Credit Reporting

What are the credit reporting requirements for a loan under forbearance or other accommodation?

Section 4021 of the CARES Act amends the Fair Credit Reporting Act (FCRA) to create new Coronavirus-related reporting requirements. If a furnisher makes an accommodation with respect to one or more payments on a credit obligation or consumer account, the furnisher should continue to report the account as current if the consumer fulfills the terms of the accommodation. However, for accounts that were already delinquent before the accommodation was made, the furnisher is permitted to continue reporting the account as delinquent unless the consumer brings the account current. For more information, see CFPB’s Guidance on Credit Reporting During the COVID-19 Pandemic.

Has there been any additional guidance regarding reporting loans to credit bureaus during the COVID pandemic?

Yes. On June 16, 2020  the Consumer Financial Protection Bureau issued 10 FAQs related to consumer credit reporting amid the Coronavirus pandemic. The bureau previously issued a statement informing lenders they must comply with the credit reporting requirements of the CARES Act. These FAQs address the credit reporting requirements of the CARES Act, including considerations for furnishers when reporting consumers as current as required by the CARES Act. The FAQs also clarify that reporting that a consumer is affected by a natural or declared disaster is not a substitute for complying with the CARES Act credit reporting requirements. You can read the announcement here.