Many Americans have filed for unemployment during the COVID-19 pandemic. Many who are still working are also having difficulty making ends meet.
Predatory lenders are using this time to take advantage of those seeking financial assistance. Americans with mortgages, car payments, credit card bills, etc. are facing difficult, long-term consequences of decisions that could impact their futures.
These lenders report consumers who can’t pay because of the crisis. Consumer reporting agencies (CRAs), in turn, provide that information to potential employers, other lenders and other companies that use it to penalize consumers and workers.
New legislation is on the table that addresses one key issue already facing borrowers: negative credit reporting impacting those whose lives and livelihoods have been disrupted by COVID-19.
The Disaster Protection For Workers’ Credit Act will provide for an immediate four-month moratorium on all negative credit reporting and longer protections for people who face lasting financial hardship from the outbreak. This legislation hopefully will be passed by Congress, with bipartisan support from lawmakers. Its passage will protect Americans against future hardships by shielding them from employment discrimination and future loan denials while they focus on their essential needs during this time.
You can make an impact too. Consider calling the capitol switchboard at (202) 224-3121 and ask to be connected to your lawmakers, or find your Representatives and Senators online and reach out by email. Ask them to support the Disaster Protection For Workers’ Credit Act so that this already painful catastrophe doesn’t haunt Americans for years to come.
Let’s work together to help our fellow Americans during this difficult time.