Considering all the damage negative listings can do to a credit report and, in turn, a credit score, it’s a good thing we have so many rights afforded to us by the Fair Credit Reporting Act. Not only does it regulate how and what gets reported, but also the length of time negative listings stay on a report, as well as the processes for having negative listings removed. That said, there is always room for improvement, as we are reminded of by a new petition to amend the Fair Credit Reporting Act.
On the Whitehouse.gov website, you can sign a petition that calls for the following changes to the Fair Credit Reporting Act:
- Add an incentive to regain credit standing when old debts are paid.
- Dismissed or withdrawn Bankruptcy should not be reported. This punishes consumers who didn’t go through with it.
- Protections for victims of all financial or violent crimes as well as medical issues, divorce (innocent spouse) or natural disasters.
- Protection against duplicate reporting by assigning to collection or outside counsel.
- 5 years vs. 7 for statute of limitations to expire and 7 years for discharged bankruptcy.
I signed the petition, and invite you to do the same, as these all seem like no-brainer improvements to me, particularly stronger laws to protect against situations that we have no control over. There is simply no sound argument for anyone’s credit taking a hit due to reporting of a situation stemming from a financial or violent crime. And any negative credit reporting stemming from medical issues or natural disasters should carry little weight (if any at all) compared to other types of delinquent debt.
To move forward, the petition needs 10,000 signatures by March 1, 2013. Sign the petition at Whitehouse.gov.