“Maximum Possible Accuracy” in Credit Reports

The Federal Trade Commission (FTC) estimates that twenty-one percent of credit reports contain material errors, 1 and poor credit reports can cause significant harm.Credit reports affect whether consumers get loans and how much they pay, 2 and credit reports are used for more than just credit.Insurers use credit reports to set premiums, 3 landlords use credit reports to decide whether to rent apartments, 4 and both private and public employers use credit reports to determine whom to hire.When the Equal Employment Opportunity Commission (EEOC) sued an employer for considering credit reports, the Sixth Circuit noted that the EEOC itself considered credit reports in filling eighty-four of its ninety-seven positions.5 The EEOC is not alone in criticizing the credit reporting industry.States, Senators, and Representatives have taken action aimed at reform.6 Eleven states and several cities limit the use of credit reports in employment, 7 and Senators Elizabeth Warren and Bernie Sanders have co-sponsored legislation that would