WASHINGTON– A new trade association around consumer credit repair has been formed. The American Association of Consumer Credit Professionals (AACCP) has been formed, in part, it said, because an estimated one-in-five credit reports contains an error.
“While their efforts are laudable, state and federal regulatory agencies have attempted to assist consumers by engaging in consumer education efforts regarding ‘repairing credit’ that have been relatively limited, focusing primarily on mitigating identity theft and mixed file errors,” the group said in announcing its formation. “A substantial gap exists between these efforts and the many problems consumers face on a regular basis. AACCP members are stepping in to fill that gap.”
The organization said that in response to the COVID-19, regulations requiring Credit Reporting Agencies (CRAs) to investigate consumer complaints regarding errors in their credit reports were relaxed, leading to a “massive spike” in the already high numbers of consumer complaints to the CFPB about credit reporting.
‘A Measure of Fairness’
“While the government’s financial assistance and loan accommodations have undoubtedly helped consumers, the relaxation of regulations and the unprecedented dislocation has also created more complexity and uncertainty in the credit reporting system,” the AACCP said. “Further, errors on consumer credit reports that negatively impact credit scores disproportionately appear on the statements of Blacks, Hispanics and other minorities, creating yet another economic barrier to building wealth and serving as another example of structural racism. AACCP Members advocate on behalf of minority consumers in the credit system to help restore a measure of fairness and get minority consumers the access to credit they deserve.”
The AAACP has launched a website here.