It took about six months from the time the House Financial Services Committee moved the bill from U.S. Representative Rashida Tlaib (D-13th District) that would provide relief to consumers struggling to recover from predatory loans, medical bills or fraudulent activity on the floor of the House, for it must pass.
With a vote of 221-189, the bill passed the House and will go to the US Senate for consideration.
The Unjustly Impaired Credit Restoration and Consumer Protection Act (HR 3622) directs credit reporting agencies to remove negative information from credit reports regarding loans that are unfair, misleading, abusive, or otherwise illegal. It shortens the length of time negative information stays on a credit report from seven to four years, prohibits credit reporting agencies from including necessary medical procedures, and prohibits them from reporting other medical recoveries up to 365 days after delinquency.
“The use of credit reports has grown and is more than ever a huge barrier to economic opportunity,” Tlaib said in a statement. “Americans shouldn’t be prevented from meeting basic needs that improve quality of life, such as jobs, housing or transportation, because of medical debt. Our neighbors shouldn’t have to do without necessities because “They have been victims of fraudulent activity or predatory lenders. Survivors of financial and domestic abuse do not deserve to have a debt resulting from this abuse on their credit report. This bill is about fairness, opportunity and justice, and I am so proud that he is now heading to the Senate. ”
In her year in the House so far, Tlaib has made removing credit barriers for people trying to improve themselves a priority for her.
“Consumer credit can determine a person’s ability to own a home, is used to set auto insurance rates, and is even used to determine eligibility for employment, so it’s absolutely critical that we Guarantees to consumers, especially residents of communities like the ones I represent that have historically had limited or no access to credit, are able to have as many tools as possible to secure it, ”Tlaib said. “For too long a sudden health crisis or emergency room visit has meant years of denial of housing, transportation or other necessities due to a medical article on a credit report – this bill will change that . “
If passed by the Senate and enacted, the bill would establish the right of victims of financial abuse to have adverse information associated with an abuser’s fraudulent activity removed from their consumer reports and allow victims of financial abuse. victims of identity theft by removing the requirement to report in order to exercise the identity theft protections available under the Federal Credit Reporting Act.
“Consumers suffering from situations beyond their control should not be punished or excluded from future opportunities to build or rebuild credit,” Tlaib said. “HR 3622 is a victory for working families in my district and across the country because it will prevent this from happening. goes through initiatives that provide the equity that has been denied them. “
The new law, if passed:
• Shorten the length of time negative and negative information stays on a credit report from seven to four years
• Prohibit debts resulting from medically necessary procedures from being included in credit reports
• Extend the time before all other medical debts are reported from 180 days to 365 days
• Require credit bureaus to remove negative information resulting from predatory lending and fraudulent activity
• Give survivors of domestic and financial abuse a way to get negative information resulting from abuse removed from their credit reports.