[Congressional Record Volume 145, Number 47 (Wednesday, March 24, 1999)]
[Extensions of Remarks]
[Page E544]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        CONSUMER CREDIT REPORT ACCURACY AND PRIVACY ACT OF 1999

                                 ______
                                 

                       HON. LUCILLE ROYBAL-ALLARD

                             of california

                    in the house of representatives

                       Wednesday, March 24, 1999

  Ms. ROYBAL-ALLARD. Mr. Speaker, I am pleased to join eleven of my 
colleagues in introducing the Consumer Credit Report Accuracy and 
Privacy Act of 1999. My bill gives every American the right to examine 
and correct their credit reports free of charge.
  The credit reporting industry affects the lives of virtually every 
working American. Information used in a credit report can affect the 
ability to obtain a job, credit card, insurance policy, or even a place 
to live. For this reason, it is imperative that the credit industry 
maintain accurate records on American consumers.
  In spite of the fact that the reporting of false delinquencies, 
errors in personal demographic information, and missing credit accounts 
all have the potential to result in the denial of credit, only six 
states (Colorado, Georgia, Massachusetts, Maryland, New Jersey and 
Vermont) offer consumers free credit reports on request. For the rest 
of the nation, most consumers cannot obtain a free credit report until 
after they have already been denied credit or suspect they are a victim 
of fraud.
  The fact that the three largest credit bureaus have 450 million files 
on individual consumers and process over 2 billion pieces of data every 
month presents a daunting challenge to maintain the most accurate 
records possible. Given these figures, the chance of acquiring 
inaccurate information is highly likely. In fact, some studies have 
shown that up to one third of credit reports could contain serious 
mistakes.
  It is important to note that the credit reporting industry gathers 
its information without the direct consent of American consumers, and 
in turn, uses this information for its own profit through the sales of 
reports to credit grantors, employers, insurance companies, and 
landlords. Consumers should have the right to know what is being said 
about them, especially if the information will affect their overall 
credit standing.
  My bill will also help to address the growing problem of identify 
theft. Increasingly, criminals are able to obtain personal credit 
reports and assume a consumer's credit identity. In the process, they 
are able to run up huge debts while ruining the unsuspecting victim's 
credit records. We could minimize this problem if consumers more 
regularly audited their own credit reports to find out who else has 
been looking at them.
  This bill has the endorsement of the nation's key consumer advocacy 
organizations, including U.S. Public Interest Research Group, Consumer 
Action, Community Reinvestment Committee, Consumer Federation of 
America, Association of Community Organizations for Reform Now, and the 
National Community Reinvestment Coalition.
  In closing, the Consumer Credit Report Accuracy and Privacy Act 
encourages consumers to be pro-active in reviewing and protecting their 
personal credit history from possible mistakes and fraud. My bill 
simply gives consumers the right to know what credit bureaus are saying 
about them without having to pay a fee for the privilege.

                          ____________________