More COVID-19 Impact on the FCRA

A couple more articles have come out detailing some states’ plans to protect consumers’ FCRA rights since the coronavirus/COVID-19 pandemic started.

The first is the story about several Attorneys General sending a letter to the CFPB regarding relaxing the FCRA obligations:

First, the CFPB’s announcement it will not enforce the CARES Act’s requirements could discourage consumers from taking advantage of the accommodations lenders are required to offer under the CARES Act or those they are offering voluntarily, Nessel said.

Second, the CFPB’s announcement it will not require consumer reporting agencies to investigate consumer disputes within 30 days puts consumers at risk, according to the news release.

And third, Nessel said consumer reporting agencies must be vigilant about accurately reporting consumer credit, which can only be done by following the requirements established by the FCRA as amended by the CARES Act.

Second is another letter from some Attorneys General to Equifax, Experian, and TransUnion:

“As we confront the new realities under COVID-19, Americans everywhere are searching for ways to secure financial relief without risking their credit,” said Attorney General Becerra. “Congress delivered the CARES Act, needed support, and legal protection for the millions who are hurting. But the Trump Administration, at the worst time, has decided that it will not enforce consumer financial protection rules that apply to credit reporting services. This is the worst time for the federal government to take the cop off the consumer protection beat. State AGs will continue to perform enforcement and oversight of the credit reporting bureaus. We urge the federal government to do the same.” 

As the pandemic continues, we will certainly see more evolution on policy and enforcement.