U.S. Rep. French Hill (R-AR) introduced legislation in the House that seeks to permit additional sources of payment and financial data in reviewing a person’s credit.
The Credit Access and Inclusion Act (H.R. 3418) would allow public housing authorities as well as utility and telecom companies to report payment data to credit reporting agencies. These additional data sources in determining credit worthiness would help those with little or no credit build their credit scores based on a more comprehensive picture of their payment history.
“As new technology emerges and advances in innovation continue to change American lives, our current system for how credit scores are calculated has not kept up with our evolving technology. Many Arkansans are unfairly denied opportunities for affordable credit because they do not have a conventional payment history,” Hill, vice chair of the House Financial Services Committee and Chairman of the Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion, said.
The bill is cosponsored by Reps. Tom Emmer (R-MN), David Schweikert (R-AZ), Young Kim (R-CA), Michelle Steel (R-CA), Byron Donalds (R-FL), and Maria Elvira Salazar (R-FL).
“My bill, the Credit Access and Inclusion Act, would bring fairness to credit access by allowing for important additional data, such as utility and phone payments, to be used in determining credit worthiness. It is past time for us to open the door for millions of Americans to be welcomed into a 21st century lending economy that supports economic growth and empowers consumers,” Hill added.
Companion legislation was introduced in the Senate by Sens. Tim Scott (R-SC) and Joe Manchin (D-WV).