AFSA Sound Alarm on Credit Repair Scams
AFSA signed a joint trade urging the Senate Banking Committee to introduce legislation to limit the threat credit repair scams pose to consumers and credit markets.
As several state and federal regulators have warned, credit repair organizations take advantage of consumers trying to improve their financial situation by inundating financial services providers with meritless and duplicative credit report claims. Unfortunately, these activities “jam” the credit reporting system with illegitimate claims that divert resources from authentic consumer disputes, which cost Americans money for no actual value.
A fair and accurate credit reporting system is essential for both hardworking Americans and businesses that provide affordable credit.
The joint trades letter asks Senate Banking Committee Chair Sen. Sherrod Brown (D-OH) and Ranking Member Sen. Tim Scott (R-SC) to modernize the Credit Repair Organizations Act and rein in credit repair scams that lure consumers with the promise of a quick fix.
The American Bankers Association, ACA International, Consumer Bankers Association, Consumer Data Industry Association, Credit Union National Association, National Association of Federally-Insured Credit Unions, National Bankers Association, and the U.S. Chamber of Commerce also signed the letter.
May 4th, 2023
