Senate Addresses Consumer Interests in the Fair Credit Reporting Act

The U.S. Senate Committee on Banking, Housing, and Urban Affairs held a hearing July 31 to address measures to enhance the Fair Credit Reporting Act (FCRA). The Hon. John W. Snow, Secretary of the Treasury, testified that permanent reauthorization of the FCRA is a priority of the Bush Administration. Other important issues discussed were mandatory full reporting to increase credit report accuracy, a statute of limitations for consumer disputes, access to free credit reports, identity theft protections, and the General Accounting Office (GAO) report on consumer credit accuracy.

“Permanent reauthorization of the expiring provisions remains the top priority of the National Association of Independent Insurers (NAII) and its member companies. These provisions are essential to the ability of NAII member companies and a wide variety of other financial services providers to best serve consumers,” said Carl Parks, senior vice president, government relations.

NAII appreciates that Chairman Richard C. Shelby (R-Ala.) has been holding open forums to discuss issues associated with the FCRA. “In the pursuit of worthy objectives, an important and well known phrase to remember might be ‘first do no harm.’ Congress’ must not unintentionally damage a system which has served consumers and businesses well for more than three decades. This sentiment was spoken eloquently at today’s hearing by Sen. Robert Bennett (R-Utah),” added Parks.

NAII strongly supports national uniform treatment of credit information and supports the renewal of the seven the expiring FCRA preemptions. Renewal of the expiring preemptions will keep intact the national system that governs the use of credit information for all businesses and consumers. NAII opposes enactment of state laws that unduly or excessively restrict use of credit information by insurers in the underwriting and rating process.

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