WASHINGTON -- Lender representatives, including the American Bankers Association, have told Senate Banking Committee members they oppose the Fair Credit Reporting Act amendments that are scheduled for a committee vote Thursday.
The lending industry has generally opposed the House version of the bill, which is intended to make it easier for consumers to find and correct errors in their credit reports.
However, they had been negotiating with Sen. Richard H. Bryan, D-Nev., in an effort to obtain legislation that most credit providers could accept. Sen. Bryan sponsored the original Senate measure, and prepared a new "print," or draft, for the committee's deliberations on Thursday.
Draft Called Unworkable
"We regret having to tell you that the committee print we received last Thursday from the committee staff is unworkable, and we must strongly opposite it," the groups said in a letter to Sen. Bryan.
"The bill in its current form is so negative we have to oppose it very strongly," said Edward L. Yingling, chief lobbyist for the ABA. "We are very skeptical that it could be fixed."
Joining the letter was the American Financial Services Council, Visa, MasterCard, and Household International Inc.
Lenders are particularly concerned about the liability provisions of the bill. Under both the House and Senate versions, lenders who provide incorrect information to a credit bureau could be sued by individuals under the private right of action the legislation would create.
Limit on State Powers Sought
The credit providers are also seeking an amendment that would limit the right of states to enforce their own credit reporting laws, as well as a provision that would permit lenders to verify income and other information about consumers who accept preapproved credit offers.
Jeffrey Tassie, a lobbyist for the American Financial Services Association, said, "Everything in the bill is interrelated."
The liability provisions could be made workable if state laws are preempted so that states are unable to limit the amount of time financial institutions have to investigate and correct errors reported by consumers.
The lenders want 30 business days to investigate disputed information.
Bankers and other credit providers have argued all along that the legislation is unnecessary.
"However, we feel we have made a good-faith effort to make S 783 into workable legislation," the lender groups said in their letter.
The bill is expected to win approval from the Senate Banking Committee.
