April 8, 2020
Authored by: Douglas Thompson
The CFPB issued guidance and consumer information tools last week covering components of the Coronavirus Aid, Relief and Economic Security (CARES) Act. In this rapidly environment, financial services companies might do well to check the CFPB blog frequently to keep abreast of new developments and to be aware of specific information and tools consumers may reference in difficult hardship conversations.
Credit Reporting Policy Statement: On April 1, the CFPB issued a Policy Statement regarding the CARES Act credit reporting requirements lenders and credit furnishers and reporting agencies must follow under the fair Credit Reporting Act and Regulation V.
The Statement recognizes the importance of accurate credit reporting and information to the consumer financial services market system. In a press release Director Kraninger said: “During this time of uncertainty, we are providing clarity to ensure the consumer reporting industry can continue to function. 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.”
While highlighting the adverse impact of the COVID-19 pandemic on consumers, the Policy Statement recognizes the operations and staffing challenges lenders, servicers and reporting agencies are having as well. “The Bureau intends to consider the circumstances that entities face as a result of the COVID-19 pandemic and entities’ good faith efforts to comply with their statutory and regulatory obligations as soon as possible. The Bureau believes that this flexibility will help furnishers and consumer reporting agencies to manage the challenges the current crisis poses.”