Representatives heard testimony from 21 witnesses involved in numerous aspects of credit reporting. Witnesses included Howard Beales, Director of the Federal Trade Commission’s Bureau of Consumer Affairs, federal and state regulators, users and furnishers of credit information, and representatives of consumer groups and credit reporting agencies.
As the first witness, Director Beales set the tone of the hearing by highlighting the vital role of the consumer credit market in the U.S. economy. The other witnesses went on to discuss pivotal issues in the FCRA reauthorization debate, including privacy, credit scoring, the accuracy of credit reporting, and the value of federal preemption.
Supporters of reauthorization asserted that FCRA’s uniform standards would enhance consumer access to credit and lead to additional spending, ultimately benefiting the national economy. David Lizarraga, President and CEO of The East Los Angeles Community Union (TELACU), illustrated ways in which underprivileged groups have benefited from the FCRA. Greater access to credit has helped people to rebuild depressed neighborhoods and has given low-income people more opportunities to prosper.
In contrast, opponents contended that states would be able to pass more stringent consumer protections if FCRA preemption ended. Vermont Assistant Attorney General Julie Brill advocated the sunset of the statute as a means of giving power back to the states, who understand best how to deal with the credit issues facing their citizens.
While witnesses offered varying views on the merits of FCRA reauthorization, Representatives’ questions and discussion generally indicated an inclination toward reauthorization. Nonetheless, the Representatives present at the hearing were cautious to avoid taking an official stance, using the hearing as an opportunity for gathering information. Witnesses’ concerns surrounding identity theft and erroneous credit reporting will likely headline future House debates.