Bill Overview
Title: To amend the Fair Credit Reporting Act to permit certain credit repair organizations to dispute credit information directly with a furnisher, and for other purposes.
Description: This bill allows a credit repair organization to dispute consumer credit information provided to a credit reporting agency. Under current law, only consumers are allowed to dispute this information.
Sponsors: Rep. Lawson, Al, Jr. [D-FL-5]
Target Audience
Population: Individuals utilizing credit scores
Estimated Size: 100000000
- Currently, the ability to directly dispute credit information with furnishers is limited to consumers themselves.
- The bill extends this ability to credit repair organizations, which are companies that offer services to help consumers improve their credit scores.
- Many consumers rely on credit repair organizations to manage credit disputes on their behalf.
Reasoning
- The policy aims to broaden the ability to dispute credit information by including credit repair organizations.
- This will likely have a higher impact on individuals who are already utilizing or interested in utilizing credit repair services.
- There will be variations in impact based on age, income, and geographical location, as these can influence credit standing and the likelihood of utilizing credit repair services.
- The policy's effectiveness can be subjectively measured by the improvement in personal perceived wellbeing, as individuals with improved credit scores may experience better financial opportunities.
Simulated Interviews
Sales Representative (Miami, FL)
Age: 28 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- This policy will be a game-changer for people like me who struggle to manage credit issues.
- Having professionals handle my disputes can save time and possibly improve outcomes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Construction Worker (Houston, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 2.0 years
Commonness: 12/20
Statement of Opinion:
- I didn't know such services existed, but if they can help fix my credit issues, I'm for it.
- Skeptical about additional costs that might come with these services.
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 | 4 | 4 |
| Year 10 | 4 | 3 |
| Year 20 | 3 | 3 |
Small Business Owner (New York, NY)
Age: 35 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- I take care of my credit and have never needed such services.
- I see no direct benefit from this policy for me personally.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
College Student (San Francisco, CA)
Age: 21 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- I'm learning about credit; having more tools sounds good, but I'm not sure how relevant it is to me now.
- Interested in knowing more about services available as I start building my own credit.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
Accountant (Phoenix, AZ)
Age: 50 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- I don't see a significant impact on my wellbeing from this policy.
- I can appreciate how it might help others managing complex credit issues.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
App Developer (Chicago, IL)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 8/20
Statement of Opinion:
- This policy could be helpful if it simplifies and speeds up corrections of credit report errors.
- Wary of potential scams from less reputable credit repair companies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Retired (Boise, ID)
Age: 61 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- If this can fix my credit issue, I'll be happy.
- I don't want to deal with the complexities of credit disputes myself.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Teacher (Charlotte, NC)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 10/20
Statement of Opinion:
- I hope this will improve my chances of getting more favorable refinance rates.
- Concerned about issues of dependency on third parties for personal financial matters.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Entrepreneur (Los Angeles, CA)
Age: 55 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 1.0 years
Commonness: 7/20
Statement of Opinion:
- This policy could mean less hassle for me when resolving personal credit issues.
- Curious about cost-effectiveness and if all agencies are legit.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Nurse (Atlanta, GA)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- I think easier credit dispute processes will help me secure better loan terms.
- I hope credit repair agencies won't charge too much for this service.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $60000000)
Year 2: $45000000 (Low: $35000000, High: $55000000)
Year 3: $40000000 (Low: $30000000, High: $50000000)
Year 5: $35000000 (Low: $30000000, High: $45000000)
Year 10: $30000000 (Low: $25000000, High: $40000000)
Year 100: $20000000 (Low: $15000000, High: $30000000)
Key Considerations
- Regulatory agencies will need to establish clear guidelines and oversight mechanisms for credit repair organizations interacting with furnishers.
- Concerns regarding potential abuse or misuse by credit repair organizations, requiring careful regulatory monitoring.