Today
the House committee on Business Affairs and Labor voted down HB 1072.
The Bill, primarily sponsored by Representative Kelley Daniel from
Jefferson County, would have required consumer reporting agencies or
home mortgage lenders to disclose to consumers their overall credit
score, together with the method by which the credit score was created,
free of charge. It would have also required that favorable information
such as an increase in credit limit be updated and included in
consumer's credit reports.
"Consumers
have a right to know what their credit scores are and how they are
generated," stated CoPIRG Citizen Lobby's Consumer Advocate, Emily
Hoopes. "Having a secret magic number determine a consumers
credit-worthiness is not fair and leaves consumers in a vulnerable
position when applying for credit," continued Hoopes.
Credit
scores are used to determine the credit worthiness of consumers for
mortgages, credit card, and other debt. Numerical credit scores have in
fact largely replaced narrative credit reports for credit-decision
making. Although credit scores are derived almost entirely from credit
reports, credit scores have not been made available to consumers. The
company that makes the bulk of them, Fair Isaacs, prohibited its main
customers, the 3 major credit bureaus, from showing them to consumers.
In response to threats of federal legislation requiring credit score
disclosure, Fair Isaacs, the compnay which has for years blocked access
to credit scores has entered into an agreement with Experian to sell
credit scores to consumers.
"Limited
sale of credit scores is not good enough. Consumers need to be
completely informed when it comes to their personal credit
information," stated Hoopes, CoPIRG Citizen Lobby's consumer advocate.
Colorado
has the strongest legislation in the country on credit reporting to
consumers. Colorado law recognizes that consumers have a right to look
at their credit reports for free so that they can audit it for errors,
and find out who has been looking at it.
"Today
Colorado missed the chance to strengthen its credit reporting laws and
take a strong stand for consumer rights in credit reporting," said
Hoopes.
