Chamber Pushes Congress to Renew Credit Rules

WASHINGTON, D.C. – The United States Chamber of Commerce urged lawmakers to reauthorize the Fair Credit Reporting Act in testimony before a House subcommittee today, saying the Act protects consumer buying power, gives business greater financing as well as borrowing options, and supports the consumer-driven economy.

"If it is more difficult and expensive to obtain critical financing, many small business owners may decide that the costs are too great," said Michael Uffner, President and CEO of AutoTeam Delaware and U.S. Chamber member. "Small businesses and consumers have been the drivers in this weakened economy — don't shut them down, now that the economy is just getting its legs back."

The Fair Credit Reporting Act created a uniform system of rules and obligations for reporting on the credit activity and history of U.S. consumers. However, without action to reauthorize this legislation, states will be free to create a patchwork of different rules and requirements.

"Such a patchwork would wreak 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," said Uffner. "As any marketing student can tell you, if you increase the burden on the customer, you might soon call them a former customer."

The National Chamber Foundation — the public policy arm of the U.S. Chamber — has commissioned an independent economic study of the Fair Credit Reporting Act's impact on consumers and businesses. Preliminary results from the study, which will be published later this year, show the national credit system lowers business costs and protects consumer access to credit.

Attempts to amend the credit reporting system with greater privacy protections for consumers would have the unintended consequence of raising rates for those seeking credit and would restrict businesses' ability to care for customers across affiliated operations, according to the Chamber.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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