Senators Scott, Manchin reintroduce legislation to expand credit access for millions of Americans
Thursday, June 20, 2019
This week, Senators Tim Scott (R-SC) and Joe Manchin (D-WV) reintroduced the Credit Access and Inclusion Act to expand access to credit for over 26 million Americans.
"While we have so much to be thankful for within our booming economy, we still have much work to do to ensure that the over 26 million ‘credit invisible’ Americans are able to climb the economic ladder," said Senator Scott. "In South Carolina, 22 percent of adults are ‘credit invisible’ and in many instances, it’s not due to poor financial decisions but rather because they lack sufficient credit history. This bill aims to change that and provide avenues of opportunity for those who have been overlooked by the current system."
"Credit invisible" Americans typically do not have the history of traditional payments such as student loans, mortgages, and car loan payments, which effectively eliminates their ability to receive a credit score under the current system.
Senator Scott’s Credit Access and Inclusion Act is a key piece of bipartisan legislation that allows landlords, telecom companies, and utility providers to report on-time payment data to credit bureaus, which in turn allows for the data to be used when a consumer’s credit score is calculated.
"Credit scores are driving access and cost of credit for many consumers, said Dan Schline, president and CEO of the Carolinas Credit Union League. "S. 1829 takes steps toward painting a clearer picture of the credit worthiness of millions of consumers that currently have no or little credit history. We applaud Senator Scott and thank him for his leadership on this issue."
This legislation is also co-sponsored by U.S. Senators Doug Jones (D-AL), Tom Cotton (R-AR), Mike Rounds (R-SD), and Angus King (I-ME).