We are providing information sent out by CDIA concerning recent natural disasters that have happened in the USA and how these events may effect your credit reporting options.

Important Metro 2® Announcement
 

Consumer reporting agencies are mindful of recent natural disasters across the United States. 

The Consumer Data Industry Association (CDIA) is reissuing an important Metro 2® announcement on disaster area and forbearance reporting to remind data furnishers how they can work with their customers relative to consumers’ storm-related financial problems. The Metro 2® announcement below is a reminder to all data furnishers that there is specific guidance available for furnishers who report information about (1) consumers affected by natural and declared disasters (FAQ 56), and (2) accounts in forbearance as a result of a natural or declared disaster, or for other reasons (FAQ 45).  Please review this announcement and guidance closely.  For additional questions about data reporting in the Metro 2® Format, please contact CDIA and the Metro 2® Task Force at [email protected]; or contact your consumer reporting agency representatives directly.

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Reporting Credit Account Information in the Metro 2® Format for Consumers Affected by Natural Disasters  

Consumer reporting agencies know that natural disasters occur across the United States from time-to-time.  Institutions that furnish data to consumer reporting agencies in the Metro 2® Format are reminded that there is specific guidance in FAQ 56 of the Credit Reporting Resource Guide® to assist with the reporting of account information for consumers affected by natural disasters. 
 
You can find the FAQ 56 and other relevant furnisher information on the Metro 2® portion of the CDIA website.                                                                                                             

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Reporting Forbearance Information

Forbearance is a period of time during repayment in which a borrower is permitted to temporarily postpone making regular monthly payments. The debt is not forgiven, but regular payments are suspended until a later time. As an example, forbearance may be granted if a borrower is experiencing temporary financial difficulty. The consumer may be making reduced payments, interest-only payments or no payments.  

Institutions that furnish data to consumer reporting agencies in the Metro 2® Format are reminded that there is specific guidance in FAQ 45 of the Credit Reporting Resource Guide® to assist with the reporting of accounts in forbearance as a result of a natural or declared disaster, or for other reasons.

You can find the FAQ 45 and other relevant furnisher information on the Metro 2® portion of the CDIA website.

Thank you,
 
Consumer Data Industry Association

The question, "Should we be reporting our customers credit history and if so, why?" is often asked. The simple answer is yes. Credit history data opens doors. We can obtain a loan to start a small business, buy a home or to help pay for our chlidren to go to college because of a credit report. Data protects us from crimes like identity thefts.
 
A credit report supplies important information about a perspective customer, tenant, employee, etc. Each report contains a record of  their credit history that includes information about:

• Identity. Name, address, full or partial Social Security number, date of birth, and possibly employment information.
• Existing credit. Information about credit a consumer or business has, such as their credit card accounts, mortgages, car loans, and student loans. It may also include the terms of their credit, how much they owe creditors, and their history of  payments.
• Public record. Information about any court judgments against, any tax liens against property, or whether a bankruptcy has been filed and the status.
• Inquiries. A list of companies or persons who recently requested a copy of their credit report.

Credit reports are important because lenders, insurers, employers, and others may obtain a credit report from credit bureaus to assess how a consumer or business manages financial responsibilities. For example:

• Lenders may use credit report information to decide whether a consumer or business can get a loan and the terms for the loan (for example, the interest rate they will charge).
• Insurance companies may use the information in deciding on the type of insurance policy and which rates to set.
  
• Employers may use a credit report in their decision whether to hire you.
• Telephone and utility companies may use information in a credit report to decide whether to provide services.
• Landlords may use the information to determine whether to rent an apartment to someone.

For more information about credit reporting you can visit these sites:

CDIA consumer data reporting

Federal Reserve - credit