H.R. 5402: Credit Access and Inclusion Act of 2025

The Credit Access and Inclusion Act of 2025 aims to modify the Fair Credit Reporting Act by allowing additional types of payment information to be reported to consumer reporting agencies, potentially affecting consumer credit histories and scores.

Key Provisions

The bill introduces several main changes:

Full-File Reporting

• Definition of Utility Firms: The bill clarifies what constitutes an energy utility firm and a utility or telecommunication firm, defining them as entities that provide essential services such as gas, electricity, water, or telecommunications to the public.
• Reporting of Payment Information: The legislation permits the reporting of consumers' payment information regarding lease agreements and utility or telecommunications services to consumer reporting agencies. This includes:
  • Payments under lease agreements for housing.
  • Payments for utility services and telecommunications contracts.

Limitations and Conditions

• Usage Information: Information reported can only relate to consumer payment performance and must not include usage data that is not directly tied to payments.
• Restrictions on Late Reporting: Energy utility firms cannot classify a consumer's outstanding balance as late if the consumer is part of a payment plan and is meeting the terms of that plan.

Consumer Rights

Consumers have the right to opt-out of having their utility and lease payment information furnished to consumer reporting agencies by providing a written request to the reporting entity.

Liability Limitations

The bill also modifies existing liability provisions within the Fair Credit Reporting Act to clarify that reporting under the new provisions will not lead to legal action against the reporter if done in compliance with the new regulations.

Study and Reporting Requirements

The bill mandates that the Comptroller General of the United States conduct a study and report back to Congress within two years after the enactment. This report will assess:

• The impact of the changes made by the bill on consumers.
• The effect of reporting cash flow data on consumer credit scores.

Relevant Companies

None found.