Congressman Cohen Introduces Bill To Give Consumers Free Credit Score
February 3, 2010
H.R. 4538, the Fair Access to Credit Scores Act of 2010, would amend the Fair Credit Reporting Act to require the inclusion of credit scores with free annual credit reports provided to consumers.
“A good credit score means better interest rates on mortgages, bank loans and credit cards, smaller deposits for rent or utilities and even lower insurance premiums,” Congressman Cohen said. “My legislation would require that a consumer’s credit score be included with their annual free credit report.”
Additionally, H.R. 4538 would also call for a GAO study on factors used to determine bankruptcy risk scores – the number that indicates the likelihood of an individual filing for bankruptcy. Although it has been used for over twenty years to assess risk in lending, few consumers know of this risk score, much less how to adjust it downward.
“Bankruptcy risks scores are cloaked in mystery and unlike credit scores not readily available to consumers,” Congressman Cohen said, “As the Chairman of the Judiciary Subcommittee that deals with our nation’s bankruptcy laws, I believe that Congress and, most importantly, consumers deserve to know the factors used to determine a bankruptcy risk score, how a bankruptcy risk score impact the ability to receive loans and the actions that consumers can take to improve their bankruptcy risk score.”
H.R. 4538 is supported by the Consumers Union, National Association of Consumer Advocates, Consumer Action, Consumer Federation, National Council of La Raza, National Consumer Law Center (on behalf of its low-income clients), U.S. PIRG and Center for Economic Justice.
Congressman Cohen has also introduced HR 3149, The Equal Employment For All Act. This bill would give some of our most vulnerable, “credit challenged” citizens – students, recent college graduates, low-income families, senior citizens, and minorities – the opportunity to begin rebuilding their credit history by obtaining a job. Far too often, employers turn down “credit challenged” applicants because they have erroneously linked credit scores to potential job performance.
“At a time when people are struggling to find jobs, credit checks should not be used as a basis to deny employment to otherwise qualified candidates,” Congressman Cohen said. “Financial problems reflected on a negative financial report often stem from circumstances outside of an individuals control, such as medical problems, illnesses, or layoffs. It is unfair and makes no sense to further penalize those job seekers who want to work hard but have had financial difficulties by denying employment solely on the basis of their credit.”
HR 3149 is endorsed by numerous organizations, including the NAACP, NAACP Legal Defense and Educational Fund, National Organization for Women, National Consumer Law Center, Leadership Conference on Civil Rights, National Fair Housing Alliance, Consumer Action, National Association of Consumer Advocates, Unite Here, National Employment Law Project, U.S. Public Interest Research Group, Legal Action Center, National H.I.R.E. Network, Community Legal Services of Philadelphia, Center for Economic Justice, Asian American Justice Center, Communication Workers of America, AFL-CIO, Lawyers’ Committee for Civil Rights Under Law, International Union, United Automobile, Aerospace & Agricultural Implement Workers of America, National Employment Lawyers Association, National Partnership for Women and Families, National Women’s Law Center and Women Employed.
________________________
Steven Broderick
Communications Director
Congressman Steve Cohen (TN-9)
1005 Longworth House Office Building
Washington, DC 20515
Direct: 202-226-7916
Main: 202-225-3265
steven.broderick@mail.house.gov
“A good credit score means better interest rates on mortgages, bank loans and credit cards, smaller deposits for rent or utilities and even lower insurance premiums,” Congressman Cohen said. “My legislation would require that a consumer’s credit score be included with their annual free credit report.”
Additionally, H.R. 4538 would also call for a GAO study on factors used to determine bankruptcy risk scores – the number that indicates the likelihood of an individual filing for bankruptcy. Although it has been used for over twenty years to assess risk in lending, few consumers know of this risk score, much less how to adjust it downward.
“Bankruptcy risks scores are cloaked in mystery and unlike credit scores not readily available to consumers,” Congressman Cohen said, “As the Chairman of the Judiciary Subcommittee that deals with our nation’s bankruptcy laws, I believe that Congress and, most importantly, consumers deserve to know the factors used to determine a bankruptcy risk score, how a bankruptcy risk score impact the ability to receive loans and the actions that consumers can take to improve their bankruptcy risk score.”
H.R. 4538 is supported by the Consumers Union, National Association of Consumer Advocates, Consumer Action, Consumer Federation, National Council of La Raza, National Consumer Law Center (on behalf of its low-income clients), U.S. PIRG and Center for Economic Justice.
Congressman Cohen has also introduced HR 3149, The Equal Employment For All Act. This bill would give some of our most vulnerable, “credit challenged” citizens – students, recent college graduates, low-income families, senior citizens, and minorities – the opportunity to begin rebuilding their credit history by obtaining a job. Far too often, employers turn down “credit challenged” applicants because they have erroneously linked credit scores to potential job performance.
“At a time when people are struggling to find jobs, credit checks should not be used as a basis to deny employment to otherwise qualified candidates,” Congressman Cohen said. “Financial problems reflected on a negative financial report often stem from circumstances outside of an individuals control, such as medical problems, illnesses, or layoffs. It is unfair and makes no sense to further penalize those job seekers who want to work hard but have had financial difficulties by denying employment solely on the basis of their credit.”
HR 3149 is endorsed by numerous organizations, including the NAACP, NAACP Legal Defense and Educational Fund, National Organization for Women, National Consumer Law Center, Leadership Conference on Civil Rights, National Fair Housing Alliance, Consumer Action, National Association of Consumer Advocates, Unite Here, National Employment Law Project, U.S. Public Interest Research Group, Legal Action Center, National H.I.R.E. Network, Community Legal Services of Philadelphia, Center for Economic Justice, Asian American Justice Center, Communication Workers of America, AFL-CIO, Lawyers’ Committee for Civil Rights Under Law, International Union, United Automobile, Aerospace & Agricultural Implement Workers of America, National Employment Lawyers Association, National Partnership for Women and Families, National Women’s Law Center and Women Employed.
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________________________
Steven Broderick
Communications Director
Congressman Steve Cohen (TN-9)
1005 Longworth House Office Building
Washington, DC 20515
Direct: 202-226-7916
Main: 202-225-3265
steven.broderick@mail.house.gov