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In October 2022, 26 consumer, civil rights, and advocacy groups wrote to federal financial institution regulators. These organizations asked these agencies “to encourage lenders to refrain from reporting negative information to the nationwide consumer reporting agencies (CRAs), for consumers impacted by Hurricanes Fiona and Ian. These lenders should be encouraged to refrain from supplying negative information for consumers whose addresses as listed in the lender’s files are within the presidentially declared disaster zone, or if the consumer requests relief or an accommodation due to the aftermath of these hurricanes. Such encouragement from your agency could include statements that withholding information does not cause an inaccuracy under the Fair Credit Reporting Act.”
Alternatively, the consumer, civil rights, and advocacy groups requested that “at a minimum, lenders should be encouraged to follow the credit reporting provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act for survivors of Hurricanes Fiona and Ian. If a consumer is able to obtain an accommodation from a lender, i.e., a forbearance, a payment deferral, a partial payment agreement, or a loan modification, then the lender should report the same status for the account as it stood prior to the accommodation (assuming the consumer is in compliance with the terms of the accommodation).”
Additional resources:
- CDIA notice on disaster reporting (Sept. 2022)
- CFPB press release and report on the use of disaster codes (Nov. 2018)