Legislation recently introduced in the state House would prohibit credit reporting agencies from negatively reporting any missed or late payments that were the result of financial hardships caused by the COVID-19 disaster emergency.
The bill would amend the Credit Reporting Agency Act to suspend negative reporting for 90 days after the disaster declaration is lifted.
Kenyatta said that delinquent payment reports stemming from Pennsylvanians facing financial difficulties stand to mar otherwise decent credit histories and could potentially prevent residents from qualifying for a loan, a mortgage, employment, and housing.
“Pennsylvanians have had their lives and livelihoods upended in the wake of this pandemic, with some families having endured the temporary lapse of a paycheck while waiting for federal stimulus money, or for their unemployment compensation to start,” said Rep. Malcolm Kenyatta (D-Philadelphia), who introduced the bill. “Others, however, have relied on credit cards, or sought unplanned loans from financial institutions, or even borrowed from friends.”
Kenyatta said he felt it was the job of state lawmakers to ensure that those struggling from the financial strain can rebuild their lives after the crisis is over and won’t be affected long term by being
unable to pay debtors.
Kenyatta is seeking bipartisan support for his legislation.