Rep. Linda Sánchez introduces legislation to safeguard credit of deployed service members

March 19, 2015
Press Release

Washington, DC- Today, Congresswoman Linda Sánchez (D-CA) introduced the Credit Reporting Act for Military Families (CRAM). The bipartisan legislation would require credit reporting agencies to notify deployed military service members when a “negative information alert” is posted on their credit report.


“Our service members make tremendous sacrifices for our country, their credit score should not be one of them,” said Rep. Linda Sánchez. “However, too many of them face challenges when they return home because of missed payments incurred while they were deployed”


The Credit Reporting Act for Military Families allows deployed service personnel to notify credit reporting agencies of a military deployment. Secondly, it authorizes reporting agencies to contact deployed service members when an adverse action is posted on their credit report. Both actions would give creditors more context about the circumstances under which service members accrue missed payments.


“With a new wave of young service members transitioning into civilian life, the Credit Reporting Act for Military Families will give service members more control over their finances and the peace of mind that they will not encounter unforeseen problems when they are ready to purchase a car or a home.”  


Rep. Sánchez introduced the legislation after hearing from veterans and service members in the district who encountered challenges in obtaining business and home loans because of missed payments while they were deployed.


In addition to affecting personal finances, poor credit can also negatively impact security clearance for military personnel. According to VeteransPlus, a non-profit that promotes financial literacy among military families, delinquent indebtedness is the number one reason the Department of Defense denies or revokes security clearances for service members.


The bill has been endorsed by the Iraq and Afghanistan Veterans of America (IAVA) and the National Consumer Law Center.