Consumer groups are pressing for legislation to reform the way credit agencies handle errors on credit reports.

The calls to amend the Fair Credit Reporting Act come in the wake of an admission by Equifax last month that a coding problem caused sizable shifts in the credit scores of about 300,000 people. U.S. Rep. Al Lawson, D-Fla., is seeking bipartisan cosponsors for a bill to require credit agencies to respond to inquiries from third-party credit-repair companies or consumer nonprofits.

"Every day," he said, "banks, employees and government entities rely on credit reports to make critical decisions regarding an American's viability for home and car loans, employment and even government benefits, which are so critical today."

Equifax released a statement in August saying it has fixed the coding error but did not immediately respond to a request for comment on the bill. Right now, a loophole allows agencies to disregard correspondence on credit disputes if it doesn't come directly from the consumer.

"If agencies don't have to even touch the mail, that leaves community members that are really trying to change the game for their lives- and their kids - growing up in neighborhoods with a lot of violence," said the Rev. Andre Chapple, chief executive of the African American Empowerment Coalition in Los Angeles, a nonprofit that educates people about credit issues that can keep them from renting an apartment, buying a car or getting a job. "And they want to relocate, but they can't, because their credit score is suffering with a bunch of inaccurate things on there. It's just really unfair."

Michael Claunch, a senior adviser to the American Association of Consumer Credit Professionals, said consumers deserve access to expert help to repair their credit.

"Because the process of improving your credit is confusing, difficult and time-consuming," he said, "then third parties - such as credit repair organizations, as well as nonprofit community organizations - are needed in it."

According to the Consumer Financial Protection Bureau, 98% of the time, the big three credit-reporting agencies fail to provide relief to people who complain about errors on their credit reports.

It's estimated that one in three Kentuckians struggles to pay medical bills, and the issue continues to be a driving factor in personal bankruptcy cases. Local organizations are working to address the issue by partnering with debt-buying agencies to relieve residents' medical debt.

Reverend Kent Gilbert, pastor of Union Church in Berea, said during the pandemic, several churches teamed up with a debt consolidator to eliminate millions of dollars of medical bills. He said without boosting consumer protections, such as those enacted recently to stop surprise medical billing, the problem will worsen.

"What this really tells us is that we need to stop this debt from happening in the first place, and I think that should be our ultimate goal," Gilbert continued.

Research shows Black Americans, people living in the South and those living in states that have chosen not to expand Medicaid are more prone to carrying significant medical debt.

Kentucky Voices for Health is also tackling the issue by partnering with RIP Medical Debt, a charity that uses donations to forgive delinquent debt. For more information visit KYVoicesForHealth ."

Kelly Taulbee, director of communications and development with Kentucky Voices for Health, said while systemic changes are needed to address skyrocketing health-care costs, many Kentuckians need immediate help paying bills. She explained that through her organization's partnership with RIP Medical Debt, $1 donated helps eliminate more than $100 in medical debt. She said eligible cases are identified using consumer data from health-care providers to locate accounts that meet the criteria for debt relief.

"Donations made completely abolish that medical debt, no strings attached, no tax consequences. These portfolios are bought at a fraction of the original costs, and then once the debt is relieved, recipients are notified that their debt is gone," Taulbee said.

A 2018 consumer survey found 72% of Kentucky adults have struggled with health-care affordability. In eastern Kentucky, nearly 80% of people reported having problems and 1/3 said they'd been contacted by a debt-collection agency.

Small Business Saturday has come and gone and the North Carolina Sustainable Business Council urged people to keep "shopping local" this season.

The council said supporting homegrown businesses creates jobs and makes communities healthier. One of those businesses is the Little River Pecan Farm, with 100 pecan trees on a 10-acre section of sixth-generation land.

Crissy Neville, the farm's owner, emphasized the need to support local growers. She said shopping at local farms and agro-tourism sites preserves family businesses, but can also benefit the environment.

"Shipping is not involved, trucking is not involved," Neville pointed out. "Essentially, you know, you're buying locally, and that's the best thing that you possibly could do for lowering your carbon footprint."

Neville cited the added benefit of knowing where your food comes from. Studies estimate processed food in the U.S. travels more than 1,300 miles, and produce may travel more than 1,500 miles before reaching the table if it is not grown locally.

Rebekah Miel, owner of Miel Creative Studio in Durham, works with purpose-driven organizations to help them amplify their work. She pointed out local businesses often help their communities in ways beyond offering their products or services.

"Small businesses donate 250% more to local nonprofits and community causes," Miel explained. "That is also exemplified in our business. Our 'Design to Give' model means we give at least 5% back to local nonprofits, 1% of which is to local environmental nonprofits."

Anne Shaw, state director for the Small Business Center Network, said there is nothing "small" about the power of small companies. Their overall contribution to the workforce is enormous.

"The 1 million small businesses that exist in North Carolina, they employ 1.8 million employees," Shaw emphasized. "Which represents about 44% of North Carolina employees."

Shaw added research also shows on average, a local retailer will recirculate about 48% of their revenue back into the local economy, compared to about 14% of revenue from a national chain.


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A new report from the Consumer Financial Protection Bureau found the repayment process for federal student loans has been filled with errors.

Repayments began in October following a three-year pandemic-related pause. Since then, complaints of inaccurate bills, late notices and poor customer service have only increased.

Rep. Ayanna Pressley, D-Mass., said borrowers are struggling to reach loan service providers on the phone while more than 20,000 people received grossly incorrect bills.

"Now imagine opening your mail and seeing a bill for 100,000 dollars. This is ridiculous," Pressley asserted.

Pressley pointed out borrowers' financial situations are as precarious now as they were when the pandemic began and argued they deserve student debt relief. Critics countered American taxpayers should not be saddled with college loan debt they did not incur.

Officials with the Consumer Financial Protection Bureau said they are working to protect student loan borrowers from incompetent or predatory student loan servicers, including the more than 800,000 people who missed their first payment since the pause was lifted because their bills were mailed out too late.

Rohit Chopra, director of the bureau, said borrowers should be cautious, especially when talking to third-parties contracted by loan servicers for bill payments.

"If you're having trouble, please file a complaint," Chopra urged. "We're often able to get those individuals across the country fixes and sometimes clear answers on what really needs to happen."

The Supreme Court struck down President Biden's student loan forgiveness plan earlier this year, affecting more than 800,000 student borrowers in Massachusetts who would have been eligible to have some if not all their debt erased.


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