Insurers Praise Bush Support For Credit Act

Insurers Praise Bush Support For Credit Act

NU Online News Service, July 2, 3:29 p.m. EDT?Insurance groups are applauding both Congress and the Bush administration for their efforts to reauthorize the Fair Credit Reporting Act.

In Congress, a bipartisan coalition has introduced legislation, called the Fair and Accurate Credit Transactions Act, H.R. 2622, that would reauthorize FCRA as well as establish new consumer protections against identity theft.

Meanwhile, Treasury Secretary John W. Snow recently announced the administration's support for permanent reauthorization that includes consumer provisions on identity theft and other protections.

FCRA is scheduled to expire at the end of the year.

David F. Snyder, vice president with the Washington-based American Insurance Association, praised the Bush administration for its support of FCRA reauthorization. FCRA, Mr. Snyder said, protects consumers from a confusing patchwork of state standards that would be a drag on the economy.

"Making FCRA permanent, as the administration proposes, will make sure consumers can always benefit from uniform standards that help keep costs down," Mr. Snyder said.

Monte Ward, vice president of federal affairs for the Indianapolis-based National Association of Mutual Insurance Companies, added that FCRA's enactment in 1996 has improved access to credit, which has played a key role in strengthening the economy.

Carl Parks, senior vice president of government relations with the Des Plaines, Ill.-based National Association of Independent Insurers, added that NAII strongly supports uniform treatment of credit information and also recognizes the need to fight identify theft.

"Reauthorization of the FCRA provisions will provide businesses of all sizes with an opportunity to continue to meet consumer needs, fight fraud and help prevent identity theft," he said.

H.R. 2622 was introduced by Reps. Spencer Bachus, R-Alabama, Darlene Hooley, D-Ore., Judy Biggert, R-Ill., and Dennis Moore, D-Kan.

In addition to reauthorizing the FCRA, which preempts state laws and provides a uniform system for credit reporting, the legislation takes new steps to fight identity theft. For example, the legislation requires credit card companies that receive a request for additional cards within 30 days of receiving a change of address notify the cardholder at both the new and former address.

In addition, credit reporting agencies must develop procedures for notifying consumers of their rights if they believe they may be victims of fraud or identity theft.

Other consumer protections include speedier corrections of disputed information, free annual credit reports to consumers and free analysis of credit scores.

Secretary Snow said in a statement that the administration supports FCRA reauthorization because of the impact it has had on people and the economy.

"The availability of credit improves peoples' lives greatly and gives them a degree of economic freedom that is otherwise unimaginable," he said.