Clay of Missouri Part B Amendment No. 4

Comprehensive Credit Reporting Enhancement, Disclosure, Innovation, and Transparency Act of 2020 or the Comprehensive CREDIT Act of 2020 This bill provides for additional consumer credit protections, sets forth requirements for credit reporting agencies, and prohibits the inclusion of specified information on credit reports. TITLE I—IMPROVEMENTS TO THE DISPUTE PROCESS The dispute process for consumers challenging information contained on their credit report is revised for challenges (1) through the credit reporting agency, and (2) through the furnisher of credit information. Credit reporting agencies must disclose to consumers how to dispute this information. If a credit report is revised as a result of a dispute, the credit reporting agency must provide the consumer a free copy of the revised report and credit score. Furnishers of credit information must maintain all records to substantiate the credit information provides to credit reporting agencies. Consumers must be notified when a furnisher provides specific negative credit information within five business days of it being reported to a credit reporting agency. The bill also establishes an appeals process for disputed credit information and sets forth procedures for the credit reporting agencies and furnishers of this information. Credit reporting agencies must identify disputed information on a credit report and ensure accuracy and completeness in credit reports. The bill also establishes the right for courts to award injunctive relief to require compliance with consumer credit laws. TITLE II—FREE CREDIT SCORES FOR CONSUMERS The bill requires credit reporting agencies to provide free credit scores to consumers along with their free annual credit reports. The bill also provides for • additional free credit scores and credit reports when a consumer is disputing information contained on their credit report or has had previously removed information reinserted into their report, and • automatic free credit scores and credit reports to consumers who have obtained a fraud alert or security freeze. Credit reporting agencies must provide consumers with additional information regarding the calculation of their credit score, including factors that adversely effected the score, and specific actions a consumer may take to improve the score. The bill establishes educational credit scores to be used by a consumer in understanding how a lender or creditor may use the information contained in a consumer's credit report if a current credit score is not available. Private education lenders, motor vehicle lenders, indirect auto lenders, and residential mortgage lenders must give consumers free copies of consumer reports or credit scores used for making underwriting decisions before consumers sign the respective loan agreements. TITLE III—STUDENT BORROWER CREDIT IMPROVEMENT ACT The bill prohibits a credit reporting agency from furnishing a credit report containing any adverse item of information relating to a delinquent or defaulted private education loan of a borrower who has a specified demonstrated history of loan repayment. TITLE IV—CREDIT RESTORATION FOR VICTIMS OF PREDATORY ACTIVITIES AND UNFAIR CONSUMER REPORTING PRACTICES The bill revises the information included on a credit report by • requiring removal of adverse information that resulted from fraudulent lending activity regarding private education loans and residential mortgage loans, • expediting the removal of debt that is no longer owed, • prohibiting the inclusion of an arrest that did not result in conviction, • in general reducing the time period adverse information stays on a credit report from seven years to four years, and • limiting the inclusion of certain medical debt. TITLE V—CLARITY IN CREDIT SCORE FORMATION The Consumer Financial Protection Bureau (CFPB) must regulate credit score models by establishing standards for validating the accuracy and predictive value of thes…