WASHINGTON—America’s Credit Unions is urging lawmakers to prioritize accurate and complete credit reporting while avoiding overly burdensome regulations in a letter sent to the House Financial Services Subcommittee on Financial Institutions and Monetary Policy ahead of a hearing today expanding access to credit.
In the letter, the trade group said any changes to the credit reporting system should focus on “commonsense efforts” that ensure lenders have a full and reliable picture of consumers’ creditworthiness, according to the organization.
The correspondence was submitted in advance of the subcommittee’s hearing today, titled “Promoting Access to Credit for Everyday Americans,” which is examining legislative proposals tied to credit reporting and consumer access to financial services.
America’s Credit Unions emphasized that reforms should be carefully tailored so they do not impose unnecessary compliance costs on credit unions, particularly smaller institutions. The group warned that excessive regulatory burdens could ultimately harm consumers if credit unions are forced to divert resources away from serving members.
“Consumers lose when their credit union must divert resources to keep up with overly burdensome regulations designed for big banks,” the organization said in outlining its position.
Additional Bills Addressed
The letter also addressed several bills under consideration by the subcommittee, expressing support for measures intended to improve accuracy in credit reporting and protect consumers.
Among them:
- The FCRA Liability Harmonization Act (H.R. 5775), which the group said would align the Fair Credit Reporting Act with other consumer protection laws and help shield credit unions from abusive litigation while maintaining safeguards for consumers.
- The Ending Scam Credit Repair Act (H.R. 306), aimed at curbing deceptive practices by credit repair organizations.
The organization also voiced general support for additional proposals, including the Credit Access and Inclusion Act and legislation targeting fraud in the Consumer Financial Protection Bureau’s complaint database, saying both would contribute to more accurate credit reporting and improved access to credit.
Other Concerns Raised
At the same time, America’s Credit Unions raised concerns about potential regulatory changes that could reduce the amount of information available to lenders. The group pointed specifically to discussions around removing medical debt from credit reports, arguing that such a move could lead to an incomplete credit profile and negatively affect both lenders and borrowers.
Overall, the organization said policymakers should ensure any reforms strike a balance between expanding access to credit and preserving the integrity and completeness of the data used to make lending decisions.
Treasury to Share Info on Cybersecurity
Separately, Treasury’s Office of Cybersecurity and Critical Infrastructure Protection (OCCIP) announced a new effort it said is designed to strengthen cybersecurity around digital assets by providing timely, actionable cybersecurity information to eligible U.S. digital asset firms and industry organizations.
At present, OCCIP shares actionable cybersecurity information with credit unions and other U.S. financial institutions with a goal of helping to better identify, prevent, and respond to cyber threats targeting consumers and networks. Under the new initiative, eligible U.S. digital asset firms and industry organizations that meet its criteria will be able to receive the same information, Treasury said.
