National Credit Standards

Background

On December 4, 2003, in a major legislative victory for the U.S. Chamber, President Bush signed legislation (H.R. 2622) that would extend, and make permanent, provisions of the Fair Credit Reporting Act (FCRA) set to expire at year's end. FCRA created a uniform system of rules and obligations for reporting on the credit activity and history of U.S. consumers.  A single, uniform federal standard for credit reporting underpins the nation’s consumer economy, providing quick, easy and affordable access to credit to millions of American families. 

The legislation signed by the president also provides consumers with significant identity theft protections, and provides consumers with the ability to obtain a free copies of their credit reports.  A national fraud alert system would quickly alert consumers to possible identity theft and fraud, a growing and serious national problem, and help them minimize financial loses. Last year, 9.9 million Americans were victims of identity fraud or theft, according to the Federal Trade Commission (FTC).

U.S. Chamber Position

Reauthorization of FCRA means the country has avoided what could have been a dangerous lapse in our credit standards.  Such a lapse could have created a patchwork of state systems, wreaking havoc on the nation’s credit system, making credit reports much less reliable, and increasing the cost and time and hassle required to obtain credit, therefore reducing credit availability. Renewal means small businesses will have the financing that has been the foundation to our economic growth.