Equifax Inc. released a statement after delivering a letter to the U.S. Senate Committee on Banking, Housing, and Urban Affairs in conjunction with the National Consumer Telecom & Utilities Exchange (NCTUE) which outlines their own alternative to SB1613, the Credit Access and Inclusion Act.
SB1613, introduced by Senators Mark Kirk (R-IL) and Joe Manchin (D-WV), would permit telecommunications and utility companies to submit consumer payment information to multiple credit reporting agencies.
Atlanta-based Equifax says the bill is unnecessary, citing an already existing data exchange, NCTUE, which is compliant with the Fair Credit Reporting Act and houses both positive and negative telecommunications and utility payment data. NCTUE is a nationwide, member-owned and operated exchange, which is available to NCTUE's members to aid in their credit decisioning and risk management.
"Helping consumers build their credit is a top priority of Equifax, so we certainly agree with the intentions of the Credit Access and Inclusion Act," said Michael Gardner, senior vice president, Equifax. "However, there is already a solution - without government involvement - that addresses the needs of consumers who rely on positive payment information to boost their credit scores. We manage NCTUE, which has a proven track record of effectively serving all consumers, especially those with little or no traditional credit history. If the federal government steps in and tries to implement a one-size-fits-all solution, it may lead to adverse, unintended consequences that negatively impact the very people they're trying to help."
The full text of the letter is available here:
