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Finally, Credit Scores Would Be Free Under Proposed Credit Reporting Reform Act of 2016

May 19th, 2016 · No Comments · Credit Scores

by Kristy Welsh

(Last Updated On: December 21, 2017)

Free credit scores under proposed Credit Reporting Reform Act of 2016We are long overdue for the same right to free credit scores as we already have to free credit reports. A bill amending the Fair Credit Reporting Act would do just that. Under the Comprehensive Consumer Credit Reporting Reform Act of 2016, you would be guaranteed free access to your credit score at least once a year, which would be a tremendous help during the credit repair process.

How the Amendment Would Make Credit Scores Free

If the bill passes, the three major credit reporting bureaus – Experian, Equifax, and TransUnion – would be required to prominently display the following on their website home page:

  • Hyperlink that reads “Get Your Free Annual Credit Reports along with either your Credit Scores or Educational Credit Scores provided for under Federal Law,” or something to that effect.
  • Disclosure that reads “Consumer’s Right to Free Credit Scores, Educational Credit Scores, and Reports under Federal Law,” or something to the effect.

The disclosure would include a statement letting consumers know of their right to request a free annual credit score (as well as free credit report, to which consumers are already entitled).

Beyond the standard free credit score once a year, the bill states that consumers would be entitled to subsequent credit scores under any of the following circumstances:

1) When unemployed and intending to apply for employment within 60 days.

2) When receiving public welfare assistance.

3) When they have a reasonable belief that their report contains inaccuracies as a result of fraud.

4) When they assert in good faith a suspicion they have been or are about to become a victim of identity theft, fraud, or a related crime, or harmed by the unauthorized disclosure of financial or personally identifiable information.

5) When they file a dispute or an appeal of the results of a dispute with a consumer reporting agency or a person who furnished information to the consumer reporting agency regarding the accuracy or completeness of the information contained on their report.

6) After an adverse action is taken against them, or they receive a risk-based pricing notice.

7) When a mortgage lender, private educational lender, indirect auto lender, or motor vehicle lender obtains and their reports or scores for underwriting purposes.

8) After a furnisher of information discovers it has furnished inaccurate or incomplete information to a consumer reporting agency, and the furnisher notifies the agency of the error.

Wait, There’s More to the Credit Reporting Reform Act

Giving you the right to free credit scores is just one of several improvements the new bill would make to the credit reporting system, including improvements to the dispute process, shortening the amount of time negative information stays on your credit reports, and federal oversight of credit scoring models.

If you want to learn more, here’s a PDF of the Comprehensive Consumer Credit Reporting Reform Act of 2016 in its entirety.

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