Bill Overview
Title: To amend the Fair Credit Reporting Act to exclude information relating to certain evictions from consumer reports, and for other purposes.
Description: This bill prohibits from inclusion in a consumer credit report information related to an eviction occurring during the COVID-19 national emergency or occurring in the 30 days after the termination of such emergency.
Sponsors: Rep. Cohen, Steve [D-TN-9]
Target Audience
Population: Individuals who faced eviction during the COVID-19 pandemic
Estimated Size: 10000000
- The bill targets individuals who have been evicted during the COVID-19 national emergency period.
- Approximately 3.6 million evictions were filed in a typical year in the United States before the pandemic.
- Many eviction moratoriums were in place during the COVID-19 pandemic, affecting the housing stability of millions of renters.
- This bill could impact anyone globally who has lived in or moved to the US during the pandemic and faced eviction.
Reasoning
- The policy is aimed at people who faced eviction during the COVID-19 pandemic, a group estimated to be between 5 and 10 million in the US.
- It is important to note that the policy only prevents eviction from appearing on credit reports, which impacts financial health indirectly by potentially improving credit scores.
- Those who faced pandemic-related evictions will differ in income, security, and housing situation pre- and post-policy, influencing their subjective well-being.
- The policy budget limits the amount of financial relief or support provided, meaning not all individuals within the target group may experience a high impact.
- The individual impact will vary; individuals in areas with high eviction rates or those already financially unstable are more likely to see well-being improvements.
- Some people will feel little impact if their housing stability and financial health were already resilient during the pandemic.
Simulated Interviews
Restaurant Manager (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- The stress of eviction during COVID-19 was immense.
- Not seeing this on my credit report gives me a chance to rebuild our lives.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Freelance Graphic Designer (Austin, TX)
Age: 28 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Removing the eviction gives me more confidence in applying for rentals.
- Still, the financial loss during the pandemic was substantial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 6 | 5 |
Teacher (Chicago, IL)
Age: 35 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- The policy's great since I'd rather not have the eviction on my financial history.
- My current situation is good, so I don't expect much change.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Retail Worker (Los Angeles, CA)
Age: 50 | Gender: female
Wellbeing Before Policy: 3
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- It feels like a smart move since it can help those with already low credit standing.
- My personal struggles won't entirely be solved by this, but it's a start.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 3 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Bartender (Portland, OR)
Age: 23 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- This is a helping hand when I'm applying for places to live now.
- It's a huge relief not to fight with lower credit from an eviction.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Retired (Miami, FL)
Age: 60 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 2.0 years
Commonness: 2/20
Statement of Opinion:
- It's beneficial to me since every bit helps on a fixed income.
- But the worry over more evictions isn't gone.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Tech Worker (San Francisco, CA)
Age: 31 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 3/20
Statement of Opinion:
- I can move past the eviction momentarily but it's really about job stability that I care for.
- This is more of a perk than a critical aid.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 5 |
Nurse (Dallas, TX)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- I'm hoping this actually makes renting feel less daunting in the near future.
- Financial recovery isn't instant, so I'm cautious.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Small Business Owner (Seattle, WA)
Age: 42 | Gender: female
Wellbeing Before Policy: 3
Duration of Impact: 8.0 years
Commonness: 3/20
Statement of Opinion:
- The bill would help my credit rating look rosier, which is necessary for business relaunch.
- It's a small victory in a bigger battle with finances.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 3 |
| Year 2 | 5 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Factory Worker (Phoenix, AZ)
Age: 55 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- These policies show someone cares about veterans who struggled during COVID.
- This won't fix everything but it means a lot.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $7000000)
Year 2: $4500000 (Low: $2500000, High: $6500000)
Year 3: $4000000 (Low: $2000000, High: $6000000)
Year 5: $3500000 (Low: $1500000, High: $5500000)
Year 10: $2000000 (Low: $1000000, High: $3000000)
Year 100: $500000 (Low: $300000, High: $700000)
Key Considerations
- This policy could improve financial accessibility for individuals who faced eviction during the pandemic by excluding these records from credit reports.
- The administrative cost of implementing the policy will require coordination with credit reporting agencies.
- The policy could have mixed effects on property owners and renters, affecting housing market dynamics.
- Potential legal challenges or disputes could arise regarding the retroactive alteration of credit reports.