Last week, AFSA’s State Government Affairs team sent a comment letter to the West Virginia Senate regarding WV HB 4381 on credit reporting opt-ins.

In the letter, AFSA focuses on HB 4381’s mandate that consumers explicitly opt in for each disclosure or sale of their personally identifiable financial information by a credit reporting agency (CRA), which contradicts the permissible purposes outlined in the Fair Credit Reporting Act (FCRA). For example, HB 4381 would restrict creditors from obtaining consumer reports for fraud detection and other permissible purposes under the FCRA where consumer consent isn’t explicitly required, thus conflicting with the FCRA’s provisions.

The letter raises concerns with the bill’s potential to limit certain consumer financial data permitted under federal regulations, while still permitting lawyers to pursue claims against compliant CRAs. This legislation would hinder competition, disrupt creditors’ ability to detect and prevent fraud, and reduce consumers’ access to favorable rates. Consequently, this may curtail potential cost savings and access to secure and reasonably priced credit in West Virginia.

AFSA highlights how the bill would also diminish access to comprehensive credit information and introduce legal uncertainties that could disrupt the consumer lending sector, resulting in reduced credit availability for consumers. This would particularly affect individuals with limited credit histories or those seeking quick access to credit.

This letter, along with SGA’s other recent letters, can be found on the direct advocacy section of AFSA’s website.