FCRA Protection for Military Families

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May 20, 2015

Craig E. Bertschi, Partner – McRae Bertschi LLC

Generally speaking, I have a laissez-faire attitude when it comes to legislation and business regulations. However, I’ve recently become aware of a worthwhile piece of legislation designed to provide safeguards for credit reporting on active-duty military personnel.

Entitled the “Military Families Credit Reporting Act,” the Bill would require credit reporting agencies to:
(1) Notify active-duty military personnel that negative information about them has been received from a creditor or other information provider;
(2) Inform active-duty military personnel of their right to dispute the validity of negative information about them; and
(3) Conspicuously disclose the fact that the negative information, be it a past due account, loan default, etc. occurred at the time the consumer was on active duty.

The Congressional statement of purpose set forth in the bill is well-put. “It is the sense of Congress that any person making use of a consumer report containing an item of adverse information should, if the action or inaction that gave rise to the item occurred while the consumer was an active duty military consumer, take such fact into account when evaluating the creditworthiness of the consumer.”

Bravo! Let’s hope that this bill, which appears to have bipartisan support, can run the gauntlet in Congress.

Here is the govtrack link to the Bill, if you’d like to follow its progress: https://www.govtrack.us/congress/bills/113/hr4672

Tip ‘o the Hat to Brian Abner at CreditRepairVIP.com, who first posted about the Bill.