Senate Democrats introduce legislation to help trans people get accurate credit scores

Senate Democrats have introduced legislation that could help transgender and nonbinary people receive accurate credit scores.

The Name Accuracy in Credit Reporting Act, introduced last week by Sens. John Fetterman (D-PA) and Tina Smith (D-MN), would amend the Fair Credit Reporting Act to require credit reporting agencies to only use a person’s current legal name in credit reports, according to The Hill. In March, Rep. Ayanna Pressley (D-MA) marked Transgender Day of Visibility by introducing companion legislation in the House.

Related:

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As Fetterman’s office noted in a press release announcing the introduction of the legislation, people who legally change their names often face challenges obtaining accurate credit reports and scores. When they apply for credit using their new names, credit bureaus create entirely new credit files. These fragmented credit reports can result in a drop in their credit scores, impacting their ability to access loans, rent homes, and get jobs.

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Currently, even when trans and nonbinary people update their credit files, credit agencies can continue to use their deadnames in their credit reports, potentially outing them and exposing them to harassment and discrimination. As The 19th* noted, 27 percent of trans respondents to a recent survey conducted by the Center for LGBTQ Economic Advancement & Research and the Movement Advancement Project said they faced discrimination in banking and financial services.

“Amid the ongoing attacks on the LGBTQ community, I am proud to introduce this bill with Senator Smith that is a commonsense measure to make it easier for people who change their names to obtain accurate credit reports and information,” Fetterman said in a statement. “Whether it’s transgender and nonbinary people or survivors of domestic violence, every American should be able to get an accurate credit report and score.”

“Nobody should face unnecessary burdens to receive a mortgage or a car loan, but transgender and nonbinary Americans have to deal with credit agencies that can’t even get their name right,” said Smith. “This bill fixes a simple issue that Minnesotans have been asking me to help fix, and it will help trans and nonbinary Americans clear a hurdle to accessing loans.”

Fetterman previously raised the issue to the CEOs of Equifax, Experian, and TransUnion—the “big three credit reporting agencies—during an April Senate Committee on Banking, Housing, and Urban Affairs hearing.

Sens. Tammy Baldwin (D-WI), Mazie Hirono (D-HI), Ed Markey (D-MA), Jeff Merkley (D-OR), Patty Murray (D-WA), Bernie Sanders (I-VT), and Brian Schatz (D-HI) joined Fetterman and Smith in co-sponsoring the legislation, which has been endorsed by over a dozen LGBTQ+ and progressive organizations.