[Congressional Record Volume 156, Number 66 (Wednesday, May 5, 2010)]
[Senate]
[Pages S3291-S3292]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ORDER FOR ADJOURNMENT
Mr. DODD. If there is no further business to come before the Senate,
I ask it adjourn under the previous order, following the remarks of
Senator Mark Udall of Colorado.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from Colorado.
Mr. UDALL of Colorado. Mr. President, are we in morning business?
The PRESIDING OFFICER. Yes, we are.
AMENDMENT NO. 3778 to S. 3217
Mr. UDALL of Colorado. Mr. President, I rise today to speak about a
bipartisan amendment which Senator Lugar and I have filed based on our
bill, the Fair Access to Credit Scores Act of 2010. This amendment is
cosponsored by 17 of our colleagues from both sides of the aisle, which
I have to say is a rare bipartisan piece of legislation. Our amendment
corrects one of the fundamental inequities in our financial system by
giving Americans free annual access to their credit score.
The problem is that most people have been misled to believe that
people have access to a free credit score, but that simply is not true.
They only have access to their report. A credit report
[[Page S3292]]
tells consumers what outstanding credit accounts they have open, such
as student loans or credit cards, perhaps a car or home loan.
Unfortunately, it tells Americans little else. On the other hand, your
credit score, which our legislation makes available, has the critical
information consumers need to know.
This score is the very first point of entry into our entire financial
system which rates each and every one of us. It is a number that banks,
lenders, and large financial firms have easy access to, while hard-
working Americans--the engine of our economy--do not have access to it.
A credit score affects consumers' interest rates, monthly payments on
home loans, and can even affect a consumer's ability to buy a car, rent
an apartment or get phone or Internet service. They can be paying
interest rates on their home loan, car loan, or student loan which are
two to three times higher because of their credit score. This inequity
absolutely needs to be fixed if Americans are to take control of their
finances. How do we expect them to do that if they do not know if their
credit score is bad or good?
Mr. President, I will be insisting on a vote because we must put
consumers back in control of their finances by offering Americans
annual access to their credit score when they access their free annual
credit report.
I know lobbyists have been calling everyone in the Capitol. These
credit reporting agencies have misled Americans for years, and now
their lobbyists are trying to mislead my colleagues in the Senate. They
are making calls and asking Members to fight this transparency and
coming up with all sorts of phony arguments. The truth is, this
amendment accomplishes what the television commercials and their fine
print have claimed for years--the offer of a free credit score.
Our bipartisan amendment would simply require that a credit score be
included when a consumer accesses their free annual credit report once
per year from each agency. This would provide some context for
consumers who access their free annual credit report and allow them to
take responsibility for their financial situation.
Since we filed this amendment--and I want to thank the Presiding
Officer who has joined me on this amendment--credit reporting agencies
and their lobbyists have been hard at work perpetuating fine-print
arguments. They claim our amendment would confuse consumers; that the
information belongs to the agency and not the people; and they have
even been threatening Members it will cost them jobs in their
particular State.
I don't have to tell those watching and my colleagues that those
arguments are overstated and are really no grounds for keeping
Americans from having access to their individual credit score.
According to credit reporting agencies and their lobbyists, providing a
free score for transparency and therefore a sense of financial standing
simply would distract and confuse the American consumer.
How can they say these scores would confuse Americans, even though
they are happy to sell them that same information? These same lobbyists
we are discussing also claim that credit scores belong to them. In
other words, a credit score to gauge the creditworthiness of a
consumer, based upon their personal information, is the property of the
credit reporting agency, not the consumer. So, in other words, they are
making the argument it belongs to the agency, not to the individual who
creates the credit score.
I can't help but wonder: Would a doctor say someone's blood pressure
reading is their information, not their patient's?
I have to say I am disappointed to hear these credit reporting
agencies are even making the suggestion that this amendment might
result in job losses in their particular States. These are tough times,
and who wouldn't be moved by the argument about jobs. But what they do
not tell you when they make that argument is that they opposed the 2003
law that required disclosure of consumers' credit reports and the
industry has tripled its business since that time. It has tripled
because consumers have gotten engaged. They care about those credit
reports. And I would predict that if we have free credit scores, it
will only enhance the interest of consumers to have additional
financial literacy.
Talking about jobs, I have some of these jobs in my State, but I
don't consider deceptive practices and keeping Americans from their
personal information to be a kind of jobs program. In fact, if
anything, not knowing your credit score could be the greatest threat to
employment for any given individual. Employers are increasingly using
this information to decide whether to hire one person over another.
I came to the Senate floor yesterday to speak about the frequent
television commercials and Internet advertisements we have all seen
which falsely claim to offer consumers free access to their credit
score. Their ads clearly indicate to Americans that their credit score
is critical information. What they do not tell you--and I know the
Presiding Officer shares some personal experiences with me on this
account--is that they want to lure you into a costly monthly monitoring
service that can cost hundreds of dollars a year.
What is comical about all this is that credit reporting agency
representatives are walking the Halls of Congress as I speak telling
Members that our bill is somehow unfair and unfounded. They want to
protect a Federal law that has given them a monopoly on these scores
and continues to direct unwitting consumers their way. They are using
the same tactics of confusion and misdirection to fight our amendment.
We agree with the credit reporting agencies that a credit score is
important information, and perhaps their misleading ads, if anything,
have convinced consumers they need to know this information. However,
luring Americans into a costly credit monitoring service is simply not
fair.
As I begin to close, I want to say that we have all come to the floor
this week from both sides of the aisle explaining that what we want to
do is to protect consumers and to do what is right for Main Street in
this important and historic bill we are considering. We have a chance
to right this wrong here and now. That is why the Consumer Federation
of America, Third Way, the Consumers Union, and a wide range of
consumer advocates support this legislation.
While free access to a consumer's credit score is only a small part
of the larger reforms that are needed, it addresses one of the
fundamental inequities that pervade the financial system.
I wish to thank a group of bipartisan Senators who have held strong
amidst the lobbying blitz by these large multibillion-dollar entities
to stand with consumers and cosponsors of my bipartisan amendment. That
list includes Senators Lugar, Bond, Cochran, Brown of Massachusetts,
Schumer, Lieberman, Levin, Hagan, Brown of Ohio, Shaheen, McCaskill,
Lautenberg, Menendez, Tom Udall, Gillibrand, Burris, and Begich.
I hope and expect more Members will join us in cosponsoring this
amendment and vote for it when it comes up for a vote.
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