A bill has been introduced in the House of Representatives that reduce the amount of time that adverse information stays on consumers’ credit reports and prohibit any medical debt from being included on a credit report — among other provisions.
A copy of the bill. H.R. 5180, the Restoring Unfairly Impaired Credit & Protecting Consumers Act, is available by clicking here. The bill was introduced by Rep. Rashida Tlaib [D-Mich], and currently has no co-sponsors.
The bill would amend the Fair Credit Reporting Act by shortening the amount of time that most adverse information stays on consumers’ credit reports to four years from seven. It would also mandate that any adverse item that is fully paid or settled be removed from a consumer’s credit report within 45 days. Any adverse item related to a debt arising from a medical procedure — which is undefined in the bill — would be barred from being included on a consumer’s credit report. Credit reporting information related to predatory loans or otherwise fraudulent activity would also be removed from credit reports.
““The use of credit reports — which frequently contain errors — is now more than ever a huge barrier to a thriving life for many of our residents,” Rep. Tlaib said in a statement. “Americans should not be denied access to basic needs that improve their quality of life, like employment, housing, or transportation because of medical debt. Our neighbors should not have to go without necessities because they fell victim to fraudulent activity or predatory lenders. Survivors of domestic and financial abuse do not deserve to have debt resulting from that abuse on their credit report. This bill is about fairness, opportunity, and justice, and I urge my colleagues in Congress to finally get this bill signed into law.”
The bill is endorsed by the National Consumer Law Center, the Consumer Federation of America, and Public Citizen, among other groups.