Comprehensive Credit Reporting Enhancement, Disclosure, Innovation, and Transparency Act of 2020

Comprehensive Credit Reporting Enhancement, Disclosure, Innovation, and Transparency Act of 2020 or the Comprehensive CREDIT Act of 2020

This bill provides for additional consumer credit protections, sets forth requirements for credit reporting agencies, and prohibits the inclusion of specified information on credit reports.

TITLE I—IMPROVEMENTS TO THE DISPUTE PROCESS

The dispute process for consumers challenging information contained on their credit report is revised for challenges (1) through the credit reporting agency, and (2) through the furnisher of credit information. Credit reporting agencies must disclose to consumers how to dispute this information. If a credit report is revised as a result of a dispute, the credit reporting agency must provide the consumer a free copy of the revised report and credit score. Furnishers of credit information must maintain all records to substantiate the credit information provides to credit reporting agencies. Consumers must be notified when a furnisher provides specific negative credit information within five business days of it being reported to a credit reporting agency.

The bill also establishes an appeals process for disputed credit information and sets forth procedures for the credit reporting agencies and furnishers of this information. Credit reporting agencies must identify disputed information on a credit report and ensure accuracy and completeness in credit reports. The bill also establishes the right for courts to award injunctive relief to require compliance with consumer credit laws.

TITLE II—FREE CREDIT SCORES FOR CONSUMERS

The bill requires credit reporting agencies to provide free credit scores to consumers along with their free annual credit reports. The bill also provides for

• additional free credit scores and credit reports when a consumer is disputing information contained on their credit report or has had previously removed information reinserted into their report, and
• automatic free credit scores and credit reports to consumers who have obtained a fraud alert or security freeze.

Credit reporting agencies must provide consumers with additional information regarding the calculation of their credit score, including factors that adversely effected the score, and specific actions a consumer may take to improve the score.

The bill establishes educational credit scores to be used by a consumer in understanding how a lender or creditor may use the information contained in a consumer's credit report if a current credit score is not available.

Private education lenders, motor vehicle lenders, indirect auto lenders, and residential mortgage lenders must give consumers free copies of consumer reports or credit scores used for making underwriting decisions before consumers sign the respective loan agreements.

TITLE III—STUDENT BORROWER CREDIT IMPROVEMENT ACT

The bill prohibits a credit reporting agency from furnishing a credit report containing any adverse item of information relating to a delinquent or defaulted private education loan of a borrower who has a specified demonstrated history of loan repayment.

TITLE IV—CREDIT RESTORATION FOR VICTIMS OF PREDATORY ACTIVITIES AND UNFAIR CONSUMER REPORTING PRACTICES

The bill revises the information included on a credit report by

• requiring removal of adverse information that resulted from fraudulent lending activity regarding private education loans and residential mortgage loans,
• expediting the removal of debt that is no longer owed,
• prohibiting the inclusion of an arrest that did not result in conviction,
• in general reducing the time period adverse information stays on a credit report from seven years to four years, and
• limiting the inclusion of certain medical debt.

TITLE V—CLARITY IN CREDIT SCORE FORMATION

The Consumer Financial Protection Bureau (CFPB) must regulate credit score models by establishing standards for validating the accuracy and predictive value of these models. The bill also gives the CFPB the authority to prohibit the use of certain factors in credit score models. The CFPB must report on the impact of the inclusion of nontraditional data in these models.

TITLE VI—RESTRICTIONS ON CREDIT CHECKS FOR EMPLOYMENT DECISIONS

A credit reporting agency is prohibited from providing a consumer's credit information for employment purposes, unless the information is for a national security investigation, for a background check or investigation required by regulation, or otherwise required by law.

TITLE VII—PROHIBITION ON MISLEADING AND UNFAIR CONSUMER REPORTING PRACTICES

The bill prohibits automatic renewals for promotional consumer credit products and services, allows the CFPB to set maximum fees for products and services offered by credit reporting agencies, and allows for multiple credit inquiries of the same type without penalty to a consumer's credit score.

Additionally, the bill directs the CFPB to issue rules to provide for

• access to consumer reporting information for nonnative English speakers, the visually impaired, and the hearing impaired; and
• the registration of credit reporting agencies.

The bill also establishes credit protections for consumers affected by a government shutdown.

TITLE VIII—PROTECTIONS AGAINST IDENTITY THEFT, FRAUD, OR A RELATED CRIME

The bill revises fraud alert protections to allow for an extension of these protections upon request of the consumer if the threat of fraud is ongoing. The bill also requires a credit reporting agency to provide free credit monitoring and identity theft protection services to victims of fraud, the unemployed, recipients of public assistance, active duty uniformed consumer, and those 65 years of age and older.

The bill expands to victims of fraud existing consumer protections applicable to victims of identity theft, including free credit scores, additional free credit reports, and access to records of fraudulent activity. The CFPB must develop procedures for reporting fraud and other related crime.

TITLE IX—MISCELLANEOUS

Contract provisions that violate specified consumer protections or that are against the public interest are null and void.

The Government Accountability Office (GAO) must study (1) the use of credit reports and credit scores in housing determinations, (2) the effects on future lending of credit scores impacted by defaulted or delinquent private student loans, and (3) credit reporting agency compliance with consent orders.

The bill revises consumer credit protections for servicemembers. The bill (1) extends consumer credit protections to certain active duty uniformed consumers in a combat zone or aboard a U.S. vessel, (2) prohibits the inclusion on a credit report of adverse credit information that occurred while a uniformed consumer was engaged in that type of active duty, and (3) provides for negative credit information alerts to such consumers. The bill also adds to those groups covered by specified active duty credit protections individuals in the commissioned corps of the National Oceanic and Atmospheric Administration and the Public Health Service.

The bill allows for the reporting of certain positive consumer credit information to credit reporting agencies. Specifically, a person may report information related to a consumer's performance in making payments either under a lease agreement for a dwelling or pursuant to a contract for a utility or telecommunications service. The GAO must report on the consumer impact of such reporting.

Nationwide credit reporting agencies are subject to supervision and examination by the CFPB with respect to cybersecurity.