CFPB issues credit reporting guidance following passage of CARES Act

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The CFPB released a policy statement on Wednesday that outlines the responsibilities of credit reporting companies and furnishers during the COVID-19 pandemic, following last week’s passage of the CARES Act.

The CARES Act aims to provide emergency assistance to consumers and businesses affected by COVID-19, and includes provisions addressing consumer reporting requirements.

The policy statement highlights furnishers’ responsibilities under the CARES Act and informs consumer reporting agencies and furnishers of the bureau’s “flexible supervisory and enforcement approach” during the COVID-19 pandemic regarding compliance with the Fair Credit Reporting Act and Regulation V, according to the statement.

The statement acknowledges that many loan furnishers are or will be offering consumers affected by COVID-19 “various forms of payment flexibility, including allowing consumers to defer or skip payments, as required by the CARES Act or voluntarily” and that payment accommodations will not be reported as delinquencies resulting from the effects of COVID-19,

“The Bureau understands that the current crisis impacts the financial well-being of consumers and poses operational challenges for consumer reporting agencies and furnishers, including staffing challenges, that could temporarily impede their ability to timely comply with their statutory and regulatory consumer reporting obligations,” the statement said.

The full statement can be accessed on the CFPB’s website.

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