Bills Boosting Credit Bureaus and Financial Institutions Would Harm People Already Struggling to Afford Housing, Healthcare, and Utilities 

April 16, 2026 — Press Release

NCLC’s Chi Chi Wu Testifies in Opposition to Legislation that Dramatically Reduces Accountability for Credit Bureaus

WASHINGTON — As Congress considers legislation to boost the credit reporting, background screening, and financial services industries, Chi Chi Wu, director of credit reporting and data advocacy at the National Consumer Law Center (NCLC), testified today before the House Committee on Financial Services Subcommittee on Financial Institutions on how four of those bills would harm everyday people already struggling in the affordability crisis. 

“These bills provide a potpourri of giveaways to Equifax, Experian, and TransUnion, the Big Three credit bureaus, the single most complained about industry in financial services. The Consumer Financial Protection Bureau (CFPB) received 5 million complaints concerning credit reporting in 2025 alone,” said Wu. “People are struggling to afford everyday expenses, and Congress should be helping address credit reporting problems, not caving to the industry’s wish list to shield them from liability and prevent people from complaining about them in the first place.”

Incorrect information on a credit report, whether caused by errors or identity theft, can be devastating, costing families thousands of dollars in higher interest rates or denying access to loans altogether. It can prevent people from becoming homeowners, buying cars, or opening small businesses. It can also cost people a job opportunity, insurance, or an apartment rental. 

“Credit bureaus, employment background check agencies, tenant screeners, big banks, and debt collectors inflict real and serious harm on people when they report inaccurate information,” Wu said.

For example, Wu shared the story of a veteran who couldn’t close on the purchase of a new home because Equifax confused his name with other similarly named people, reported negative information, and failed to fix the mistakes. The man had already sold his previous home, and couldn’t find an apartment that would accommodate his pets. Unable to board all his dogs in a kennel, he ultimately had to put two dogs to sleep. 

Wu detailed opposition to four bills discussed at this hearing:

• H.R. 5775, the FCRA Liability Harmonization Act, would dramatically reduce accountability for credit bureaus and other companies, including when they wrongfully label innocent consumers as bad borrowers or criminals. The bill eliminates punitive damages under the Fair Credit Reporting Act (FCRA), no matter how egregious the violation.
• H.R. 5402, the Credit Access and Inclusion Act, is touted as helping consumers build credit by including rent and utility payment history, but in reality it overrides state and other federal laws that give consumers control over their personal information and harms consumers struggling to afford high utility bills or obtain affordable rental housing.
• H.R. 8141, the Fair Credit Reporting Reseller Accuracy Act, purports to impose new accuracy standards on resellers, but it instead gives these companies a free pass from liability. Resellers would be off the hook for errors if they conveyed information unaltered from another company, even if the inaccuracy was obvious.
• H.R. 7588, the Eliminating Fraud in the CFPB’s Complaint Database Act, would deliberately sabotage and undermine the CFPB’s ability to help consumers through its consumer response unit. It reduces the transparency of the CFPB’s complaint database by removing complaint narratives even when the consumer wants to share them, hinders consumers’ ability to seek third party assistance in filing complaints by requiring submission of sensitive ID documents, requires consumers to first contact the company and to wait 60 days before they can file a complaint, and allows companies unbridled discretion to reject complaints.

“Congress must adopt reforms to rein in abusive credit bureaus and authorize the creation of a public credit registry, so that consumers have an alternative to the oligopoly of the Big Three credit bureaus,” said Wu. 

Related Resources

• Issue Brief: Full File Utility Credit Reporting: Potential Harms to Low-Income Consumers, Mar. 23, 2026
• Press Release: Consumer Financial Protection Bureau Moves to Protect Credit Reporting Companies from Consumers’ Complaints, Jan. 30, 2026