CFPB CLARIFIES CREDIT REPORTING PROCEDURES IN LIGHT OF CORONAVIRUS
T
he Consumer Federal Protection Bureau in light of the Coronavirus has come out warn lenders against reporting delinquent payments to credit bureaus for the consumers who have sought mortgage relief. The Agency has provided several ways and recommendations in new guidance on the credit reporting process in light of the COVID-19 pandemic. Adding 15 days of investigation, lenders now have 45 days to investigate credit disputes.
In a policy statement, the Agency has said that it supports the lenders’ “voluntary efforts” to provide payment relief to customers. However, the CFPB came out clearly to say that for any company providing information to credit reporting agencies that is accurate and reflects payment relief measures, it will not take any enforcement actions or cite in examination against the company. “During this time of uncertainty, we are providing clarity to ensure the consumer 90 l
reporting industry can continue to function,” CFPB Director Kathy Kraninger said in a press release. “Consumers rely on their credit report to purchase a new car, their new home, or to finance their college education. An effective consumer reporting system is critical in promoting fair and efficient access to credit in the consumer financial services market.” In late March, the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) which marked the THE POWER IS NOW MAGAZINE | APRIL 2020
