Since the COVID-19 crisis started, the Murphy Law Firm has been receiving many calls from worried consumers. Many people are rightly concerned that the loss of income will result in damage to credit reports as accounts go into arrears. The COVID-19 crisis will damage the credit reports of tens of millions of consumers, who will see their scores nosedive because of mass unemployment and loss of income. Lower credit scores will impede consumers’ ability to get affordable credit, jobs, housing, and to generally recover when this crisis is over.
The March 2020 federal Stimulus Bill provides some protection. The credit reporting provision in Section 4021 of the Stimulus Bill primarily protects consumers who are still current on their bills and who are approved for a forbearance, workout, or similar accommodation. For that group of consumers, their accounts still will be reported as current. To read the bill, see, https://www.documentcloud.org/documents/6819239-FINAL-FINAL-CARES-ACT.html
The Murphy Law Firm is available to provide assistance in the event a lender fails to abide by the Stimulus Bill’s credit reporting protections. Our firm has a significant experience litigating claims under the Fair Credit Reporting Act and the Fair Debt Collection Practices Act.