Representative Ayanna Pressley (D-MA) sponsored a bill in the House that she believes will improve our fundamentally flawed credit reporting system. According to the Federal Trade Commission 1 in 5 Americans have found errors in their credit report. However, of the 20% of individuals that have filed disputes, only 13% have resulted in a change in the borrower’s score.
The authors of the bill believe the CREDIT Act will create a more transparent and equitable credit reporting process. The following is a breakdown of the proposed bill:
1. Altering the dispute process:
- Extends the investigation period by two weeks
- Requires credit reporting agencies to notify the agencies that provide the information found in your credit report of a dispute within five days.
- Credit reporting agencies must notify the consumer of the results within 5 days.
2. Boosting scores:
- Removes student loan and medical bill delinquencies
- Shortens the lifespan of negative events on a credit report
For more information, contact your Stockton bankruptcy attorney at (209) 438-4990.