A bill to amend the Fair Credit Reporting Act has been introduced in the Senate that would prohibit the reporting of negative items on individuals’ credit reports during the coronavirus outbreak.
The bill, S. 3508 – the Disaster Protection For Workers’ Credit Act, was introduced this week by Sen. Brian Schatz [D-Hawaii], a member of the Senate Banking Committee, and Sen. Sherrod Brown [D-Ohio], the committee’s ranking member.
Along with preventing the reporting of negative credit items during the outbreak, the bill would also provide free, unlimited credit reports and credit scores for a year after the end of the crisis. The moratorium on reporting negative items would last for four months but could be extended for individuals who face “lasting financial hardship” from the outbreak.
“Our bill will make sure people who fall behind on their bills won’t take a hit to their credit scores,” said Sen. Schatz, in a statement. “Protecting credit scores now will give people a chance to rebuild their lives and our economy.”
The bill has been referred to the Senate Banking Committee for consideration.
“During these uncertain economic times, Americans shouldn’t have to worry about their credit scores as they work to make ends meet,” said Sen. Brown, in a statement. “This is an important fix to ensure Americans can focus on staying healthy and supporting themselves and their families, not worrying about accessing credit in the future.”