Transcripts For CSPAN3 Experian 20240705

Credit reporting agencies, equifax, trans union, and experience. On Consumer Credit reporting. You are watching live coverage here on cspan. Thank you for the Witnesses Today for joining us. Three Witnesses Today, plain and simple, determined the Financial Futures of every american. Equifax, experian, trans union. This countrys biggest credit unions, im sorry, biggest Credit Reporting agencies. As you know, we have talked tremendous power over peoples life. The information you collect and putting peoples Credit Reports determined, determines whether people can get a mortgage or buy a car, where Interest Rates they pay, what credit cards they can get at what rate, whether they will get insurance, what they pay for it, whether they will be able to rent an apartment, whether they will be accepted for a job. All of that, in some, sense is in your hands. These companies are not just keepers of consumer data. They essentially managed or mismanaged, its the case, maybe, americans financial reputations. When your reports matter this much with consequences this drastic, its important that you get it right. It is vitally these reports contained only information that is useful and fair and, above all, accurate. In 2017, when equifax experience the massive data breach, the American Public was frankly, shocked, to find out exactly how much Credit Reporting agencies are involved in their lives. No offense, they dont think about you a whole lot. The company compromised the personal information of more than 147 Million Consumers, including Social Security numbers. Millions of people were forced into a crash course, on how frustrating it can be to deal with Credit Reporting Companies when they make a mistake. They had to place a credits freeze. They had to request their Credit Report. They were told to constantly monitor this information for inaccuracies. People are busy enough with their children and their jobs and their lives. They shouldnt have to spend that kind of time, because some company theyve never heard of screwed up. But thats a breach affected millions of people at once and got a lot of attention. But that was far from the only case of costly mistakes by your companies. Today, Credit Reports are still riddled with errors. According to an ftc study, one and five consumers had errors and at least one of three Credit Reports. One in 20 had errors that affected the likelihood of receiving credit or affected the credits, they are credit right. More than 200 million americans are in experian, equifax, and transunion Credit Reporting system. That means potentially, 40 million customers have errors on their Credit Reports. In 2022 reports, Financial Protection Bureau fired at equifax, experian, and transunion brutally failed to adequately respond to consumers with evers and that reports. After this report, the creek Credit Reporting agencies instituted some reforms to better respond to consumer complaints about errors when theyre Credit Reports. Its an important, long overdue first step. But errors like mixed files, or the information of different consumers appears in the credit file, are still far too common. Mixed files are such a pervasive problem that in 2015, 30 attorney generals settled a lawsuit with three Credit Reporting agencies, understanding you are not ceos then, over this problem, among other reforms the Credit Reporting agencies were required to establish minimum standards for matching criteria and producing mixed files. Its much more than just mixed up files. Some people still very much alive are declared that. They had their identity stolen. The list goes on. Errors are introduced into the system by what are called furniture. Companies supplying information to the reporting agencies. Debt collectors are some of the worst offenders when it comes to supplying wrong information. Cfpb found even though they are that collectors supply just 13 of the accounts to Credit Reports, they are responsible for 40 of the disputes in Credit Reports, 30 , 40 . Americans can be doing it on the reports for deaths, some cases, they do not even know. Its not just errors that do not belong on Credit Reports. Medical debts in particular. Ive spoken to each of you about that. It has absolutely no place on critical reports in 2022. And just in this country, an estimated 43 million americans held 88 billion dollars of medical debt on their Credit Reports. Low income families, black and hispanic households, veterans, older americans, are hit particularly hard. But medical debt can happen to anyone. It doesnt matter if you do everything right. Anyone can get sick. And they want to get in a car accident. Nothing really to do with your ability to pay your bills or, at least, it shouldnt. Medical debt does not correlate with credit risk. It correlates with illness or injury. No one should have financial future destroyed because of an emergency or a sick family member. Its why im asking your companies to stop putting medical debt, period, on your reports. After increasing scrutiny and pressure a year ago, the three if you announced he would significantly change out medical collection that is reported. One of the major reforms announced the removal of all medical deaths of 500 or below on reports. This is a good step, thank you. But its also not enough. If you have 1000 medical debts, you are no less creditworthy than someone with 500. It stems from the same problem. Someone in your family or youve got sick or injured. Cfpb found the remaining medical debt on Credit Reports will disproportionately belong to consumers living in majority minority and lower income neighborhoods. Your Company Provide tenant screaming services, another way you have tremendous power over people lives. Another white your evers can have disastrous consequences. When tenant screening turns up erroneous eviction filings, people cant find a place to live. Because tenant screening reports arent as available as a regular Credit Reports, creditors may cycle through rejection after rejection without even knowing there is an error on their Credit Report. After pressing cfpb to address these errors, i was glad to see they and the ftc announced the request for information on how background screening like tenet screening reports effect renters ability to attain housing. Yesterday, the Committee Held a committee about the challenges americans face affording housing. It is a highly competitive Housing Market. Inaccurate that means renters lose out on a home, making things, of course, worse. Its hard enough for americans to get a foothold in the middle class. Lasting workers should have to attend with careless mistake some companies that have too much power over some of their most important aspects of their lives. It is vital the reports your Companies Issue be accurate, not include medical debt, period, and avarice be fewer and correctable. I dont think its a lot to ask senator scott. Thank you mister chairman, and thank, you for being with us this morning. Really an important topic, when we worked on for the last five years of my time in the senate. Making sure we have access to but best credit we can get based on someone being creditworthy. I think thats really important part. I say that because i look back on my own familys history, back to the 1920s and 30s for my grandfather was growing up in the jim crow south, where we had more to do with your relationships, not credit worthiness. When we move to a model that allows people to access credit based on their relationships, it can sometimes lead to discrimination. We have an objective standard that is applied to everyone fairly and consistently, the nation is a better place. Accessing credit, accessing the american dream, homeownership, its more realistic. Based on her creditworthiness. My story continues in the various direction my grandfathers did in 19. 85, i started my Small Business without any question, i went to the bank and i had a conversation with the banker about assets versus liability. At that point, my best asset was a 1990s, 240 s acts that had 250,000 miles on it. Not necessarily the definition of an asset. I try to use it to borrow some money. They rightly left me out of the bank, but i developed a relationship where we had an opportunity to look at my very like credit score. I didnt have much credit at all. So, that works against you when you are starting to start a new Small Business. You need the revolving line of credit. Banks are less likely to loan against no assets, the ability to come back and forth to the same institution. That is a challenge. The more i work with the bank to appreciate building that credit score, understanding the principles that are so important to american prosperity, i was able to achieve my goal of opening my first Allstate Insurance agency, with the help of a friend who put some money into the business, as well as a bank filing, the bank finally concluding i wasnt appropriate risk. That situation today manifests in different ways. That credit score now impacts your rates and your insurance business, having been in the business, insurance, you are auto insurance. Your home insurance. Not just your loans or, literally, theyre decided by your credit worthiness. Because if i, i think we have to do everything in our power to make sure that as we head towards a continue to make progress on risk based method, that takes the nature of subjective nature out of landing that relied only on relationships, reputation, or word of mouth, and in turn, created, in my opinion, a fairer, objective measure of credit worthiness, increasing access to credit and frankly, making it more inclusive as well. This is so important, because with hard work and responsible financial decisions, anyone can develop and improve they are credit score. And obtain access to credit in a manner that represents their financial opportunity. Increasing taxpayer backed risk in the Housing Market assist administrations economic policies pushes towards a recession, is anything other than equitable. At the same time, the cfpb has the audacity to announce its exploring new avenues of Regulatory Overreach on a whole numbers of different issues, raising from data privacy to late payment fees, despite the fact that the agency itself experienced a data breach. Exposing the information of more than 250,000 americans. And then hiding that breach for several weeks. Its amazing how tirelessly this administration works to put dollars on the sidelines instead of in the taxpayers pockets. I look forward to getting answers and holding the rector shopper responsible. At the end of the day, the data that lenders use becomes less secure, less reliable, and predictive. It will simply result in higher rates and fewer loans made to people at the margins of the credit box. People just like me. Another example of the biden administrations policy hurting the people who can afford the least. However, there is good news. American innovation, the free market competition, or creating new avenues towards prosperity. As technology develops and lenders are able to use new or alternative sources of data, to better predict the risk of default, credit invisible americans will increasingly be able to participate in our financial markets. And that is really good news. Common sense and technological innovation has the potential to bring an estimated 50 million americans with feign or no credit files into the Financial System, and is a goal i have been working on, as i said, beginning for years. Micro to access and inclusion acts, Building Access for veterans act, and finally, the credit score competition act, signed the law in 2018, are all designed to allow for the use of new, reliable, predictive data in our system. As we push forward with the use of technology and new sources of data, which are already showing promise at making our markets fair and accessible, we should also consider what guardrails may be needed to ensure responsible growth and Consumer Protection. I look forward to hearing from the Witnesses Today on this really important topic. And i look forward to asking you some questions as well. Thank, you senator scott. The three witnesses joining us today, mark Bankers Service eo of equifax since april 2015. From our 2016 to april 2018, he served as the board of directors at fico, im sorry. Chris cartwright has earned his presidency of transunion, since may 2019. He joined transunion august 2014. Welcome. Mr. Bryan cassin, service ceo of experian since july 2014. He was previously appointed to the port of cfo on april 2012. Thank you all for joining us and mr. Begor, please begin. Good morning. Chairman brown, Ranking Member scott, distinguished members of the committee, thank you for the opportunity to be here today. Im mark begor, the executive director of equifax. Since 2018, i flew the transformation of our company to build a new equifax and a culture that values and supports consumers, customers, and communities. I recognize the Important Role that equifax plays in the Financial Lives of consumers, and i take this responsibility very seriously. Our Companies Purpose is to help people live their financial best. And equifax its committed to putting consumers first and helping people access useful and affordable Financial Products and services, and responsible, sustainable ways. We know that every financial first, whether its a college loan, a credit card, or a mortgage to purchase i dont, can spur positive economic change. We constantly look for ways to bring greater financial opportunity to more people in more places. Over the past five years, weve invested it incremental more than 1. 5 billion dollars to rebuild our i. T. Infrastructure for the most advanced Cloud Technology capabilities available. This is one of the largest Cloud Investments ever undertaken in our industry. It is changing every facet of our infrastructure and our operations. Our new cloud capabilities are allowing us to enhance the accuracy of data and to more effectively leverage our alternative data to expand access to credit, while also delivering industry leading security. We know that one of the keys to responsibly expanding consumer access to credit and supporting a more inclusive a common enemy is leveraging information that is not traditionally included in the Credit Report. Were focused on Offering Innovative Solutions that can bring increased visibility to underserved consumers. For example, we recently became the first in our industry to provide a new mortgage Credit Report that combines utility and cell phone data with traditional credit data. The majority of American Adults have at least one utility or cell phone bill in their name, and using this Additional Data in a mortgage underwriting could raise the Credit Scores of as many as 2. 4 Million Consumers by an average of 30 points, moving them into a higher score bands, and potentially enabling them to either get approved or to receive more favorable mortgage Interest Rates. In addition to our efforts to expand access to credit, equifax is taking strong steps to be more consumer friendly at every touch. Weve invested over 75 million to improve the overall experience that consumers have with equifax. We are ensuring our written communications are in plain language. We have added tools like video clips to our website to help consumers navigate the dispute process. We have made it easier for consumers to both manage their disputes online, and tracked their disputes throughout the process. We are committed to correcting errors on Consumer Reports quickly and transparently, and we are working with our industry colleagues to limit errors from occurring in the first place. Another element of our focus on consumers is ensuring that we maintain the most accurate data possible. Even one single error on a consumers Credit Report is one ever too many. Its a personal priority for me that Consumers Trust their Credit Reports to contain accurate and complete data. To strengthen our Accuracy Program equifax, we are driving initiatives in three key areas. We are streamlining our dispute processes and rewriting our Consumer Communications to use more plain language. We are implementing automation, to identify errors and data before it goes on credit file. And were working more closely with our furnitures to communicate issues that can be found and correct them going forward. While im proud of our progress, there is more we can and will do. We are deeply committed to putting consumers first. That means ensuring that we are providing lenders with Accurate Information so that consumers cant get the credit they need. We continue to focus on our leadership and Data Security and to foster a culture war Data Security is central to our teams dna. We built one of the worlds most advanced and effective cybersecurity programs, and our Security Capabilities exceed all industry benchmarks. We believe transparency, communication, and collaboration delivers stronger security. We continue to actively engage with our customers, policy makers, and other organizations regarding the challenges and opportunities in cybersecurity on a daily basis. While we still have more work to do, im proud of our progress that weve made over the last five years. Our resolve to achieve our Company Purpose to help people live their financial best and put consumers first has never been stronger. Thank you again for the opportunity to share some of the key priorities of the new equifax, and for your dedication to your constituents and American Consumers. Thank you, mister begor. I appreciate you being here. Mr. Cartwright, you are recognized for five minutes. Chairman brown, Ranking Member scott, distinguished members of the committee, thank you for this invitation to appear. My name is chris cartwright, and i am president and ceo of transunion. Transunion is a global company, headquartered in chicago. It is one of three major Credit Reporting agencies in the United States. We have nearly 5000 employees and the u. S. , and over 12,000 worldwide. Transunions mission is to help people in society through information, to ensure fairness for consumers, and to assist businesses in identifying underserved communities and managing business risks. That Credit Reporting agencies are the backbone of the modern Consumer Credit economy. We play a key role in the efficient and stable functioning of the nations Financial System. We serve as clearinghouses and record keepers, and we help consumers gain access to credit quickly and efficiently. We do not make lending decisions. We provide information that helps consumers obtain credit. It helps lenders and underwriting and establishing credit terms. Our Credit Reports helped more than 254 Million Consumers per year. Obtain important Financial Products, allowing them to achieve their personal goals through Affordable Credit. The days consumers expect near instant access to credit. We helped make this possible by providing an efficient and reliable way for lenders to assess consumers willingness and ability to repay their loans. Ultimately, this system enhances quality of life and strengthens the american economy. We also play an Important Role for the London Community and for preserving financial stability. We help banks and Financial Institutions of all sizes more accurately manage risk and we have seen in the past several months, ensuring lending institutions have the data to understand and mitigate risk is critical to the Overall Health and resilience of the u. S. Banking sector. At the core of trans unions business is a commitment to data accuracy. Data accuracy is the fundamental underpinning of the entire Credit Reporting system. We must get it right. A strong and accurate reporting system benefits consumers, businesses, and the economy. Trans union has led the industry in building a system that helps consumers quickly address any adverse in their Credit Reports. And work directly with furnitures to expeditiously resolve any inaccurately reported items. Through our efforts, our turnaround time in addressing consumer disputes its now approximately nine days. Well below what is required by law. We understand the great responsibility we have in stewarding data that touches the lives of nearly every american. Financial inclusion is a key pillar of our company strategy. We are proud to be Industry Leaders and promoting expanded Credit Access through alternative data. Alternative data sources, such as rental anddata provides opportunities for people to build credit profiles quickly and accurately. We believe alternative data is really a story of economic fairness. If this information were reported at scale, it would substantially increase Credit Access for millions of americans. We often know the real impact Credit Reports have on consumers lives. We are committed to getting it right, every time. Since i became ceo of the company, transunion has undergone a transformation, focused on improving the consumer experience. Among other things, during this transformation, we have partnered with our peers at the outset of the pandemic to provide consumers with free weekly Credit Reports. We are continually investing in our operations to build a best in class dispute resolution infrastructure. To make sure our data is as accurate as possible and consumers experiences are seamless. We recently removed all paid medical debt from credit files. And, we made changes that will remove more than 70 of all unpaid medical collections from Credit Reports. Senators, we recognize that partnering with policymakers is essential. We appreciate the work of this committee, in particular, chairman brown and Ranking Member scott. For your leadership and helping to make the Credit Reporting system stronger. We want to continue to build on our successful history, and we will continue to work with congress and our regulators to provide consumers with the tools they need to realize economic opportunities. Thank you senators, and i look forward to answering your questions. Thank you very much, mister cartwright. Mr. Cassin, you are welcome. Committee chairman scott, members of the committee, i am brian cassin, ceo experian of. I appreciate the opportunity to discuss the important work that experian does for the consumers, lenders, and the u. S. Economy. Let me start by stating Credit Bureaus exist. How consumers benefit, and how our provides underlying stability to the entire Consumer Credit ecosystem. Credit bureaus accurately compile Consumer Payment histories reporting to us by individual creditors. It all that gets used as data to make sound underwriting decisions. Good luck decisions mean fewer defaults. The work defaults reduce the cost of credit, and increase the availability of consumer accredited in the economy. Because the Credit Bureau data does not include democratic factors such as race, color, religion, and gender, it also helps lenders make nonbiased landing decisions, and compliance with the equal credit opportunity act. Experience fully understands its obligations to ensure the information we hold on consumers is secured, to make Credit Reports accurate, and provide a method to correct data that is easy for consumers to access and use. Experience supports this committees goal of enhancing the accuracy of Credit Reports, improving consumers experience through the dispute resolution process, and making fair and Affordable Credit available to all communities. Experience has invested heavily in systems and processes to improve data accuracy, and we continually strive to reach 100 accuracy. We work with approximately 10,000 lenders and data contributors across the spectrum of consumer lending, including credit card, auto, mortgage retail and fintech. We have stringent requirements and monitoring programs in place to ensure that our furnishers are submitting Accurate Information to us. An important component of accuracy is the consumers right to review their own Credit Report and correct adverse. With millions of free reports and scores in the ecosystem monthly, consumers have easy and free access to their report information, including through annual Credit Report. Com, which provides free weekly reports. Consumers, experience as a free, online to speak portal. Including a mobile optimized website. Now, consumers can also easily reach us by telephone or mail mister chairman, Study Suggests that is many as 15 million American Adults are unable to access their and Affordable Credits. Either because they have very than credit files or because they are completely credit invisible. We also understand many consumers, particularly minorities, and lower income individuals, are often underrepresented in the Credit Reporting system. This is an area where experience has been at the forefront with the launch of experience boost in early 2019. Boost allows consumers, for the first time, to safely and easily opt in to having proven Payment Information like utility, cell phone rent, and video streaming services, including directly into their Credit Report, which can prove their credit score. In january, 2022, we launched experian go. The groundbreaking feature to help consumers who are credit invisible to establish a financial identity, with experience, so they can begin building a Credit Suisse tory. Since its launch, more than 12 Million Consumers have come to experience boost to prove their credit score. So, 130,000 consumers have used experian go to establish a financial identity. The results are notable. We estimate that consumers have been able to access billions of dollars in credit, who secluded credit cards, car loans, and home mortgages. Experience also providing free access to free credit monitoring, free Credit Scores, and Financial Education to more than 65 million u. S. Consumers. Mister chairman, im very proud of the work our employees to every day to help and empower consumers, we would like to continue to work with this committee to identify other ways that we can improve the system for consumers. Thank you for inviting me to testify. I look forward to answering your questions. Thank you, mister cassin. We will be questions with senator smith of minnesota. Great, thank you, mister chairman. Ranking member. And thanks to all of you for being with us today. I really appreciate it. Black, hispanic, and native American Consumers tend to have lower Credit Scores that theyre white and asian counterparts, and this isnt necessarily because they are less creditworthy. It is because they are more likely to be among the 45 million americans that fall outside the main system. Those that are considered, i think one of you use this term, credit invisible or an scoreable, because they dont have enough traditional Credit Information and their files to generate a conventional credit score. So, mr. Cartwright maybe, all direct this question to you. How can we use alternative data such as rental history or utilities or cell phone or internet payments to help address this inequity within the credit scoring system . Well, senator, first, thank you for the question. It is hugely important issue, and an opportunity for our industry to improve that manner in which we serve consumers and the American Financial system. I agree with the points that youve made. In my mind, this falls under the umbrella of alternative information that can be used to reliably establish the consumers ability and willingness to repay debt. There are tens of millions of consumers in the u. S. Who have then credit files or our credit invisible. We know that information such as rental payments, utility bills, telecommunications data, et cetera, provide strong signal in production of a consumers Financial Management behavior. And we would like to gain access to this information at scale and create a pathway for these traditionally underserved groups to access the mainstream Financial System. So, the barrier is getting access to the data . Yes, senator. That is correct. Each of the bureaus has a degree of access to this information today. However, there is no requirement that the current custodians of this information, furnish it to the Credit Reporting industry. If there werent regulation or legislation that required that, we would be able to get comprehensive access to this information, and accurately add that to the consumers credit file, and improve Financial Inclusion dramatically. Again, we have a history of such innovations in our industry. And we have seen that each time we expand the inclusion of accurate and truthful information, tens of millions of consumers can now engage in credit. So, medical debt has, medical debt has gone to collections affects one in five americans, a group that is again, disproportionately comprised of elderly folks, veterans, low income people, black and hispanic patients. So, i am grateful for the steps youve taken over the past year to minimize the impact of medical debt on this, this group of folks. However, as you acknowledge when you announced your most recent changes, medical debt is generally not taken on voluntarily, right . So, based on that patients to always have the ability to choose providers or to shop around for their care and the true cost of care might not be available or, it might not know what that is up front. So, mr. Begor, maybe ill direct this question to you. Taking off that into consideration, what value does medical debt really have in determining creditworthiness . Do you think that should be included at all . Senator, we agree with you the medical debt situation is very complex. Our hospital systems, the billing systems we have, the insurance systems are some of the most complex out there. You know thats the industry, the three Credit Bureaus made a proactive move to number one, exclude all that for a year, medical debt, to give consumers a chance to sort that out and second, to exclude medical debt below 500, which eliminated about 70 of the trade lines. So, we thought that was a proactive step going forward, then, we are doing more around ensuring that the medical debt that is contributed is accurate. Inside of the credit file. Okay. As i understand it. When you announced that medical debt under 500 would be exempt from Credit Reports, but you noted this applies to the initial reports balance. And depending on the care that folks receive and providers that take care of them, some, you cant end up with multiple bills that exceed 500. Is that . How would you address that . Same thing, senator. I think its something we can look further into. We agree with you the complexity of medical that is something that needs to be addressed, and we thought the moved from 500 was proactive. I think there is more we can do to look at the issue. I would encourage you to do that. Thank you. Thank you, mister chair. Thank you, senator smith. Senator scott is recognized. Thank you, mister chairman. Senator smith, i have something called the Credit Access and inclusion act that allows for more information to be added to the system voluntarily. And mr. Cassin has talked about it, mr. Cartwright has talked about it. I would love to have a conversation with you about the legislation. I do think that theres two ways for us to actually see more access to credit. One of them, i think, is flawed and likely will lead ultimately long term to less access, because you create less reliable scoring system. I think were seeing that, in part, from the fda director thompson, who is departing from risk based pricing on individual loan supported by the gses, creating reverse incentive structure that will penalize borrowers who have worked really hard to prove their credit or safe for the down payment. When you look at ways to water down the credit score, in order to create more access, i think ultimately, you destroy the very system that i talked about that i think needs to be objective. And needs to be based on your, the credit risk itself. There are ways for us to make sure that specifically, minority borrowers who are more often than not, renting a home, not owning a home, based on the fact that 41 of African Americans they own their homes. Ultimately, 59 do not. So, if you are not including the rent payment, if youre not including the other beyond credit card payments, the utility payments, the home, the phone bill, the mobile phone bills, there are other ways for us to make sure, and if we are doing those things, adding them in, we are creating a more fair yet objective system. And mr. Cassin, i know you talked about boost in your opening comments. My question to you is, how is it going . Number one. Number two, do you find the accuracy of the information that is being input is consistent with the same level of accuracy that allows you to still have a fairly objective system . Well, thank you, senator. Yes. Since we launched boost, in 2019, we have had over 12 Million Consumers add additional trade lines to their Credit Reports. And we do this through a fairly simple process. We gain access to their checking accounts, consumer permissions. So, the consumer ops in to do this. We look for these trade lines and we at them to the Credit Report. And, we immediately score them. What we found is that over half the consumers that have done this, have seen some fairly material increase in their Credit Scores. So, it has been hugely beneficial. It is, weve worked with the industry to ensure that it works and that the information is valid to be included. The scoring systems work. Weve worked on all the scoring companies, so, we believe this is a very effective way of actually helping people who have thin credit files. And ultimately, also for people who have no Credit History. So, very proactive step. We did take further steps, senator, more recently with the launch of product called experian go. Which is actually targeted a people who have no Credit History. So, they can establish with experian for the first time. And these kind of initiatives, we, think are incredibly helpful at addressing that Large Population of people who havelimited or no access to credit, senator. Anyone else want to comment on that topic . Senator, i agree with brian as well as your points around more data results and better decisions. And we have some large databases of nontraditional credit data, for example, we have a database of 220 million americans cell phone payment records and utility records. And weve recently taken that data and added it to our mortgage credit file. And that drives the predictability that consumers particularly those at the lower end of the credit space, thats have less trade lines, so if you are adding in someones cell phone bill that they pay every month, its a predictor they are going to pay their financial bills on time. And from that new product, we think as many as 2. 4 Million Consumers will see a 30 point lift in their credit score by adding those nontraditional Data Elements, and were going after rental payment data, as you suggest. Very complex to collect. As was already pointed out, we have a big priority around adding nontraditional data sources to expand access to credit. Im running out of time, so ill just say this. The use of objective standards is so critically important. And i say this move across the country that somehow, were going to make the lives, specifically minorities, better, by eliminating objective standards and everything. In education, in Credit Scores, and that, to, me is insulting as an african american, the only way for me to be competitive is for you to somehow eliminate the thresholds. Thats ridiculous. I cant think of anything more ridiculous than that. I would say this. On this topic, but last thing, theres nothing more ridiculous than that, but not on this topic. I also think you are spending a lot of time investing in financial literacy. As a path forward to helping people understand the cecily what. You will click on paper right become the most important single factor, in how you live your life. In the future. As relation to being creditworthy. Thank you. It will continue, senator thank you, senator scott. Thank you. I will take my five minutes now. Thank you for responses, senator smith. It was a start, but inadequate. I want to talk to you more about medical debt. I appreciate that your commitment to increasing access to credit overall. I appreciate the 500 dollar threshold that you are doing, that you are not putting in the reports up to 500. I appreciate the first year of not reporting, and i appreciate that if the medical debt is paid, its not on the Credit Report. I want to talk a little bit more about that. Cfpb just released a report that found, for consumers with over 500 in medical debt, or under 500 medical debt, removing medical to increase their Credit Scores by 32 points. Then, when medical collection was removed from Credit Reports, the total amount of available involving credit increased by over 1,000. My question, starting with you, mister begor, will you commit to removing medical debt above 500 from Credit Reports . Senator, i think we made a very productive move the 500 dollar decision that year, and we are focused on accuracy of medical. That is certainly something we will look at the future and collaborate with your office. You are not willing to commit right now . We would like to collaborate with your office on it, senator, and look at it closer. Okay, mr. Cartwright . Same question. Well, thank you for the question, sir. Thanks for acknowledging that the progress, the progress the industry has made in this difficult and sometimes controversial issue. Senator, i would agree that we should continue to analyze this issue and determine what is the best threshold for including medical debt within that credit record. I think we have to acknowledge that at some level, medical debt could become a burden for a consumer. To incur even more death. I think the best outcomes is when all the players in the Credit Reporting system, be it bureaus, the banks, consumers, and certainly, this committee, collaborates and analyze the information and let the data lead us to the best outcome. So, back to the question. To mr. Begor, you are not willing today at this hearing, to commit to no medical debt, taking on medical debt off over 500 . You are not willing to commit to that today. Senator, what im willing to commit to is to apply considerable resources working with this committee to analyze the data and help determine the appropriate balance, the strike, for the Financial System. Mr. Cassin, the same question to you. Thank you, senator. The same response, senator. I think weve taken very proactive steps. We agree is a really important issue. Its also a complex issue. I think we will commit to working very practically with your staff to see if we can make any further steps. It does involve a lot of stakeholders. I think it goes beyond just having a decision that three Credit Bureaus connect themselves. The decision, working with our staff, the best way to do that, i will reiterate is a better answer to the question. You all know that medical that, youve essentially said, that its not predictive. It has no place and youve sort of succeeded that, seated that has no place in Credit Reports. The three if you own vantagescore, as you know, 2022 vantagescore announced it will no longer include medical debt as part of its credit scoring model, because medical debt is, quote, not predictive of a consumers credit worthiness. That is why i am urging today and will continue to urge, as senator smith urged, that you take on medical debt off Credit Reports. So, let me do one other question, and i will turn it to senator brett and senator warren. Janet screening reports go beyond Credit Information. Cartwright, this question is specifically for you. They include the affection filings, criminal histories, just like Credit Reports, these tenant screening reports can have errors. That catches, renters cant see these reports, as you know. So, to get an apartment, you are forced to allow landlords to look at reports on you that you cannot even see yourself. Trans union is a larger of the three if you, you played the most central role in this transiting it is the large provider of tenants winning reports, showed a tenant have the ability to see a copy of their tenant screening reports actually see, not just provide, consent. When a landlord is using it to decide about renting to them . Mr. Curry . Senator, we are committed to making sure the tenets greeting data is accurate. The information we received from several sources you references generally authoritative and is generally accurate. We also investigated considerable sums in the algorithms in analytics that match this information to the correct consumer. When errors are identified in the system we are proactive, we report this information to the furniture of that information. We allow the record to be corrected. Senator, the screening information it plays an important intended to get a housing opportunity. The date is also important for Property Owners to expand that opportunity, and also to protect their tenant communities. We are committed to full and fair access and under federal law. We also take the obligation to ensure that the data is accurate as possible very seriously. You are not saying that every tenant should have the ability to see a copy of the tenant screening report . Senator, chairman brown, consumers are able to see the information that is reported against them. They are able to dispute it under the fc are a. Again, when errors are identified we reported back to the sources of that information i do agree with you that transparency in this process, just as in financial trade lines, its hugely important. Are you saying that they are good, with your answers, but are you saying that tenants, now, well see the reports . They will be able to know if theyre accurate . They will be able to get them cleaned up when they reply . When they are applying to ransomware . Sir ahead of time, you know what has happened here, mr. Cartwright. Tenants get turned down, they dont really know why. They get turned down a second place, they dont really know why. And landlord has seen a report, the tenant hasnt. How do we fix that . If you are not more directly, aggressively, proactively, get these reports in the tenets hands, the one that they underhand, second they may see areas that they can cleanup and then get an apartment that they werent able to get. Senator, it is certainly important that the data is accurate. We spend a huge amount of resources to make sure that it is. It is also important that it is transparent under the f cra. If a tenant, if it consumers turned out for credit or a tentative denied having opportunity they need to know the reason. Once they are giving that reason they have an opportunity but do they know the reason now . Do they know the reason when the potential landlord gets the Credit Report, see something that is disturbing to them, they dont rent to this potential renter . Is that something that you are going to fix . So these tenants the perspective tenants can see that information . I understand that you are working to make them accurate. I believe all through. View the meetings that we are trying to do a complex. World these tenants on a person by persons it going to be remedied . Senator, it is difficult for me to speak for all of the practices that are out there on the market. I do believe that landlords are responsible for communicating the reasons for deny access to housing to applicants. But they dont. You hope they do. You think they are responsible but they are not, in many cases, they do not tell the tenant. They just say, no. Correct . Again, it is difficult for me to speak comprehensively about the practices out there. What i can tell you is that we believe it should be a transparent process. We are, again, happy and willing to commit the resources to work with you to review the rules of the road. To refine regulations at appropriate i hope the best first step you can take is to support the provision in a bipartisan eviction crisis act to clarify the tenets should be able, in fact under law, to see their own tenets greening report whatever a landlord is using that report to decide about whether or not to rented them. We will come back to you, asking for your very public support for the eviction crisis act. Senator britt of alabama. Thank you, mister chairman. Good morning. Thank you to all three of you for appearing before this committee this morning. I want to speak on a subject that Ranking Member scott brought up about credit invisible individuals. Both the cfpb and your Research Teams indicate that there is about 26 to 28 million americans that are credit invisible. Actually, in alabama, this is personal to me. One fifth of alabamians according to the cfpb are either credit invisible or have a thin credit file. For lack of Credit History. Research indicates that this is predominantly in low and rural consumers. They are the ones fitting into this category. One of our bipartisan goals on this committee is to responsibly increase access to Financial Institutions and to credit. I want to ask each one of you, given that many of these individuals do not have traditional credit histories, what is your plan to help more americans no longer be credit invisible . Or to actually develop their Credit History . We can go down the line. Since we are short on time, if you could keep it as concise as possible of greatly appreciated. Thank you, senator. We are one hunted percent aligned with your goal im happy to come up with the hearing about expanding access to credit. It is a priority of equifax is. We have large databases that are alternative data outside of the credit file. For example, we have records on cell phone utility payments. 220 million americans. We have rolled out a new product, a new mortgage credit file that includes those Data Elements that will expand Credit Scores by including those more non traditional elements. Are you seeing that help more people . For sure. We are helping to bring more data in. Rental payment, for example. The 44 million americans that rent every month. That is very attractive data. Very predictive data that will improve the Credit Scores. Adding that data is a priority of ours. Thank you. Mr. Cartwright . Thank you again for the question, senator. I agree with you. It is a hugely important issue. In my opinion it is probably the single Biggest Issue that this committee could work on to expand Financial Inclusion to the mainstream system. One point i would like to highlight for the committee is that transunion, and the Credit Reporting industry at large, adopted what is called trended Credit Information over the past several years. The difference that trended Credit Information, we took a snapshot. A point in time review of our consumers Credit Information to calculate a score. Now we look back over history, as much as three years of data. That allows us to include consumers who may have fallen off the credit file. Another result, the industry can score tens of millions of consumers that we couldnt previously. And score with greater accuracy, which is important to bank safety and soundness. I agree with mr. Begor, that we need to invest in alternative data. We also in transunion have a considerable out of nontraditional Credit Information that we use in our scoring out rhythms. It expands access to the Financial System for American Consumers. Excellent. I hope you will continue to invest in that. We certainly will. Mr. Cassidy . Thank you, senator. This is a huge important issue. This has been something weve been incredibly proactive about. The first thing we did, sometime ago, was to make access to experian Credit Reports in scores free to any consumer. We have over 65 Million Consumers that access of products directly from experience. They can go in, anytime, to get access and to lots of products that give a lot of education around how reports and scores are calculated. How people can improve those. We come and have introduced some specific product that really go to the heart of this issue. The first is called experian boost, which i mentioned in response to senator scotts question. That is really a service that enables consumers, entirely free, entirely optional, to add those additional trade lines to the experience credit file so they can be its included in their credit assessment. Others said over 12 Million People have done that. Many of those, over 50 , have seen substantial increase in their credit corps as a result. We think that is a hugely positive development. The second thing we did was introduced our newest product called experian go. Which is actually aimed at those consumers and have no information in their quarterfinal whatsoever. They can add these trade lines and establish her financial identity for the first time. This is a hugely important step in trying to address this issue. Together, i think all of the actions that weve taken by making all of our products available to consumers for free by introducing these products which are specifically geared towards targeting this issue, i think we have been the most proactive i would agree that you have. I want to commend you for the work that youve done. I want to encourage all three of you to be intentional in this effort. We have to make sure that more americans have a better opportunity to build their credit file. Additionally, i want to double down on what Ranking Member scott said about financial literacy. It is critically important. If each of you would report to my office what you are doing within your community to help us promote that across the country, i would graciously appreciate that, as well. Thank you. Senator tester is recognized from his office. Perhaps. Do we know . [inaudible] i appreciate it very much. Many montanans have gone to my arduous on these muchneeded not because the Credit Reports of roads are suspended. Little face to face assistance from the cra, folks feel they are being held hostage by the cra. For all of you, how will you how consumers quickly lived freezes on their Credit Reports . I will go first, senator. In alphabetical order here. We agree with your point. It is super important to give consumers access to their Credit Report. As i mentioned, equifax has invested over the last number of years 75 million to improve that access. We are also expanding education on our website in order to have consumers better understand what credit gore is, what a Credit Report is. And how to improve your credit score. , before we go to the next one, further freezes specifically, are you doing anything to help consumers lift the freezes . We are, senator. We are making that process more streamlined. That equifax we have an online app, lock and alert, where a consumer can lock be credible and automatically unlock their credit file. That is a free product. It is definitely a priority of ours to be able to lift freeze when a consumer puts it on their. Okay. Next . Senator tester. Thank you for the question. I agree this process needs to be quick and seamless for consumers. Today there are two flavors of the process. A consumer can an act to credit freeze, which is enabled legislatively across various states. It also takes a bit more time to freeze and unfreeze ones credit through this process. Trans union has also invested and innovated an app and credit lock product where consumers can lock and unlock access to the credit instantaneously. That is what we are striving for. We are striving for very seamless consumer experience. Senator, at experian we make it available free to consumers to freeze and unfreeze their Credit Reports. We have actually just revamped that product. It is available through a mobile app. We believe it is very easy to do. It should be quite intuitive for consumers to do it there is assistance to consumers if theyre having any difficulty. There should be a really easy process for consumers to do now. And i want to talk about data breaches for a second. They occur, they occur and also to different arenas where folks get their identities stolen due to a data breach. For you, mr. Begor, can you give me an idea of what is being done to help folks who have had their identity stolen . Due to a breach . We have a process where a consumer who has an identity issue can freeze their credit file if they have been a victim of an identity breach. Obviously, they have access to free Credit Reports and can work with our team to manage the credit exposure, if they have been a victim of a data breach event. So, i dont know about you guys but i get the cell phone, i get phone calls at the most inopportune times. Im in the middle of asking important people questions, although that has not happened yet today. They are from telemarketers. Folks who want to sami something that i dont really give a dan if im biden of. I should be contacting them, they should be contacting me. Nonetheless, it occupies a lot of my time. It is a genuine pain in the neck. Maybe even a pain somewhere else. So, it is my understanding that folks are trying to bahamas in montana. I have expressed some frustration with an influx of advertisements and Loan Officers calling them, directly, after they have toured the Credit Reports. Is this being done because you are selling this information to thirdparty entities without their consent . Do they give consent . Are you not selling that information at all. Basically third parties in the business of trying to make money. Contacting people that, quite frankly, would contact them, normally, if that was the case. This is for all of you. Senator, i can go for. I think the product you are referring to is called mortgage triggers. It has been around for quite a long time. Consumers who do have the opportunity have can opt out of it. When consumers apply for the mortgage they get the opportunity to receive other officers. It was reduced a long time ago in conjunction with the more industry. Over a long period of time people have benefited significantly from Getting Better offers through that process. Got it but they have the opportunity to opt out of that . That is correct, senator. Thats perfect. Is that a big deal . Its just a phone call or how is that done . It is very easy to do, senator. It might not be known by all consumers but it is a simple process to do it. About the other two . You can go on to the experience of, scientists will be true for the other boroughs as well. Its a relatively simple straightforward process. Senator, i would like to echo mr. Cassin, we have similar functionality opt out functionality through our digital products. They are easy to use. I think i should also mention that trans union has some unique capabilities in this area where we can display display the brand of an incoming phone call. We can identify whether that phone call is a, so called, trusted call. We are rolling the solutions out in the fall. Okay, i appreciate that. Mr. Begor . We have that same opportunity for individuals to mark out of that marketing. Thank you. The senator from pennsylvania is recognized. Thank you, mister chairman. Gentlemen, today i want to be clear im not putting you on the spot here, we just had some research that my team has come up with. It hears that there appears a systematic bias in the Credit Reporting about 5000 adults more than half of black americans, report having low to no credit score. Hispanics, 41 . Whites, 37 . Asian americans, 18 . Again, is that something that perhaps might sound accurate to you right now . Senator, there is a Large Population, two large, in the United States that have no credit score. Our math is about 20 million americans are not in the formal credit file. There is another 60 million americans who have very few trade lines that are generally not scoreable. It is a Large Population. A big priority of ours is to use this alternative data to help them get access to Credit Report. So, you dont believe that there is an issue . That senator i agree completely. It is one of our priorities. Focus on access to credit. We think it is a big issue. It is one i know the committee is focused on. Leah went on to present a line with the issue. We are focused on using alternative data to address that. Are there any trends or patterns that you noticed about race or Credit Reports at all . Senator, perhaps i can add to that. Credit reports are not allowed to include any information, protected characteristics, race, religion, ethnicity. The reports are completely blind to those factors i think what we are talking about is the issue we discussed. One of under representation across many communities. We do agree that that is an issue. As we have said to senator scott, we believe that we have been very proactive in trying to address this issue. We believe that there is more we can do. We will be quite focused on making sure we can improve access for everyone across the United States. Thank you. According to the ftc active Service Members and their families are nearly three times more frequently victims of digital theft than other u. S. Adults. What are you able to do to protect credit for military families, both active duty and non active duty, including national guard, reserve . From a higher than average risk of financial fraud . Senator, perhaps i can answer on behalf of experian. We make our Credit Reports and scores free to all active servicemen. And women. And their families. It is entirely acceptable to them all the time. Senator, trans union does the same. I think that it bears repeating that, at the beginning of the pandemic, as an industry, Credit Bureaus went from providing consumers with one free Credit Report a year to one free Credit Report per week. I think that that is critical. We want consumers, and certainly active military personnel to be able to access their Credit Information, and to benefit from free monitoring products. Senator, the same with equifax. We have a program where active Service Members have access to that information. It is a priority of ours to support them. My last question, transgender and nonbinary consumers face a myriad of Credit Reporting problems. After they change their name, including fragmented reports, among other issues. These problems can be devastating. What steps have any of your agencies taking to prevent Credit Reporting problems for members of this community . Senator, if i could start the issue you raise is a very serious issue. It is why, at trans union, we in the industry we match consumers to credit records using a wide variety of criteria. There are often named variations. We also have to look at Social Security numbers. Phone numbers. A variety of addresses. Again, a broad range of criteria that ensures a high degree of matching accuracy. Similar, senator, at equifax we are focused on making the process when a name change needs to take place to make that seamless and easier for that individual to complete. Senator, just to complete it is the same at experian. We have similar processes. Thank you, all, for your answers. Thank you, senator fetterman. Senator warren of massachusetts. When she sits down, is recognized for five minutes. Thank you, mister chairman. The three of you testifying here today are the ceos of the largest Credit Reporting bureaus in the nation. Your companies determine the credit worthiness of just about every person in our country. You make money by collecting in selling information about an individuals past success in repaying their debts. The amount of money that they are. Other factors that you claim predict the likelihood of repaying their jets going forward. So, Credit Reports that you produce have big consequences for peoples lives. If someones Credit Report drops by, say 25 points, they could have a rental application turned down. They could be charged a higher price for a car loan. They could pay more for insurance. They could even miss a chance at a new job. It is really important that the data is right. Last year over 100 million americans had medical debt. Cfpb Research Shows that medical collection are less predictive of consumers future delinquency rates than non medical Debt Collection. And research by fica finds that medical collections that have been paid this one really gets me. The ones that have been paid or even less predictive of consumers creditworthiness then unpaid medical collection. Mr. Begor, you are the ceo of equifax. Do you agree with Research Showing that medical Debt Collection are not as good at predicting the likelihood of default, and as other kinds of debt like car loans, mortgages, and the like . Medical debt is a very complex topic, senator. A lot of medical debt is not taken on willingly by consumers. We appreciate the complexity of medical debt has but thats not the question im asking you. I understand it complex. Im questioning the predictability compared to car loans, mortgages, paying the rent . It still has a predictable you. But a senator should now we take proactive action to exclude medical debt under 500 i understand what youve already done. I will ask my question for the third time. Is it less predictive than other forms of paying your bills . It is still a protective element in paying bills. Is it less predictive than other forms of paying your bills . I dont have that Information Available you dont have that Information Available . Are you kidding me . You are the head of one of the biggest Credit Reporting agencies in the country . You dont know the relative predictability of one of the major forms of debt that he report on . Senator really . You expect me to believe that . Senator, as i said, we still believe it is predictive that is not the question if you can say it is predictive, i am shocked that you dont know how predictive it is compared to other forms of Debt Collection. Look, the reason that medical debt is a poor predictor of credit worthiness is our medical system is a mass. Most hospitals charge one price, they charge Insurance Companies another. Medical bills are often a moving target. Phils are routinely sent to the wrong party. Often a patient cant even figure out what it is in terms of supplies or services that they are being built for. Studies, which i assume you would have a red, show that as much as 80 of medical bills contain errors. The cfpb found that, quote, many medical bills reported on Credit Reports are disputed, inaccurate, and not owed, and quote. Some debt collectors have even stopped reporting medical bills to your companies because the data is so bad that they worry that they may be violating federal Consumer Protection laws by reporting it. Last year youre Companies Made changes in how you handle medical debt. Those changes were good. But you fixed roughly about half of the problem. Nearly half of the roughly 38 Million People with medical debt on their Credit Report will be left in the same position as if your companies had done nothing. The cfpb has said it will continue to assess whether unpaid medical debt should remain on americans Credit Reports at all. So mr. Begor, let me ask you this, if the cfpb word to conclude that data on medical debt is so full of errors that it does not belong on Credit Reports, would you support all Credit Reporting agencies removing entirely . We are certainly compared to collaborate with the cfpb. That is not the question i ask you. Do you want me to repeat the question . No, that is not necessary, senator. We would certainly support them. Thank you. Mr. Cartwright, what about you . If the cfpb concluded that the date it was so problematic that it doesnt belong a credible ports, would transient remove medical collection from Consumer Reports . Senator, we would work with the cfpb that is not the question i ask. Im not asking you whether or not you want to work. I am saying that if they conclude that the data is so problematic that it does not belong on Credit Reports, would trans union remove that data from consumers reports . Senator, to be clear, the cfpb is our regulator. If they were to direct us to remove the remainder of information, because the actions that we have taken voluntarily have removed 70 of Consumer Debt from the record. If they directed us to do so we, of course, would comply. All right. But i ask you a different question. The question i ask you is just a factual one. If they conclude that the data is so bad that they should not be listed on Credit Reports im not asking if whether or not if they put an order in place. If you had that information. Mr. Begor, claims to not know how bad medical debt reporting is. If you had that information from the cfpb, would transunion stop reporting it . Senator, we are committed to ankara and complete Credit Reporting so if the federal Consumer Protection agency said, these data are so inaccurate, they should not be on Credit Reports. Would you then remove them from the Credit Reports . Its a simple question. Mr. Carey, if you had this information from a federal regulator, would you use that information in order to get rid of this data . Take it off the reports . We would certainly act appropriately, senator, in the circumstances i am asking you. You are the ceo. Is it appropriate i find it difficult to believe that the cfpb wooden issue guidance on the matter. You are gonna wait to be ordered . Is that what you are saying . You dont do anything unless your order to do it . What im saying, senator, is we are data driven. Mr. Cassin, i am past my time. Let me turn to me. Would you support moving that a collection from of the Credit Report if the cfpb concluded that the date it was so problematic that it would not be on Credit Reports . I understand the nuance of your question. My first point is of the cfpb directors yes of course we would comply with that. If the cfpb concluded it was so problematic, the industry also agree that there wasnt an issue and removing that data from qatar reports, then we would do so to. I think it is a complex issue, senator. I think it needs to be looked at in the broad. I apologize to the chair for running over. I understand that Credit Reporting agencies are the last link in a very problematic chain of actors that hospitals, health systems, Insurance Companies, medical credit card issuers are all profiting from a Business Model of bogus, even Illegal Health care charges. I would like to see those ceos in front of us, as well. Credit reporting agencies are the one who turn all of that bad data into real pain for American Consumers. You are the ones that cost them real money, more than just those bills, in every part of their lives. It is time to Start Holding every link in the chain accountable. That includes the Credit Reporting agencies. Thank you, mister chairman. Senator brit is recognized for a second short round of questions, i believe. Thank you. As you know we had a hearing yesterday over the challenges of our housing industry. Many affordability issues in our housing industry come from record high inflation, crushing American Families across the board. Rising prices have cost a typical household here in the u. S. Over 10,000 since President Biden took office. I agree with Ranking Member scott that we must expand homeownership to more americans. Home ownership is especially central to family seeking to build inter generational wealth and to achieve the american dream. Mr. Begor, you talked about different ways additional and alternative data that you all were using to help in this area. Can you talk, specifically, about how you are working to assist more credit worthy families to accomplish the goal of homeownership . Thank you, senator. We are very aligned with that goal around expanding access to credit. To taking the credit invisible and moving them into formal invisible use of all arts hundred data and our technology. One example is a new mortgage Credit Report we rolled out a few weeks ago where we are adding cell phone utility payment data that will expand that credit file and result in as many as 2. 4 million subprime consumers increasing their credit score by 30 points. We are focusing on using alternative data to expand the Housing Market. Excellent. I hope yall continue to do that across the board. As you know too well there has been increasing trends of pressuring pressure reporting agencies to remove certain data from their reports. The accuracy of data that you collect is used for fair pricing in access to credit for hundreds of millions of people if we continue down the path of removing all different types of data from Credit Reports i would like for each of you to speak to some of the potential consequences that that might create. Mr. Cartwright, go ahead. Senator, if i could begin the discussion, at the outset Ranking Members got talked about and iran in Financial Services in this country where alone determination was influenced by relationships. Community standards. Prior practices. It has been an enormous innovation to the benefit of consumers to have comprehensive and accurate and objective information reported at scale to the reporting agencies. The decisions are data driven. They are unbiased. I feel like having a truthful and comprehensive record at the foundation of lending decisions is critical. Nobody wins if the data is inaccurate. Nobody wins if the data is, somehow, cherrypicked or gerrymandered for a particular outcome. Our role is to be the codont eons of this information to ensure that it is accessible to consumers. To ensure that they have a fair process to review and dispute the information if it is inaccurate. More information and Information Transparency drives Better Outcomes for consumers. Thank you, senator. I think we touched upon this issue, i think a perfect example would be experian boost, we have given millions of consumers the opportunity to add Additional Data to their file. The result of that is they get access to better credit and more Affordable Credit. Really, the solution to this issue is to provide more data, not less. More accurate reflections of how consumers have repaid obligations on time and to give consumers credit for that. I would add, senator, that we have a lot of examples from across the world of different systems. Systems that have less information generally perform much much poorer than systems that have more information. In the u. S. We have one of the most competitive and dynamic credit economies in the world. A lot of countries seek to emulate that. We have less information. It is generally worse outcomes. More information we have limits and mitigate the risk, correct . Correct. Mr. Begor . I would agree, more d the results in better formation. Complete and i would agree with your comment as well, the u. S. Credit system is the envy of the world. The scale of the information, the depth of information we have. The access to credit that consumers have. There is still so much more that we can do. Adding alternative data to really help those consumers that are not in the formal environment. Move them into it absolutely. Yes . Senator, if i could add one last point. Adding rental payments to the credit files, at scale, would materially drive Home Ownership in this country. If a consumer can make their rent payments consistently, they can make their mortgage payments. If they qualify for a mortgage than they can start to build generational wealth, as you pointed out. Absolutely. In conclusion, if there are potential cfpb announcements coming down the pipe i hope that those will be done in accordance with the notice and comment process that is required by law. I hope that you will all consider reliable risk based data, including all types of debt. As you are no, they are important to the work that you do. But more data that we have, the more people have access to credit. Thank you for being here. I think the three of you for being here today. I appreciate your testimony here, commitment to work with this committee. The committee will ensure that you all do better, as you promised. To produce more fair and accurate Credit Reports for consumers. This is, i believe, the First Time Ever that the ceos of all the representative three large Credit Reporting agencies have been in front of this committee. Or, i believe, in front of congress at all. This has been helpful today. This will not be the last time we do this. We talked a lot today about Financial Inclusion and access to credit. I want to reiterate the one important way to achieve this goal is to remove all medical debt from Credit Reports. You heard every Senate Democrat in this room ask you about that with passion, about how important that is. I dont think variances were very direct. I think you know that medical debt is not predictive. We talked about a whole lot of reasons for that. I think you know that were medical debt removed from Credit Reports, according to cfpb, the total amount of credit increase would rise by over 1,000. You know what that means the loan can people. When you just said, mr. Cartwright, people creating generational wealth. If medical debt is removed from a car accident or an unexpected illness, as huge illness usually is, you know that this will provide more people inability to buy a home and filled that equity and build that generational wealth. I can see from your answers you, intuitively, all have you understand what that could mean. You dont me, personally, a whole lot of low income people, in the united kingdom, atlanta, or chicago, ceos rarely do. Senators rarely do, unfortunately. That is part of the problem with this place. You know you will make the lives of a number of moderate to low income people who are struggling better if you remove the medical debt. It increases Credit Scores by 32 points. That clearly is significant in the lives of a lot of people. If you want to increase Financial Inclusion in critical access i urge you and somebody up here did to remove the medical debt from Credit Reports. Four senators who wish to submit questions for the hearing record those question to do one week from today thursday, may 4th. For the witnesses please submit your responses to questions for the record, none more than 45 days from the day that you receive them. With that, the committee is adjourned. Thank you