HR5402-119

What This Bill Does

The bill allows persons and the HUD Secretary to furnish rent-payment and utility or telecommunications payment performance to consumer reporting agencies, notwithstanding other law and subject to specified limits. Covered rent includes HUD-subsidized housing. Utility usage information may be reported only insofar as it relates to payment or service terms such as deposits, discounts, interruption or termination. Reporting is permitted, not universally required.

Who Benefits and How

Consumers with favorable rent or utility histories could build stronger credit records, and lenders may gain additional payment data. Housing providers, utilities and telecommunications providers gain express reporting authority. Energy utility customers who are meeting an agreed payment plan may not have the covered outstanding balance reported as late, with compliance determined by the utility. This includes deferred-payment, arrearage-management and debt-forgiveness programs.

Who Bears the Burden and How

Consumers may also receive negative credit consequences from reported payment histories. The reported text deletes the introduced right to opt out through a written request. Furnishers must follow the new information limits and energy payment-plan protection, but violations of the new subsection are placed within the existing exclusion from the Act's specified private civil-liability provisions. The Comptroller General must report to Congress within two years on consumer impacts and cash-flow reporting effects on scores; no particular score increase is guaranteed.

Key Provisions

• Authorizes credit reporting of dwelling lease, utility and telecommunications payment performance.
• Limits reportable utility usage data to payment and service terms.
• Protects energy customers meeting an agreed payment plan against reporting the covered balance as late.
• Requires a two-year GAO report and modifies liability coverage while omitting the earlier consumer opt-out.