NLIHC joined on May 6 a sign-on letter led by the National Consumer Law Center urging the Consumer Financial Protection Bureau (CFPB) to prohibit debt collectors from reporting rent arrears accrued during the COVID-19 pandemic to consumer reporting agencies, including Equifax, Experian, and TransUnion. Doing so would provide significant protections to tenants who fell behind on rent during the pandemic.
Landlords typically refer rental arrears to debt collectors, who in turn report the arrears to consumer reporting agencies. Once a rental debt is reported, it can remain on a tenant’s credit report for up to seven years, significantly lowering their credit score and making it difficult to obtain new housing. Reporting arrears accrued during the COVID-19 pandemic would disproportionately impact low-income Black, Native, and Latino renters, who are more likely to report being behind on rent due to pandemic-related financial hardship and face the greatest threat of eviction.
Read the sign-on letter at: https://tinyurl.com/u74mrbpc