The FIX Credit Reporting Errors Act would require credit reporting agencies to forward any documents the consumer has provided as evidence in their dispute to parties seeking their credit score
WASHINGTON – Today, U.S. Senators Amy Klobuchar (D-MN) and Steve Daines (R-MT) introduced bipartisan legislation to help consumers correct errors on their credit reports. A series of reports by the Federal Trade Commission (FTC) found that millions of consumer credit reports contain mistakes and errors, often leading to less favorable loan terms or denial of credit. Resolving these errors can take a long time and many consumers have incorrect information on their credit reports as they go through the dispute process. The FIX Credit Reporting Errors Act would require credit reporting agencies to forward any documents the consumer has provided as evidence in their dispute to parties seeking the consumer’s credit score. For example, if a credit report erroneously showed that a consumer had an outstanding balance on a credit card that was closed, the consumer would be able to include in their credit report the letter from the credit card company stating the account is closed and paid in full.
"A small mistake on a credit report can have devastating consequences—from higher interest rates to being denied a mortgage, inaccurate credit reports can be incredibly damaging,” Klobuchar said. “Our bipartisan legislation will give consumers the tools they need to correct errors on their credit reports so that they can continue their lives and protect their financial futures.”
“A simple error on a credit report can lead to unwarranted trouble for Montana families trying to obtain a mortgage or a loan,” Daines said. “We need common sense solutions to streamline the dispute resolution process when an error is made to ensure Montanans have access to affordable credit.”
Credit reporting agencies have been criticized in the past for performing lackluster investigations and providing little additional documentation to parties seeking a consumer’s credit score. This bill would allow consumers to take proactive steps to correct their credit reports.