To require the Bureau of Consumer Financial Protection and the Federal Trade Commission to conduct a study on use of additional key factors in credit scoring models, and for other purposes.

119th Congress Introduced by Cleo Fields

HR 5083 mandates a study on adding key factors to credit scoring, aiming to improve credit access for consumers with limited histories and reshape creditor evaluations.

Introduced in House

Summary of HR 5083: Study on Credit Scoring Models

Bill Number: HR 5083
Title: To require the Bureau of Consumer Financial Protection and the Federal Trade Commission to conduct a study on the use of additional key factors in credit scoring models, and for other purposes.
Status: Introduced in House
Introduced On: September 02, 2025
Primary Sponsor: Cleo Fields

Purpose and Intent

The primary purpose of HR 5083 is to mandate a comprehensive study by the Bureau of Consumer Financial Protection (BCFP) and the Federal Trade Commission (FTC) regarding the incorporation of additional key factors into credit scoring models. The bill aims to evaluate how these factors can influence the assessment of consumer creditworthiness, potentially leading to more equitable credit evaluations.

Key Provisions

The bill outlines specific requirements for the BCFP and FTC, including:

Report Submission:

A report must be submitted to Congress by December 31, 2025.
The report will cover:
- The use of credit scoring models that incorporate additional key factors.
- The impact of these models on creditor evaluations of consumer creditworthiness.

Key Factors to be Considered:
The study will focus on the following key factors for inclusion in credit scoring models:

Brokerage account statements
Payment history for installment contracts (e.g., Buy Now, Pay Later)
Electronic benefit transfer transaction records
Rental payment history
Utility payment history
Telecom and subscription-service payment history
Transaction data from depository institutions and credit unions
Payroll deposit frequency
Payment history for insurance
Public record data related to property ownership and business licenses
Peer-to-peer financial transaction activity

Definitions:

The bill defines "credit scoring model" and "key factor" as per existing regulations in the Fair Credit Reporting Act.

Impact

The bill is expected to affect various stakeholders, including:

Consumers: By potentially broadening the criteria used to assess creditworthiness, consumers with limited credit histories may have improved access to credit.

Creditors: Financial institutions may need to adapt their credit evaluation processes based on the findings of the study.

Regulatory Agencies: The BCFP and FTC will be tasked with conducting the study and reporting their findings, which may lead to future regulatory changes.

Procedural Aspects

Legislative Actions:

The bill was referred to the House Committee on Financial Services on the same day it was introduced.

This bill represents a significant step towards re-evaluating how creditworthiness is assessed, with the potential to create a more inclusive financial landscape for consumers.