United States House Financial Services Subcommittee on Financial Institutions holds hearing on credit report accuracy and Fair Credit Reporting Act liability changes

The United States House Financial Services Committee’s Subcommittee on Financial Institutions held a hearing on the consumer credit reporting market, focusing on how accurate credit reports support lenders’ risk management and consumers’ access to credit under the Fair Credit Reporting Act (FCRA). Members and witnesses debated the effects of suppressing certain categories of debt from credit reports, with banking industry testimony warning that removing valid information could force lenders to adjust underwriting by lowering standards, increasing pricing, or tightening credit and could complicate ability-to-repay verification under the Truth in Lending Act. The hearing also examined expanding credit through alternative data such as rent, utilities, and cash-flow information, presented as a way to help consumers with thin or no credit files. On FCRA liability, Representative Barry Loudermilk highlighted H.R. 5775, the FCRA Liability Harmonization Act, and witness testimony described it as aligning FCRA remedies with other consumer protection laws by capping statutory damages and eliminating punitive damages in class actions while preserving actual damages, individual causes of action, and reasonable attorney-fee provisions.