WHO’S KEEPING SCORE? HOLDING CREDIT BUREAUS ACCOUNTABLE AND REPAIRING A BROKEN SYSTEM HEARING BEFORE THE COMMITTEE ON FINANCIAL SERVICES U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS FIRST SESSION FEBRUARY 26, 2019 Printed for the use of the Committee on Financial Services Serial No. 116–3 ( VerDate Nov 24 2008 14:54 Aug 07, 2019 Jkt 095071 PO 00000 Frm 00001 Fmt 6011 Sfmt 6011 K:\DOCS\HBA057.000 TERRI WHO’S KEEPING SCORE? HOLDING CREDIT BUREAUS ACCOUNTABLE AND REPAIRING A BROKEN SYSTEM VerDate Nov 24 2008 14:54 Aug 07, 2019 Jkt 095071 PO 00000 Frm 00002 Fmt 6019 Sfmt 6019 K:\DOCS\HBA057.000 TERRI WHO’S KEEPING SCORE? HOLDING CREDIT BUREAUS ACCOUNTABLE AND REPAIRING A BROKEN SYSTEM HEARING BEFORE THE COMMITTEE ON FINANCIAL SERVICES U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS FIRST SESSION FEBRUARY 26, 2019 Printed for the use of the Committee on Financial Services Serial No. 116–3 ( U.S. GOVERNMENT PUBLISHING OFFICE 35–632 PDF WASHINGTON : 2019 VerDate Nov 24 2008 14:54 Aug 07, 2019 Jkt 095071 PO 00000 Frm 00003 Fmt 5011 Sfmt 5011 K:\DOCS\HBA057.000 TERRI HOUSE COMMITTEE ON FINANCIAL SERVICES MAXINE WATERS, California, Chairwoman CAROLYN B. MALONEY, New York PATRICK MCHENRY, North Carolina, NYDIA M. VELA´ ZQUEZ, New York Ranking Member BRAD SHERMAN, California PETER T. KING, New York GREGORY W. MEEKS, New York FRANK D. LUCAS, Oklahoma WM. LACY CLAY, Missouri BILL POSEY, Florida DAVID SCOTT, Georgia BLAINE LUETKEMEYER, Missouri AL GREEN, Texas BILL HUIZENGA, Michigan EMANUEL CLEAVER, Missouri SEAN P. DUFFY, Wisconsin ED PERLMUTTER, Colorado STEVE STIVERS, Ohio JIM A. HIMES, Connecticut ANN WAGNER, Missouri BILL FOSTER, Illinois ANDY BARR, Kentucky JOYCE BEATTY, Ohio SCOTT TIPTON, Colorado DENNY HECK, Washington ROGER WILLIAMS, Texas JUAN VARGAS, California FRENCH HILL, Arkansas JOSH GOTTHEIMER, New Jersey TOM EMMER, Minnesota VICENTE GONZALEZ, Texas LEE M. ZELDIN, New York AL LAWSON, Florida BARRY LOUDERMILK, Georgia MICHAEL SAN NICOLAS, Guam ALEXANDER X. MOONEY, West Virginia RASHIDA TLAIB, Michigan WARREN DAVIDSON, Ohio KATIE PORTER, California TED BUDD, North Carolina CINDY AXNE, Iowa DAVID KUSTOFF, Tennessee SEAN CASTEN, Illinois TREY HOLLINGSWORTH, Indiana AYANNA PRESSLEY, Massachusetts ANTHONY GONZALEZ, Ohio BEN MCADAMS, Utah JOHN ROSE, Tennessee ALEXANDRIA OCASIO-CORTEZ, New York BRYAN STEIL, Wisconsin JENNIFER WEXTON, Virginia LANCE GOODEN, Texas STEPHEN F. LYNCH, Massachusetts DENVER RIGGLEMAN, Virginia TULSI GABBARD, Hawaii ALMA ADAMS, North Carolina MADELEINE DEAN, Pennsylvania JESU´ S ‘‘CHUY’’ GARCIA, Illinois SYLVIA GARCIA, Texas DEAN PHILLIPS, Minnesota CHARLA OUERTATANI, Staff Director (II) VerDate Nov 24 2008 14:54 Aug 07, 2019 Jkt 095071 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 K:\DOCS\HBA057.000 TERRI C O N T E N T S Page Hearing held on: February 26, 2019 ............................................................................................ 1 Appendix: February 26, 2019 ............................................................................................ 103 WITNESSES TUESDAY, FEBRUARY 26, 2019 Begor, Mark, CEO, Equifax .................................................................................... 5 Boundy, Craig, CEO, Experian North America .................................................... 8 Brown, Jennifer, Associate Director, Economic Policy, UnidosUS ...................... 81 Brown, Thomas P., Partner, Paul Hastings Law Firm ........................................ 84 Mierzwinski, Edmund, Senior Director, Federal Consumer Programs, U.S. Public Interest Research Group .......................................................................... 83 Peck, James M., President and CEO, TransUnion ............................................... 6 Rice, Lisa, President and CEO, National Fair Housing Alliance (NFHA) .......... 78 Wu, Chi Chi, Staff Attorney, National Consumer Law Center (NCLC) ............. 79 APPENDIX Prepared statements: Begor, Mark ...................................................................................................... 104 Boundy, Craig ................................................................................................... 111 Brown, Jennifer ................................................................................................ 113 Brown, Thomas P. ............................................................................................ 123 Mierzwinski, Edmund ...................................................................................... 138 Peck, James M. ................................................................................................. 155 Rice, Lisa, .......................................................................................................... 168 Wu, Chi Chi ...................................................................................................... 179 ADDITIONAL MATERIAL SUBMITTED FOR THE RECORD Waters, Hon. Maxine: Written statement of Starn, O’Toole, Marcus & Fisher ................................ 225 Written statement of the National Apartment Association and the Na- tional Multifamily Housing Council ............................................................ 283 Written statement of the National Association of Consumer Advocates ..... 285 Written statement of the National Association of Federally-Insured Credit Unions ............................................................................................................ 288 Written statement of the National Housing Law Project ............................. 290 Garcia, Hon. Sylvia: Written statement of various undersigned consumer, civil rights, and advocacy groups ............................................................................................ 293 UnidosUS Fact Sheet dated December 2018 .................................................. 295 Begor, Mark: Written responses to questions for the record submitted by Representa- tive Beatty ..................................................................................................... 299 Written responses to questions for the record submitted by Representa- tive Lynch ...................................................................................................... 302 Mierzwinski, Edmund: Written responses to questions for the record submitted by Representa- tive Beatty ..................................................................................................... 303 Written responses to questions for the record submitted by Representa- tive Foster ...................................................................................................... 306 (III) VerDate Nov 24 2008 14:54 Aug 07, 2019 Jkt 095071 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 K:\DOCS\HBA057.000 TERRI IV Page Peck, James M.: Written responses to questions for the record submitted by Representa- tive Lynch ...................................................................................................... 308 Written responses to questions for the record submitted by Representa- tive Beatty ..................................................................................................... 310 Rice, Lisa: Written responses to questions for the record submitted by Representa- tive Foster ...................................................................................................... 313 Written responses to questions for the record submitted by Representa- tive Beatty ..................................................................................................... 314 Wu, Chi Chi: Written responses to questions for the record submitted by Representa- tive Foster ...................................................................................................... 316 Written responses to questions for the record submitted by Representa- tive Beatty ..................................................................................................... 318 Written responses to questions for the record submitted by Representa- tive Lynch ...................................................................................................... 320 VerDate Nov 24 2008 14:54 Aug 07, 2019 Jkt 095071 PO 00000 Frm 00006 Fmt 5904 Sfmt 5904 K:\DOCS\HBA057.000 TERRI WHO’S KEEPING SCORE? HOLDING CREDIT BUREAUS ACCOUNTABLE AND REPAIRING A BROKEN SYSTEM Tuesday, February 26, 2019 U.S. HOUSE OF REPRESENTATIVES, COMMITTEE ON FINANCIAL SERVICES, Washington, D.C. The committee met, pursuant to notice, at 10:05 a.m., in room 2128, Rayburn House Office Building, Hon. Maxine Waters [chair- woman of the committee] presiding. Members present: Representatives Waters, Maloney, Velazquez, Sherman, Meeks, Clay, Scott, Green, Cleaver, Perlmutter, Foster, Beatty, Heck, Vargas, Gottheimer, Gonzalez of Texas, Lawson, San Nicolas, Tlaib, Porter, Axne, Casten, Pressley, Ocasio-Cortez, Wexton, Lynch, Gabbard, Adams, Dean, Garcia of Illinois, Garcia of Texas, Phillips; McHenry, Wagner, Posey, Luetkemeyer, Huizenga, Duffy, Stivers, Barr, Tipton, Williams, Hill, Emmer, Zeldin, Loudermilk, Mooney, Davidson, Budd, Kustoff, Hollings- worth, Gonzalez of Ohio, Rose, Steil, Gooden, and Riggleman. Chairwoman WATERS. The Committee on Financial Services will come to order. Without objection, the Chair is authorized to declare a recess of the committee at any time. Today’s hearing is entitled, ‘‘Who’s Keeping Score? Holding Cred- it Bureaus Accountable and Repairing a Broken System.’’ I now recognize myself for 4 minutes to give an opening statement. Today, this committee convenes for