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NAFCU calls for credit reporting improvements as senators hold oversight hearing
NAFCU Vice President of Legislative Affairs Brad Thaler wrote to the Senate Banking Committee Wednesday ahead of its hearing to provide oversight over credit reporting agencies today, offering support for the use of alternative models that more accurately capture creditworthy borrowers.
“NAFCU believes that improvements can be made to the current credit scoring system that allow credit unions to better serve their members without creating onerous new burdens,” wrote Thaler.
Thaler reiterated credit unions’ support of a fair and accurate credit reporting system, but warned against efforts that call for blanket suppression of negative credit information. The association recently flagged concerns for lawmakers about credit repair scams that target vulnerable Americans and “jam the credit reporting system with illegitimate claims” and is also monitoring litigation related to the Fair Credit Reporting Act.
In addition, Thaler highlighted the need for a national data security standard for entities that collect and store consumers’ personal and financial information, especially those entities that are not already subject to the same stringent requirements as depository institutions. Thaler stressed the need for depository institutions to be made aware of data breaches at credit bureaus as soon as possible so that the institution can proactively monitor any affected accounts.
NAFCU will monitor today’s hearing and continue to advocate for a fair and accurate credit reporting system.