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HR 10316

Expanding Access to Credit through Consumer-Permissioned Data Act

118th Congress Introduced by Alma Adams and 10 co-sponsors

HR 10316 allows consumers to share financial data with lenders, improving credit access for those with limited histories and enhancing financial inclusion.

Introduced in House
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WeVote Research Nonpartisan
Bill Summary · HR 10316

Summary of HR 10316: Expanding Access to Credit through Consumer-Permissioned Data Act

Bill Number: HR 10316
Introduced On: December 5, 2024
Current Status: Introduced in House
Referred To: House Committee on Financial Services

Purpose and Intent

The Expanding Access to Credit through Consumer-Permissioned Data Act aims to enhance consumer access to credit by allowing individuals to share their financial data with lenders in a secure and controlled manner. The bill seeks to leverage consumer-permissioned data to improve credit assessments, particularly for those who may lack traditional credit histories.

Key Provisions

  1. Consumer-Permissioned Data Sharing:

    • The bill establishes a framework for consumers to grant permission to lenders to access their financial data, including bank statements, payment histories, and other relevant financial information.
    • This data sharing is intended to provide a more comprehensive view of an individual's creditworthiness.

  2. Regulatory Framework:

    • The bill mandates the creation of guidelines to ensure that data sharing is conducted securely and transparently, protecting consumer privacy.
    • It requires lenders to obtain explicit consent from consumers before accessing their data.

  3. Inclusion of Non-Traditional Data:

    • The legislation encourages the use of non-traditional credit data, such as utility payments and rental history, to broaden the criteria for creditworthiness.
    • This is particularly beneficial for individuals with limited or no credit history, such as young adults or those new to the country.

  4. Consumer Protections:

    • The bill includes provisions to safeguard consumers against potential misuse of their data and establishes penalties for violations of privacy standards.

Who Would Be Affected

  • Consumers: Individuals seeking credit, particularly those with limited credit histories, would benefit from increased access to credit options.
  • Lenders: Financial institutions and lenders would gain access to a broader range of data to assess creditworthiness, potentially leading to more informed lending decisions.
  • Regulatory Bodies: Agencies responsible for overseeing financial practices would need to implement and enforce the new guidelines established by the bill.

Procedural Aspects

  • The bill was introduced and referred to the House Committee on Financial Services on the same day, December 5, 2024.
  • Further legislative actions, including hearings and discussions, will be necessary before the bill can progress to a vote in the House.

Conclusion

HR 10316 represents a significant step towards modernizing the credit assessment process by utilizing consumer-permissioned data. By expanding access to credit for underserved populations, the bill aims to foster financial inclusion and support economic growth. As the bill moves through the legislative process, its implications for consumers and lenders alike will be closely monitored.

Compiled from official sources — confirm details with the bill’s official record.

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