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House Passes Pressley Bill to Reform Broken Credit Reporting System

NNPA NEWSWIRE — Unfortunately, our system of consumer credit reporting is badly broken, and consumers have little recourse. It is typical for credit reports to be filled with unacceptable errors that are difficult for consumers to correct. A Federal Trade Commission (FTC) study found that 1 in 5 consumers have verified errors in their credit reports, and 1 in 20 consumers have errors so serious that they would be denied credit or need to pay more for it. This means about 42 million consumers have errors in their credit reports, and 10 million have errors that can be life altering.

Published

5 years ago

January 30, 2020

Oakland Post

Congresswoman Maxine Waters (CA-43), Chairwoman of the House Committee on Financial Services.

WASHINGTON — The U.S. House of Representatives passed H.R. 3621, the Comprehensive Credit Reporting Enhancement, Disclosure, Innovation, and Transparency Act of 2020 (“Comprehensive CREDIT Act”), legislation sponsored by Rep. Ayanna Pressley (D-MA), by a vote of 221 to 189.

H.R. 3621 would overhaul the credit reporting system by empowering consumers with more control of their data and requiring consumer reporting agencies (CRAs) like Equifax, TransUnion, and Experian, to better ensure that the information on consumer credit reports is accurate and complete.

See below for Chairwoman Waters’ floor statement on the bill.

As Prepared for Delivery

Mr. Chairman, I rise today in strong support of H.R. 3621, the Comprehensive Credit Reporting Enhancement, Disclosure, Innovation, and Transparency Act, legislation sponsored by Representative Ayanna Pressley of Massachusetts. This package of bills builds upon reforms that Members of the Financial Services Committee have been developing for several Congresses.

Mr. Chairman, credit reporting is unlike any other business. Consumers are not customers of credit reporting agencies—they are the product. Credit reporting agencies package up consumers’ data to sell to lenders, employers and other businesses.

Unfortunately, our system of consumer credit reporting is badly broken, and consumers have little recourse. It is typical for credit reports to be filled with unacceptable errors that are difficult for consumers to correct. A Federal Trade Commission (FTC) study found that 1 in 5 consumers have verified errors in their credit reports, and 1 in 20 consumers have errors so serious that they would be denied credit or need to pay more for it. This means about 42 million consumers have errors in their credit reports, and 10 million have errors that can be life altering.

Consumers are frustrated with the current system. In 2018, the Consumer Financial Protection Bureau received 126,300 consumer complaints on credit reporting, which was more than one-third of all complaints submitted. The Consumer Bureau received more complaints about credit reporting than any other issue.

This legislative package makes critical reforms to help consumers by addressing problems with the credit reporting system.

The legislation includes H.R. 3642, the Improving Credit Reporting for All Consumers Act, a bill sponsored by Representative Alma Adams, which would address burdens consumers experience when trying to remove errors from their consumer reports, including by providing a new right to appeal the results of initial reviews about the accuracy or completeness of disputed items on the report.

The package also includes H.R. 3622, the Restoring Unfairly Impaired Credit and Protecting Consumers Act, a bill sponsored by Representative Rashida Tlaib. This part of the bill would limit how long adverse credit information stays on consumer reports, and it would protect consumer victims by removing adverse information relating to predatory, discriminatory or otherwise unlawful loans made by a financial institution. It would also prohibit reporting debt relating to medically-necessary procedures and delay reporting by one year for other medical debt.

In addition, the package includes H.R. 3614, the Restricting Use of Credit Checks for Employment Decisions Act, a bill sponsored by Representative Al Lawson. This part of the bill would prohibit employers from using credit reports for employment decisions, except when a credit report is otherwise required to conduct a background check by Federal, state or local law or for a national security clearance.

H.R. 3621, the Student Borrower Credit Improvement Act, a bill sponsored by Representative Pressley, is also included in the legislation. This part of the bill would help student borrowers who may have been delinquent on paying their private student loans to repair their credit after they demonstrate a history of timely loan repayments for these loans, similar to how the credit reports of borrowers with Federal student loans can be rehabilitated.

Another key measure included in this package is H.R. 3629, the Clarity in Credit Score Formation Act sponsored by Representative Stephen Lynch. This legislation would direct the CFPB to provide oversight and set standards for validating the accuracy and predictive value of credit scoring models, and it would promote innovation by requiring a study on how the use of non-traditional data might impact the availability and affordability of credit for consumers with limited or no traditional credit histories.

Finally, the package includes H.R. 3618, the Free Credit Scores for Consumers Act sponsored by Representative Joyce Beatty, which would direct the nationwide CRAs to give consumers free copies of their credit scores that are used by creditors in making credit decisions, as determined by the CFPB, whenever consumers obtain their free annual consumer reports.

I am pleased that this bill also includes a provision that I have worked on with a range of other members that excludes from credit reports any adverse information about a federal employee and others who are affected by a government shutdown.

I urge all Members to support these commonsense reforms to improve the nation’s consumer reporting system and benefit hardworking American consumers.

Chairwoman Waters and Committee Democrats have worked tirelessly on solutions to repair the nation’s broken credit reporting system.

In July 2019, the Committee passed critical legislation to reform credit reporting, credit scores and the credit reporting agencies.

In February 2019, Chairwoman Waters convened a full Committee hearing entitled, “Who’s Keeping Score? Holding Credit Bureaus Accountable and Repairing a Broken System,” with the Chief Executive Officers of Equifax, Experian, and TransUnion.

In October 2017, Committee Democrats, led by then-Ranking Member Waters, convened a minority day hearing on ensuring the integrity of our country’s consumer reporting system and safeguarding consumer data. The CEOs of Equifax, Experian and TransUnion each declined Waters’ invitation to testify.

Congresswoman Maxine Waters (CA-43), Chairwoman of the House Committee on Financial Services.

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Recently Approved Budget Plan Favors Wealthy, Slashes Aid to Low-Income Americans

BLACKPRESSUSA NEWSWIRE — The most significant benefits would flow to the highest earners while millions of low-income families face cuts

Published

1 week ago

March 21, 2025

Stacy M. Brown

By Stacy M. Brown

BlackPressUSA.com Senior National Correspondent

The new budget framework approved by Congress may result in sweeping changes to the federal safety net and tax code. The most significant benefits would flow to the highest earners while millions of low-income families face cuts. A new analysis from Yale University’s Budget Lab shows the proposals in the House’s Fiscal Year 2025 Budget Resolution would lead to a drop in after-tax-and-transfer income for the poorest households while significantly boosting revenue for the wealthiest Americans. Last month, Congress passed its Concurrent Budget Resolution for Fiscal Year 2025 (H. Con. Res. 14), setting revenue and spending targets for the next decade. The resolution outlines $1.5 trillion in gross spending cuts and $4.5 trillion in tax reductions between FY2025 and FY2034, along with $500 billion in unspecified deficit reduction.

Congressional Committees have now been instructed to identify policy changes that align with these goals. Three of the most impactful committees—Agriculture, Energy and Commerce, and Ways and Means—have been tasked with proposing major changes. The Agriculture Committee is charged with finding $230 billion in savings, likely through changes to the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps. Energy and Commerce must deliver $880 billion in savings, likely through Medicaid reductions. Meanwhile, the Ways and Means Committee must craft tax changes totaling no more than $4.5 trillion in new deficits, most likely through extending provisions of the 2017 Tax Cuts and Jobs Act. Although the resolution does not specify precise changes, reports suggest lawmakers are eyeing steep cuts to SNAP and Medicaid benefits while seeking to make permanent tax provisions that primarily benefit high-income individuals and corporations.

To examine the potential real-world impact, Yale’s Budget Lab modeled four policy changes that align with the resolution’s goals:

A 30 percent across-the-board cut in SNAP funding.
A 15 percent cut in Medicaid funding.
Permanent extension of the individual and estate tax cuts from the 2017 Tax Cuts and Jobs Act.
Permanent extension of business tax provisions including 100% bonus depreciation, expense of R&D, and relaxed limits on interest deductions.

Yale researchers determined that the combined effect of these policies would reduce the after-tax-and-transfer income of the bottom 20 percent of earners by 5 percent in the calendar year 2026. Households in the middle would see a modest 0.6 percent gain. However, the top five percent of earners would experience a 3 percent increase in their after-tax-and-transfer income.

Moreover, the analysis concluded that more than 100 percent of the net fiscal benefit from these changes would go to households in the top 20 percent of the income distribution. This happens because lower-income groups would lose more in government benefits than they would gain from any tax cuts. At the same time, high-income households would enjoy significant tax reductions with little or no loss in benefits.

“These results indicate a shift in resources away from low-income tax units toward those with higher incomes,” the Budget Lab report states. “In particular, making the TCJA provisions permanent for high earners while reducing spending on SNAP and Medicaid leads to a regressive overall effect.” The report notes that policymakers have floated a range of options to reduce SNAP and Medicaid outlays, such as lowering per-beneficiary benefits or tightening eligibility rules. While the Budget Lab did not assess each proposal individually, the modeling assumes legislation consistent with the resolution’s instructions. “The burden of deficit reduction would fall largely on those least able to bear it,” the report concluded.

Stacy M. Brown

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A Threat to Pre-emptive Pardons

BLACKPRESSUSA NEWSWIRE — it was a possibility that the preemptive pardons would not happen because of the complicated nature of that never-before-enacted process.

Published

1 week ago

March 21, 2025

Oakland Post

By April Ryan

President Trump is working to undo the traditional presidential pardon powers by questioning the Biden administration’s pre-emptive pardons issued just days before January 20, 2025. President Trump is seeking retribution against the January 6th House Select Committee. The Trump Justice Department has been tasked to find loopholes to overturn the pardons that could lead to legal battles for the Republican and Democratic nine-member committee. Legal scholars and those closely familiar with the pardon process worked with the Biden administration to ensure the preemptive pardons would stand against any retaliatory knocks from the incoming Trump administration. A source close to the Biden administration’s pardons said, in January 2025, “I think pardons are all valid. The power is unreviewable by the courts.”

However, today that same source had a different statement on the nuances of the new Trump pardon attack. That attack places questions about Biden’s use of an autopen for the pardons. The Trump argument is that Biden did not know who was pardoned as he did not sign the documents. Instead, the pardons were allegedly signed by an autopen. The same source close to the pardon issue said this week, “unless he [Trump] can prove Biden didn’t know what was being done in his name. All of this is in uncharted territory. “ Meanwhile, an autopen is used to make automatic or remote signatures. It has been used for decades by public figures and celebrities.

Months before the Biden pardon announcement, those in the Biden White House Counsel’s Office, staff, and the Justice Department were conferring tirelessly around the clock on who to pardon and how. The concern for the preemptive pardons was how to make them irrevocable in an unprecedented process. At one point in the lead-up to the preemptive pardon releases, it was a possibility that the preemptive pardons would not happen because of the complicated nature of that never-before-enacted process. President Trump began the threat of an investigation for the January 6th Select Committee during the Hill proceedings. Trump has threatened members with investigation or jail.

Oakland Post

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Reaction to The Education EO

BLACKPRESSUSA NEWSWIRE — Meanwhile, the new Education EO jeopardizes funding for students seeking a higher education. Duncan states, PellGrants are in jeopardy after servicing “6.5 million people” giving them a chance to go to college.

Published

1 week ago

March 21, 2025

Oakland Post

By April Ryan

There are plenty of negative reactions to President Donald Trump’s latest Executive Order abolishing the Department of Education. As Democrats call yesterday’s action performative, it would take an act of Congress for the Education Department to close permanently. “This blatantly unconstitutional executive order is just another piece of evidence that Trump has absolutely no respect for the Constitution,” said Rep. Maxine Waters (D-CA) who is the ranking member on the House Financial Services Committee. “By dismantling ED, President Trump is implementing his own philosophy on education, which can be summed up in his own words, ‘I love the poorly educated.’ I am adamantly opposed to this reckless action, said Rep. Bobby Scott who is the most senior Democrat on the House Education and Workforce Committee.

Morgan State University President Dr. David Wilson chimed in saying “I’m deeply concerned about efforts to shift federal oversight in education back to the states, particularly regarding equity, justice, and fairness. History has shown us what happens when states are left unchecked—Black and poor children are too often denied access to the high-quality education they deserve. In 1979 then President Jimmy Carter signed a law creating the Department of Education. Arne Duncan, former Obama Education Secretary, reminds us that both Democratic and Republican presidents have kept education a non-political issue until now. However, Duncan stressed Republican presidents have contributed greatly to moving education forward in this country.

During a CNN interview this week Duncan said during the Civil War President Abraham “Lincoln created the land grant system” for colleges like Tennessee State University. “President Ford brought in IDEA.” And “Nixon signed Pell Grants into law.” In 2001, the No Child Left Behind Act was signed into law by President George W. Bush which increased federal oversight of schools through standardized testing. Meanwhile, the new Education EO jeopardizes funding for students seeking higher education. Duncan states, PellGrants are in jeopardy after servicing “6.5 million people” giving them a chance to go to college. Wilson details, “that 40 percent of all college students rely on Pell Grants and student loans.”

Rep. Alma Adams (D-NC) says this Trump action “impacts students pursuing higher education and threatens 26 million students across the country, taking billions away from their educational futures. Meanwhile, During the president’s speech in the East Room of the White House Thursday, Trump criticized Baltimore City, and its math test scores with critical words. Governor West Moore, who is opposed to the EO action, said about dismantling the Department of Education, “Leadership means lifting people up, not punching them down.”