FCRA Sponsor Questions Senate Provision

Rep. Spencer Bachus, R-Ala., has voiced reservations about a provision in the Senate Fair Credit Reporting Act bill that would require lenders to provide adverse-action notices to consumers if they are not getting the best interest rate because of their credit score.Rep. Bachus, the main sponsor of the House FCRA bill, questioned in an interview with MortgageWire whether the notice requirement could be implemented in a practical way, or would become "one of these things that just generates lawsuits because of technical violations." The House has already passed a bill to extend and enhance the FCRA, and the Senate is expected to pass its FCRA bill during the week of Nov. 3. Rep. Bachus pointed out that consumers will have access to their credit reports and credit scores under the House bill. "They will know how good their credit is, and they can shop around for the best available rate," he said. Rep. Bachus chairs the House Financial Services subcommittee on financial institutions.