HR 5083119th CongressIn Committee

To require the Bureau of Consumer Financial Protection and the Federal Trade Commission to conduct a study on use of additional key factors in credit scoring models, and for other purposes.

Introduced: Sep 2, 2025

Financial Services

Standard Summary

Comprehensive overview in 1-2 paragraphs

This bill would require the Bureau of Consumer Financial Protection (CFPB) and the Federal Trade Commission (FTC) to jointly conduct a study and submit a report to Congress by December 31, 2025. The study would evaluate credit scoring models that incorporate a set of additional “key factors” beyond traditional credit data, and examine how these factors may affect how lenders assess a consumer’s creditworthiness. The bill specifies a defined list of potential data sources and data types to consider in such models, and it provides formal definitions related to credit scoring models and key factors. Overall, the bill does not create new regulatory requirements or mandate changes to credit scoring practices. Instead, it mandates an evaluative study that could inform future policy discussions about whether and how these expanded data sources should be used in credit scoring.

Key Points

1Requires CFPB and FTC to jointly conduct a study and submit a report to Congress no later than December 31, 2025.
2The study focuses on credit scoring models that include additional key factors listed in the bill and how such models affect lenders’ evaluations of borrower creditworthiness.
3The bill enumerates specific potential data sources as key factors, including:
4- Brokerage account statements
5- Payment history for installment contracts (e.g., Buy Now, Pay Later)
6- Electronic benefit transfer (EBT) transaction records
7- Rental payment history
8- Utility payment history
9- Telecom and subscription-service payment history
10- Transaction data from bank and credit union accounts
11- Payroll deposits or data on deposit frequency
12- Insurance payment history
13- Public record data related to property ownership, business licenses, and related court filings
14- Peer-to-peer financial transaction activity
15Provides definitions for “credit scoring model” and “key factor,” tying them to existing Fair Credit Reporting Act references.
16The act is a study-focused measure and does not itself impose new regulatory requirements or mandate immediate changes to credit scoring practices.

Impact Areas

Primary group/area affected- Consumers, particularly those with nontraditional or thin credit histories, who could be impacted by how expanded data sources might influence their credit scores.- Lenders and credit-scoring models developers, who would be the primary users of any future findings or policy recommendations stemming from the study.Secondary group/area affected- Financial services regulators and consumer protection agencies that monitor credit reporting and lending practices.- Data providers and platforms that manage or facilitate the listed data sources (e.g., brokerage firms, BNPL providers, rental platforms, utilities, telecoms, payroll services, insurance payments, and peer-to-peer payment services).Additional impacts- Privacy and data governance considerations due to use of broader and potentially sensitive data sources.- Potential influence on future regulatory or legislative actions related to credit scoring and the use of nontraditional data.- Possible impact on access to credit and pricing if policies were later adopted to expand or restrict use of these factors.

Generated by gpt-5-nano on Oct 8, 2025