SECOND REGULAR SESSION

House Concurrent Resolution No. 46

93RD GENERAL ASSEMBLY

5690L.01I

      Whereas, in a recent study, the United States Public Interest Research Group (USPIRG) found that one in four credit reports contain serious errors; and

      Whereas, the United States Fair Credit Reporting Act of 1971 governs credit reporting agencies, including Experian, Equifax, and Trans Union which are the three largest credit reporting agencies in the United States with national databases; and

            Whereas, the Fair Credit Reporting Act was amended in 2003 by the Fair and Accurate Credit Transactions Act (FACTA) to address the ever-increasing problem of identify theft. FACTA included stronger protections for consumers by increasing the responsibility of the credit reporting agencies to investigate consumer disputes; and

            Whereas, under the Fair Credit Reporting Act, both the credit reporting agencies and the credit information providers, such as banks, finance companies, department stores, taxing authorities, landlords, and other credit grantors, are responsible for correcting inaccurate or incomplete information in credit reports; and

            Whereas, under the FACTA provisions, a consumer may dispute erroneous or inaccurate information directly with the credit information provider or with the credit reporting agency. Upon notice of disputed information, the credit information provider or credit reporting agency must investigate the items in question and cannot report negative information while the investigation is pending; and

            Whereas, upon completion of an investigation, the consumer is provided with written results of the investigation and a free copy of the consumer's credit report if the investigation results in a change in the consumer's credit report; and

            Whereas, since December 2004, financial institutions that extend credit must send consumers a notice before and no later than 30 days after negative information is furnished to a credit reporting agency, such as late payments, missed payments, partial payments, or any other form of default; and

            Whereas, while these changes are an important step in protecting consumers against errors and inaccuracies in their credit reports, the federal act does not go far enough to ensure a timely correction of any errors in a credit report by the credit reporting agencies and credit information providers; and

            Whereas, without provisions requiring the timely correction of errors and inaccuracies by credit reporting agencies and credit information providers, consumers could still face months or even years of red tape in correcting errors and inaccuracies, resulting in denials of extension of consumer credit based on errors and inaccuracies in credit reports; and

            Whereas, to fully protect consumers from an unfair loss of credit worthiness based on erroneous and inaccurate credit reports, credit reporting agencies and credit information providers must be subject to strict time limitations for the posting of information and correcting erroneous and inaccurate information contained in consumer credit reports:

            Now, therefore, be it resolved that the members of the House of Representatives of the Ninety-third General Assembly, Second Regular Session, the Senate concurring therein, hereby urges the United States Congress to further amend the Fair Credit Reporting Act to impose strict time limits on credit reporting agencies and credit information providers regarding the posting of information and the correction of erroneous and inaccurate information contained in consumer credit reports; and

            Be it further resolved that the Chief Clerk of the Missouri House of Representatives be instructed to prepare properly inscribed copies of this resolution for each member of the Missouri Congressional Delegation.