Protect Consumer Credit Battered by COVID-19 Crisis

Target: Kathy Kraninger, Director of the Consumer Financial Protection Bureau

Goal: Don’t hit consumers with crippling credit scores during unforeseen economic turmoil.

Bad credit scores can sink many consumers even in good economic times. During a wide-scale economic crisis, such as that caused by COVID-19, the collision of credit and consumer needs can induce a massive crash with a devastating domino effect. For millions of Americans, these worst-case scenarios have become a troubling reality.

With so many people losing employment and enduring economic hardship, missed bill payments have unfortunately skyrocketed. At the same, time, credit card companies have started lowering credit limits and even canceling cards for every type of customer. Both of these new normals can adversely impact credit scores, which in turn hurt a person’s ability to secure needed loans and financial assistance. This corrosive cycle causes negative ripples throughout the entire economy and places even more burden on consumers who are being punished for a crisis beyond their control. Some members of Congress have lobbied for stronger protections of consumer credit scores as the US and the world navigates this tumultuous time.

Sign the petition below to join these leaders in demanding safeguards for a critical facet of consumer protection.

PETITION LETTER:

Dear Ms. Kraninger,

No one needs a reminder about the tremendous strain placed on consumers in the midst of the COVID-19 crisis. While the government has taken active steps to help consumers, one of the most lasting impacts with long-term consequences needs much more rigorous evaluation. Credit scores are a fundamental backbone of the American economy, enabling significant milestones, from home purchases to small business start-ups. In this trying period however, the credit scores of too many consumers are under attack.

Companies nationwide are slashing credit limits unexpectedly, leaving many consumers in a bind and their credit scores at imminent risk. The economic epidemic of missed payments has also hit many consumers—and credit scores—hard. Congress has demanded stronger consumer protection measures from credit reporting agencies such as Equifax. Please solidify their efforts to better safeguard consumers’ credit scores during the unpredictable months ahead.

This challenge may one day pass, but its lingering effects should not haunt otherwise conscientious consumers for years to come.

Sincerely,

[Your Name Here]

Photo Credit: 401kcalculator




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