House Passes Bill to Include Utility, Telecom, Landlord Data in Consumer Credit Scores

Earlier this week, the U.S. House of Representatives passed legislation introduced by Reps. Keith Ellison (D-Minn.) and Robert Pittenger (R-N.C.) that would help consumers build credit histories by allowing utility and telecom companies, as well as landlords, to report on-time payment data to credit reporting agencies. The bill’s sponsors argue that this would help those with little to no credit build their credit scores based on a full picture of their payment history.

At the time of passage, the legislation had a bipartisan group of 30 cosponsors.

“Millions of Americans lack credit scores or have scores that are too low to gain access to affordable credit,” Rep. Ellison said in a press release when the legislation was introduced. “The problem disproportionately affects young people, African-Americans, Latinos, and immigrants, many of whom can’t establish a credit score without taking on debt. Congress should give companies permission to thicken credit reports with predictive alternative data, like payments on gas, water, electric, heating oil, cable TV, broadband, wireless cellphone bills, and rent payments.”

Rep. Pittenger added, “We want to give every American the ability to build a better life. This bipartisan legislation will help hardworking Americans build their credit score on their own merit, without federal funds or new bureaucracy. Many hardworking Americans have been shut out when it comes to access to affordable credit, and I am honored to help these families by supporting legislation which creates a level playing field and increases economic opportunity.”

According to the press release, nearly 100 million Americans would be able to establish a credit score or raise their existing score with the implementation of this legislation. It now heads to the Senate.