROD with HOUSE
Currency’s rule undermining the Com- benefit to LMI communities. communities, LMI communities. Her
munity Reinvestment Act. Additionally, the OCC concedes it service in the California Assembly and
I introduced this resolution with our does not have all the data it needs to Senate and Congress has been commen-
Consumer Protection and Financial In- properly implement its new CRA surate with that work and that focus.
stitutions Subcommittee chair, Rep- framework, with the rules stating that Committee Republicans share the
resentative MEEKS, and I am proud we the OCC will need to issue yet another chairwoman’s goal of strengthening
VerDate Sep 11 2014 08:57 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00053 Fmt 4636 Sfmt 0634 E:\CR\FM\K26JN7.073 H26JNPT1
File and source
- File
- CREC_crec-2020-06-26_crec-2020-06-26-pt1-pgh2559.pdf
- Size
- 337,928 bytes
- SHA-256
- bf7eab6a3ae77c5e2621d0a8f77ac937b2caa912d2ab29a7ed7bb961f1f68d1f
- Original
- www.govinfo.gov