Tag: Name Changes

Bill to Amend FCRA and Address Issues With Name Changes Is Introduced to Congress November 29, 2022 A newly proposed bill introduced before the US Congress seeks to change the federal Fair Credit Reporting Act (FCRA). The bill aims to require national consumer reporting agencies (CRAs) to use a consumer's current legal name. This change would prevent CRAs from including information using an individual's previous name in consumer reports upon the consumer's request. The "Credit Reporting Accuracy After a Legal Name Change Act of 2022" bill appeared before the US House of Representatives in July 2022. Under the bill, Section 605(a) of the FCRA would amend to read, "With respect to a consumer reporting agency described in Section 603(p), any prior name of the consumer about whom the report relates, other than the consumer's current legal name, after receiving a request from the consumer to use only the consumer's current legal name on all consumer reports." The FCRA is the federal law governing the consumer reporting industry. This law ensures that CRAs apply reasonable practices to protect consumers' privacy. It also ensures accuracy and fairness in the information CRAs report. According to the text of this law, these changes would address issues that many transgender and gender non-conforming individuals have faced after a legal name change. This issue is due to the practice of including consumers' prior and current names on consumer reports. This practice can lead to a "split credit report" where both names get reported. When this occurs, some companies interpret it as an indication of fraud, which can cause a drop in credit scores. According to the act, this may affect 100 or more points. This drastic effect can make it difficult for these consumers to acquire employment, loans for homes or automobiles, or credit cards. The act further states that these consumers can face other adverse effects when their former names appear on the reports, many of which affect aspects of consumers' lives. For example, having their former names included in the report could expose consumers to unlawful discrimination based on gender identity. This effect could happen when potential creditors, employers, landlords, and others receive the offending report. If passed into law, this bill would resolve this issue by preventing CRAs from including a consumer's former name upon a formal request by the consumer. This change will ensure that information is only presented under the consumer's current name and remove potential barriers to credit, housing, and employment. Keep your business up to date on new laws and regulations with Pre-employ’s free news resources. Contact a sales rep today. Source

Tag: Name Changes

Bill to Amend FCRA and Address Issues With Name Changes Is Introduced to Congress

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