LANSING, Mich. — Michigan Attorney General Dana Nessel announced Tuesday she has joined 21 other attorneys general to urge the Consumer Financial Protection Bureau to enforce the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and require credit reporting agencies to follow the Fair Credit Reporting Act during the COVID-19 crisis.
"The CFPB’s recent announcement that they would not enforce the law would leave consumers at the mercy of unresponsive credit agencies at a critical time," a news release said.
The letter, which was sent Monday, was written in response to an announcement by the CFPB stating: (1) the CFPB would not enforce an amendment to the FCRA that requires lenders to report as current any loans that are affected by a COVID-19-related accommodation; and (2) the CFPB would not take action against consumer reporting agencies that violate the FCRA’s 30-day deadline to investigate consumer disputes.
“At a time when scams are abundant and mistaken reporting can detrimentally affect consumers’ credit, the Consumer Financial Protection Bureau should be working toward even greater protections rather than relaxing them,” said Nessel. “By choosing to not enforce many of the requirements of the Fair Credit Reporting Act during the COVID-19 pandemic, the CFPB is opening the door to potential harm to consumers’ credit and buying power along with jeopardizing the nation’s economic rebound.”
The letter cites three main concerns:
First, the CFPB’s announcement it will not enforce the CARES Act’s requirements could discourage consumers from taking advantage of the accommodations lenders are required to offer under the CARES Act or those they are offering voluntarily, Nessel said.
Second, the CFPB’s announcement it will not require consumer reporting agencies to investigate consumer disputes within 30 days puts consumers at risk, according to the news release.
And third, Nessel said consumer reporting agencies must be vigilant about accurately reporting consumer credit, which can only be done by following the requirements established by the FCRA as amended by the CARES Act.
Nessel joins the attorneys general of California, Colorado, the District of Columbia, Hawaii, Illinois, Iowa, Main, Massachusetts, Minnesota, Nevada, New Jersey, New York, New Mexico, North Carolina, Oregon, Pennsylvania, Puerto Rico, Rhode Island, Vermont, Virginia, Washington and Wisconsin in sending this letter.
Want to see more local news ? Visit the FOX47News Website.
Stay in touch with us anytime, anywhere.
Download our free app for Appleand Android
and
Sign up for newsletters emailed to your inbox.
Select from these options: Breaking News, Severe Weather, School Closings, Daily Headlines and Daily Forecasts.
