Lawmakers Urge Use Of Alternative CreditScoring
WASHINGTON - (05/16/05) -- Several House members called onlenders last week to consider expanding the use of alternate formsof credit records for those loan applicants without formal credithistory. Members of a House Financial Services subcommittee agreedthat millions of credit-worthy Americans without formal creditrecords could benefit from the use of information as rental andbill payment to help lenders assess their creditworthiness, butthey stopped short of endorsing a legislative fix. Lawmakers fromboth parties, as well as representatives from credit bureaus,lenders and consumer advocates all agreed that both businesses andconsumers would benefit from a standardized evaluation process foralternative credit information. "The Congress is showing aninterest in a subject matter that may affect 35 to 50 millionpeople who may not have a full credit reporting history," said Rep.Michael Castle, R-Del.