California Attorney General Reminds Credit Reporting Agencies to Comply with the Fair Credit Reporti

California Attorney General Xavier Becerra on Tuesday, as part of a coalition of 22 attorneys general, sent letters to the nation’s three largest credit reporting agencies (CRA) – Experian, Equifax and Transunion – reminding the companies of their continued obligation during the COVID-19 pandemic to comply with the Fair Credit Reporting Act (FCRA). The COVID-19 pandemic has created an economic disruption that has caused unemployment to skyrocket and workers to lose wages. Today’s letter serves as a caution to CRAs that the coalition of attorneys general is committed to protecting consumers and will continue to enforce all federal and state requirements during the pandemic.

“As we confront the new realities under COVID-19, Americans everywhere are searching for ways to secure financial relief without risking their credit,” said Attorney General Becerra. “Congress delivered the CARES Act, needed support, and legal protection for the millions who are hurting. But the Trump Administration, at the worst time, has decided that it will not enforce consumer financial protection rules that apply to credit reporting services. This is the worst time for the federal government to take the cop off the consumer protection beat. State AGs will continue to perform enforcement and oversight of the credit reporting bureaus. We urge the federal government to do the same.”

Today’s letter comes after the Consumer Financial Protection Bureau’s (CFPB) recent announcement that it will not enforce certain requirements of the FCRA during the COVID-19 pandemic. In March, Congress enacted the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which extends relief to struggling consumers and amends the FCRA to allows consumers to obtain CARES Act relief without incurring lasting harm to their credit. Specifically, the CARES Act requires companies that provide information to CRAs to report a credit obligation as “current” if the obligation was current prior to the grant of a CARES Act accommodation. This CARES Act provision is critically important to consumers because it ensures that consumers obtain essential relief without jeopardizing their credit. In the letter, the coalition states that it expects CRAs to comply with all applicable provisions of the CARES Act and the FCRA. Additionally, the coalition emphasized that it will actively monitor and enforce such compliance. FULL ARTICLE

© 2020

InteliCrunch is a free service provided by a collective of people who monitor the background screening industry and how events affect not only the people in it, but even more importantly, the real human impact the industry has on today's society.*All third party logos and / or images used on this website are the sole property and / or registered trademarks of their respective companies or copyright holders. Use of these logos, images or likenesses does not, in any way, imply the endorsement of InteliCrunch by any of the businesses, brands or individuals represented, their parent companies, officers, employees, partners, or affiliates. Any such usage is for informational / news purposes only.  Any / all articles, announcements, releases or third-party-authored content is / are linked back to the original "source"  and author credit given  Furthermore, InteliCrunch is not responsible for, and does not warrant the safety of any third-party links or sites to which any viewer may be directed from InteliCrunch.  InteliCrunch has made reasonable efforts to ensure that any news or informational links on the site are from "known and reputable"  sources / websites.