Free Credit Scores for Consumers Act of 2024

Finance and Financial Sector

house

senate

president

Introduced on April 29, 2024 by Joyce Beatty

Legislation Details

Establishes requirements related to credit scores and educational credit scores.
Finds that consumers can be charged for their credit score even though they can get their credit report for free annually.
Notes that credit scores available to consumers may not be the same as those used by lenders.
Highlights consumer confusion about credit scores and the need for better educational tools.
Defines terms such as “credit score,” “educational credit score,” “key factors,” and “credit scoring model.”
Requires consumer reporting agencies (CRAs) to provide more explanatory information about how scores are calculated, including key factors that positively and negatively affect scores.
Mandates CRAs to disclose prominently the differences between and limitations of credit scores and educational credit scores before a consumer obtains such scores.
Provides consumers with free credit score disclosures with their free annual consumer reports upon request and creates instances when consumers automatically receive free consumer reports and credit scores.
Requires private educational lenders, motor vehicle lenders, or indirect auto lenders, and residential mortgage lenders to provide consumers with free copies of any consumer reports and credit scores they used for underwriting before consumers sign loan agreements.
Directs the Bureau of Consumer Financial Protection to issue final rules to implement the amendments made by the Act within two years of its enactment.

Last updated 8/8/2024