The top Democrat on the House Financial Services Committee is proposing an overhaul of credit reporting rules that would help consumers ensure their scores are accurate, The Hill reported today. Rep. Maxine Waters (D-Calif.) introduced legislation yesterday that provides more leeway to consumers to avoid and fix problems on their credit reports created by any wrong or outdated information. Three major credit bureaus — Experian, Transunion and Equifax — use consumers' information to create a credit score that ranges from 300 to 850. The score measures the ability of consumers to manage their debts. Waters's proposal would change the length of time that negative information is left on a report, from seven years to four years. The measure also would remove any adverse information on a credit report on a fully paid or settled debt, including a medical debt, which is in line with the latest credit scoring models developed by FICO and Vantage Score. Read more: http://thehill.com/policy/finance/217284-waters-proposes-bill-to-overha…
Click here to read the discussion draft of the legislation: http://democrats.financialservices.house.gov/FinancialSvcsDemMedia/file…