Resources Archive

Consumer Concerns: Information for Advocates Representing Older Adults

December 17, 2014

Advice for Older Consumers About Credit Cards Credit card debt can cause tremendous financial problems for older adults. Credit card problems are a leading cause of consumer bankruptcy filings. Contrary to popular myth, huge credit card bills are not mostly due to irresponsible overspending. Many consumers resort to credit cards to meet pressing financial needs…

Testimony of Chi Chi Wu Before U.S. House Regarding "Use of Credit Information Beyond Lending: Issues and Reform Proposals"

May 12, 2010

We oppose the unfettered use of credit histories and support H.R. 3149, for the following reasons: Credit checks in hiring create a fundamental “Catch-22” for job applicants. The use of credit in hiring discriminates against African American and Latino job applicants. Credit history does not predict job performance. Credit reports suffer from unacceptable rates of…

Testimony of Chi Chi Wu Before U.S. House Regarding “Examining the Uses of Consumer Credit Data

September 13, 2012

This testimony examines two very different approaches to change the credit reporting system. One approach — that advanced by H.R. 2086 as well as its Senate version S. 2149 — is to removed paid or settled medical debt under $2,500 from credit reports. This approach will tremendously benefit consumers, and indeed is probably the simplest…

Testimony of Chi Chi Wu Before U.S. Senate Banking Regarding "Making Sense of Consumer Credit Reports"

December 19, 2012

For over a decade, consumer advocates have complained of a credit reporting system plagued with preventable errors, and a broken dispute system that utterly fails to conform to requirements of the Fair Credit Reporting Act (FCRA). These complaints have been confirmed by numerous courts, journalists, and now a report from the Consumer Financial Protection Bureau…

Chi Chi Wu's Testimony Regarding "An Overview of the Credit Reporting System"

September 10, 2014

Credit reports play a critical role in the economic health and well-being of consumers and their families. A good credit history (and its corollary, a good credit score) enables consumers to obtain credit, and to have that credit be fairly priced. Credit reports are also used by other important decisionmakers, such as insurers, landlords, utility…

Testimony of Chi Chi Wu to U.S. House Financial Services: “Who’s Keeping Score? Holding Credit Bureaus Accountable and Repairing a Broken System

February 26, 2019

NCLC has testified many times before Congress, including before this Committee, on the need for reform of the credit reporting system to address issues such as: unacceptable error rates and the myriad types of systemic inaccuracies in credit reports; – the travesty of the automated dispute system used by the credit bureaus; the absurdity that…

Automated Injustice: How a Mechanized Dispute System Frustrates Consumers Seeking to Fix Errors in Their Credit Reports

January 14, 2009

Inaccuracies and errors plague the credit reporting systems. Estimates of serious errors range from 3% to 25%. Even using a low-end estimate, which is from the credit reporting industry and included only a narrow subset of problems, 6 million Americans face serious errors in their reports that could result in a denial of credit.

Solving the Credit Conundrum: Helping Consumers’ Credit Records Impaired by the Foreclosure Crisis and Great Recession

December 11, 2013

The foreclosure crisis of the late 2000s left an enormous trail of economic destruction in its wake. Most Americans are familiar with the obvious damage — the crisis cost nearly $200 billion in lost wealth, resulted in over 4.5 million Americans losing their homes,2 and triggered the worst recession since the Great Depression. One long-term…

Letter to FHFA on Fannie Mae and Freddie Mac Policies Regarding Disputed Items on Credit Reports

November 14, 2014

The undersigned consumer, civil rights and advocacy groups write to the regulator for Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) urging it to address a serious, unfair, and potentially unlawful practice that is caused by the policies of Fannie Mae and Freddie Mac: the denial of mortgages if…

Letter Urges FHFA to Insist that Fannie Mae and Freddie Mac Change its Policies that Require the use of FICO 04

November 14, 2014

The undersigned consumer, civil rights and advocacy groups write to you today because over 38 million consumers are potentially being treated unfairly due to the failure of Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) to adopt updated credit score models that better predict credit worthiness for consumers with…

Letter Opposing H.R. 2359 (Loudermilk), Eliminating FCRA Punitive Damages and Capping Class Action Statutory Damages to $500,000

September 6, 2017

The legislation would restrict remedies for American consumers whose credit reports and background check reports were recklessly distorted and who suffered serious consequences as a result, including losing their ability to access credit such as a mortgage, a car loan, rental housing, or employment. Limiting damages in Fair Credit Reporting Act (FCRA) legal actions, as…

Letter supporting HR 3755, The Comprehensive Consumer Credit Reporting Reform Act of 2017 (Waters)

September 14, 2017

The undersigned consumer, civil rights, labor, and community organizations strongly urge you to support and co-sponsor the Comprehensive Consumer Credit Reporting Reform Act of 2017. Credit reports and credit scores play a critical role in the economic lives of Americans. They are the gatekeeper for affordable credit, insurance, rental housing, and sometimes unfortunately even a…

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