[Congressional Record Volume 141, Number 10 (Wednesday, January 18, 1995)]
[Extensions of Remarks]
[Page E121]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                  CONSUMER REPORTING REFORM ACT OF 1995

                                 ______


                         HON. HENRY B. GONZALEZ

                                of texas

                    in the house of representatives

                       Wednesday, January 18, 1995
  Mr. GONZALEZ. Mr. Speaker, today I am introducing the Consumer 
Reporting Reform Act of 1995, a bill to change the way the consumer 
reporting industry conducts business. Like its predecessors, this bill 
will lead to increased accuracy in credit reports and result in an 
industry that is both more responsive to consumer complaints about 
errors and more cognizant of the consumers' right to financial privacy.
  I have worked on legislation to overhaul the credit reporting system 
and credit bureaus for the past several Congresses. The 25-year-old law 
that governs this industry has simply failed to keep pace with the 
exploding technology in this area and the new issues it presents. When 
the Fair Credit Reporting Act was enacted, many credit bureaus were 
keeping manual records. Today, the big three credit bureaus each have 
200 million computerized files on American consumers. Nearly every 
decision made about us--whether to approve a loan, rent an apartment, 
insure property, or offer a job--could involve a credit report. The 
credit bureaus must get it right. But, with the enormous numbers of 
files and information amassed by the credit bureaus on American 
consumers, the implications for errors and invasions of privacy are 
staggering.
  The issues that plagued consumers when Congress first began looking 
anew into this area in the 1980's have not been resolved by the mere 
passage of time. I am sure my colleagues recognize the anguish 
consumers feel when a computer wrongly labels them deadbeats and shows 
up on their credit reports. In Vermont, this happened to an entire 
town. And imagine the enduring damage that a credit bureau can do by 
failing to correct an error. I know that Members of this House have 
experienced the frustration of an unresponsive credit bureau firsthand 
or have heard the anger of their constituents. And, in an age where 
computers talk to each other, companies are gaining more and easier 
access to sensitive financial information about consumers without the 
consent or even the knowledge of consumers.
  Congress cannot stand idle as errors on credit reports wreck peoples' 
lives. Congress cannot turn a blind eye as companies and machines 
transfer reams of financial and personal information about consumers 
who remain in the dark. And yet the current Fair Credit Reporting Act 
does not go far enough to prevent such errors or such incursions into 
consumers' privacy from occurring.
  Congress has taken a good hard look at these problems. I and my 
colleagues on both sides of the aisle, particularly Chairman Leach, 
worked long and hard last year with representatives of consumer groups 
and the credit reporting industry to craft the very fair and balanced 
bill that the House passed twice last year on a voice vote. The 
legislation I am introducing today is virtually identical to last 
year's compromise bill. Let me emphasize that the bill I am introducing 
does not contain my wish list for reforms--it is a genuine compromise. 
And it is a product of earnest, good faith negotiation between 
Democrats and Republicans and between industry and consumer groups.
  In sum, the bill requires that consumers be educated about their 
rights regarding their credit reports; it provides consumers with 
cheaper access to their reports; it allows consumers to put a stop to 
some of the junk mail that fills their mail boxes; it provides for 
prompt correction of errors in credit reports; and it gives consumers a 
right of action against businesses that neglect to correct errors in 
the course of a reinvestigation. This bill also provides new 
opportunities for businesses to prescreen consumers for credit and to 
share information about consumers among affiliated companies.
  Because of the need for reform, and the overwhelming bipartisan 
consensus on this piece of legislation that was demonstrated repeatedly 
last year, the House should proceed expeditiously with consideration of 
this bill. The consumers of this country should not and will not 
tolerate further delay.


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