Topics and Issues

COVID-19 (26)

Data Suppression (15)

In April 2020, the Policy & Economic Research Council (PERC) issued a blog posting, COVID-19 and Credit Reporting: Suppression is Not the Solution.  This posting sets forth a short but important point, data suppression in the wake of COVID-19 is more harmful for consumers and credit economies than not reporting accurately with consumers in accommodation programs.  In July 2020, the Policy & Economic Research Council (PERC) followed up it’s April 2020 blog post with a new report and press release. The July 2020 report found that “that data suppression/deletion measures put forward in some proposed legislation addressing the economic fallout of COVID-19 was more likely to harm borrowers than to help them. This report, titled Addition is Better than Subtraction: The Risks from Data Suppression and Benefits of Adding More Positive Data in Credit Reporting reviewed previous research that looked at data deletion and found that lower-income and minority borrowers would be most harmed. The report also recommended “adding positive (on-time) payment data of telecoms, cable and satellite TV, and broadband companies into the credit reporting system, rather than deleting negative (late) payment data.”