HR 3621 RDS
change the way that they sell their products to 
consumers. The CRAs must also obtain con-
sumers’ express consent before enrolling them 
into subscription services as well as make it 
easer for consumers to cancel these programs. 
(C) The Consumer Bureau fined the other 
nationwide CRA—Experian—in March 2017 
for deceiving consumers about the use of credit 
scores that it marketed and sold to consumers 
as credit scores that were used by lenders and 
for illegally advertising its products on web 
pages 
that 
consumers 
accessed 
through 
AnnualCreditReport.com before they obtained 
their free annual disclosures. Experian was or-
dered to pay more than $3.7 million in restitu-
tion to harmed consumers and a civil monetary 
penalty of $2.5 million to the Consumer Bu-
reau. 
(D) The Consumer Bureau’s January and 
March 2017 consent orders with the three na-
tionwide CRAs show that these CRAs have en-
ticed consumers into purchasing products and 
services that they may not want or need, in 
some instances by advertising products or serv-
ices ‘‘free’’ that automatically converted into an 
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ongoing subscription service at the regular price 
unless cancelled by the consumer. Although 
these CRAs must now change their deceptive 
marketing practices, codifying these duties is an 
appropriate way to ensure that these companies 
never revert back to such misleading tactics. 
(E) Given the ubiquitous use of consumer 
reports in consumers’ lives and the fact that 
consumers’ participation in the credit reporting 
system is involuntary, CRAs should also 
prioritize providing consumers with the effective 
means to safeguard their personal and financial 
information and improve their credit standing, 
rather than seeking to exploit consumers’ con-
cerns and confusion about credit reporting and 
scoring, to boost their companies’ profits. 
(F) Vulnerable consumers, who have legiti-
mate concerns about the security of their per-
sonal and financial information, deserve clear, 
accurate, and transparent information about 
the credit reporting tools that may be available 
to them, such as fraud alerts and freezes. 
(10) CLARITY IN CREDIT SCORING.— 
(A) The February 2015 report of the Bu-
reau of Consumer Financial Protection titled 
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‘‘Consumer Voices on Credit Reports and 
Scores’’ found that some consumers are reluc-
tant to comparison shop for loans and other 
types of consumer credit products out of fear 
that they will lower their credit scores by doing 
so. 
(B) The Consumer Bureau found that one 
of the most common barriers for people in re-
viewing their own credit reports and shopping 
for the best credit terms was a lack of under-
standing of the differences between ‘‘soft’’ and 
‘‘hard’’ inquiries and whether requesting a copy 
of their own report would adversely impact their 
credit standing. 
(C) The Bureau of Consumer Financial 
Protection revealed that consumers with accu-
rate perceptions of their creditworthiness may 
be better equipped to shop for favorable credit 
terms. 
(11) CREDIT CHECKS AND EMPLOYMENT DECI-
SIONS.— 
(A) The use of consumer reports as a fac-
tor in making hiring decisions has been found 
to be prevalent in a diverse array of occupa-
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tions, and is not limited to certain high-level 
management or executive positions. 
(B) According to the California Labor 
Federation, only 25 percent of employers re-
searched the credit history of job applicants in 
1998. However, this practice had increased to 
43 percent by 2006 and to 60 percent by 2011. 
(C) A study titled ‘‘Do Job Applicant 
Credit Histories Predict Job Performance Ap-
praisal Ratings or Termination Decisions?’’, 
published in 2012, found that, while credit his-
tory might conceptually measure a person’s 
level of responsibility, ability to meet deadlines, 
dependability, or integrity, it does not, in prac-
tice, actually predict an employee’s performance 
or likelihood to quit. Credit reports contain 
many inaccuracies and credit history can be 
contaminated by events that are sometimes out-
side a person’s control, such as a sudden med-
ical expense after an accident or the loss of a 
job during an economic downturn. The study 
found that there is no benefit from using credit 
history to predict job performance or turnover. 
(D) Despite the absence of data showing a 
correlation between job performance and credit- 
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worthiness, employers continue to use credit 
checks as a proxy for assessing character and 
integrity. According to a 2012 Society for 
Human Resource Management survey, organi-
zations indicated that they used credit checks 
on job candidates primarily to reduce or prevent 
theft and embezzlement and to minimize legal 
liability for negligent hiring. 
(E) The use of credit checks for employ-
ment purposes creates a true ‘‘catch-22’’ for 
unemployed people with impaired credit. For 
example, the financial hardship caused by losing 
a job may cause some unemployed individuals 
to make late or partial payments on their bills, 
but their poor credit standing caused by this 
negative information on their consumer report 
can also impede their chances of obtaining a 
new job to end their financial distress. 
(F) A September 2014 report by the New 
York City Council’s Committee on Civil Rights 
noted that, for those who have been unemployed 
for an extended period of time and whose credit 
has suffered as they fell behind on bills, the use 
of credit reports in the hiring process can exac-
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