Reporting rent and utility payments to credit bureaus to boost credit access.
This Act allows utility, telecommunication firms, and housing providers (including HUD) to report consumer payment performance for rent and utility contracts to credit reporting agencies. This change enables individuals without traditional credit histories to build creditworthiness through timely payments for essential services. Crucially, energy utility firms are prohibited from reporting late payments if the consumer is adhering to an agreed-upon payment plan for outstanding balances.
Key points
Credit Building: Timely payments for residential lease agreements and utility/telecommunication services can now be reported to credit bureaus, helping consumers establish or improve their credit history.
Protection for Consumers: Energy utility firms cannot report a consumer's outstanding balance as late if the consumer is meeting the obligations of an established payment plan (like a deferred payment agreement).
Data Scope Limitation: Only information related to payment performance for utility services can be reported, not data concerning the consumer's actual usage of the service.
Expired
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