June 14, 2022

Congressman Al Lawson introduces Bill Boosting Credit Repair Agencies Access to Help Consumers

WASHINGTON, D.C. – U.S. Rep. Al Lawson (FL-05) introduced a bill that repeals parts of the Fair Credit Reporting Act (FCRA) to improve credit repair organizations’ (CROs) ability to help creditors fix any errors found in their credit report.

“Citizens deserve the chance to rectify any inaccurate information found on their credit reports,” Rep. Lawson said. “Wrong information on someone’s credit report can be damaging to a person’s future financial endeavors. My goal with this piece of legislation is to remove the obstacles credit repair organizations are experiencing to help their clients financially succeed.”

According to a Federal Trade Commission study, one in five Americans has an error on their credit report, while half of consumers who tried to fix a credit report error abandoned the process without resolution. Millions of Americans rely on CROs for guidance on issues with their credit report. However, due to the exclusion provision in the FCRA, credit reporting agencies can ignore any correspondence sent on behalf of a client by a CRO or nonprofit community organization.

Repealing this provision would promote increased responsiveness in the dispute system by removing an outdated industry protection that perpetuates current systemic failures. It would also bring much needed industry transparency for regulators by identifying all participants in the dispute process.

The bill is endorsed by the Anti-Recidivism Coalition, African American Empowerment Coalition, National Diversity Coalition, and the National Asian American Coalition.