No Negative Credit Reporting

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    No Negative Credit Reporting

    No Negative Credit Reporting!

    COVID-19 sheds light on the lack of communal health and economic infrastructure and societal investment. The cost of inadequate systems and investment will be worsened by flawed economic policy. And the indirect damage the virus causes through economic ripple effects will be large as households strive to balance credit obligations. 

    Individuals and families affected by this crisis should not be punished for any unexpected hardship resulting from this outbreak. With a directive to remain at home and practice physical distancing, many people face significant burdens of covering living expenses, including housing, groceries, and medicine. With so many households living paycheck to paycheck, the sudden nature of this pandemic has further interfered with people's ability to financially respond to the pandemic. 

    Credit inequality contributes to the racial wealth gap. Since the 2008 economic downturn, many Americans have had an easier time accessing credit. Restrictions have eased, and that has allowed millions to buy homes and start businesses. The recovery has worked well for Americans generally — except Black people. Black families have ten times less wealth than white families and credit is a byproduct of why. As the wealth gap continues to widen, suspending negative credit reporting during and after the Coronavirus pandemic, would help limit the financial harming Black families face.

    Here is the Petition:

    Our message to Congress:

    Through no fault of their own, communities are facing immediate hardship in making timely payments on debts such as mortgages, student loans, car loans, business loans, or credit cards, particularly if they do not have paid leave at their disposal. Not meeting the aforementioned obligations can reflect negatively on a consumer report. Negative credit reporting has a profound disparate impact on Black and other underserved communities. Study after study shows Black Americans report having worse credit scores than counterparts. 

    Once negative information is reported to credit agencies, impacted consumers are likely to see a reduction in their credit scores, which may limit credit access in the future. The effects of negative information in a credit file can last seven to ten years. Black and marginalized communities are already disproportionately affected by credit scoring and face a heightened sense of vulnerability at this time. Negative credit scoring pushes an already underserved community to seek nontraditional or less than prime alternatives in order to access credit.  Black and underserved consumers will encounter the rippling effects of financial insecurity as uncertainty looms. And deserve not to have their credit history suffer as a result. We call on you to suspend negative credit reporting at this time.