A bill has been introduced in the Senate seeking to give consumers greater control over how and when their credit reports are shared by credit reporting agencies in an attempt to undo what the bill’s sponsor labeled a “backwards” system that is currently in place.
More information about S. 1327, the Consumer Credit Control Act, which was introduced by Sen. Jack Reed [D-R.I.] and co-sponsored by Sen. Chris Van Hollen [D-Conn.], can be accessed by clicking here.
The full text of the bill has not yet been made available, but Sen. Reed shared details about it during remarks made in the Senate last week when the proposed legislation was introduced.
The current system, in which the credit reporting agencies maintain databases of information about consumers, puts Americans at risk of having their identities stolen, Sen. Reed said during his remarks, citing information published by the National Consumer Law Center. Credit reports are often shared with companies in the financial services industry without the consent of the consumers themselves.
“The Consumer Credit Control Act aims to address these concerns and fix the current upside down system,” Sen. Reed said in his remarks. “Our legislation, at no cost to the consumer, seeks to give Americans greater control over when and how their consumer reports are released when applying for new credit, a loan, or insurance. It also requires consumer reporting agencies to verify a consumer’s identity and secure the consumer’s permission before releasing consumer reports in instances that are particularly susceptible to identity theft and fraud. Additionally, our legislation requires every consumer reporting agency to take appropriate steps to prevent unauthorized access to the consumer reports and personal information they maintain.”
The intention of the bill is to make it harder for criminals to open fraudulent accounts in the names of other consumers while also cutting down on “trigger leads” where information about consumers is sold by credit bureaus when consumers take certain actions, like applying for a mortgage or auto loan.
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