There’s enough to worry about as countries and central banks fortify against financial shock. For consumers in the U.S., credit bureau updating will have flexibility because of actions taken by the CFPB. This affects updates to Equifax, Experian, and TransUnion.
Here is part of the CFPB announcement:
“The Bureau also will not expect the reporting of certain information related to credit card and prepaid accounts under the Truth in Lending Act, Regulation Z, and Regulation E.”
Bloomberg reports:
“Credit card issuers, mortgage lenders, and other credit types will have discretion.”
The Consumer Financial Protection Bureau is giving banks and other lenders a break on reporting mortgage and credit card data as they respond to the new coronavirus pandemic.
The CFPB’s move to suspend some essential data reporting is intended to help lenders focus on helping consumers who are seeking help modifying mortgages, and other existing loans, CFPB Director Kathleen Kraninger said in a statement.
“Reporting on credit and prepaid cards mandated by the Truth in Lending Act, and other regulations is also suspended for the time being.
The Credit Union National Association, a non-profit supporting the industry, claims part of the credit in its announcement to members. In a recent statement:
“CUNA President/CEO Jim Nussle discussed suggestions to help credit unions better serve their members during a call with CFPB Director Kathy Kraninger and followed up with a letter detailing credit union issues.
Beyond credit reporting, of course, is your FICO Score. FICO has been in existence since 1956, and the first FICO Score was introduced in 1989. With recessions in the U.S. recorded in 1960, 1973-1975, 1990-1992, 2001, 2008-2009, you can certainly expect the most accepted credit scoring function in the United States to handle the current situation effectively. FICO has a consumer blog here where consumers can comment and ask questions, plus a checklist for managing your score at this link.
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group
