Senate Looks to Fix ‘Broken’ Credit Reporting System

The Senate Committee on Banking, Housing and Urban Affairs held a hearing yesterday on the credit reporting system. Witnesses included Peggy Twohig from the Bureau of Consumer Financial Protection’s division of supervision, enforcement, and fair lending; and Maneesha Mithal from the Federal Trade Commission’s bureau of consumer protection. In particular, lawmakers noted that the FTC and BCFP lack authority to penalize credit bureaus that underperform; and they expressed concern about consumers’ lack of control over their own information. Twohig said the BCFP is monitoring alternative data options and how it could help expand access to credit for “credit invisible” consumers. She and Mithal were supportive of giving more power to the consumer, but said an opt-in system could be detrimental when it comes to opening access to credit and consumer lending.

HousingWire (07/12/18) Kelsey Ramirez

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