House Concurrent Resolution 3

A CONCURRENT RESOLUTION URGING THE CONGRESS OF THE UNITED STATES TO ENACT LEGISLATION REQUIRING DATA ANALYTICS COMPANIES THAT CALCULATE AND DETERMINE CREDIT SCORES TO DISCLOSE TO CONSUMERS THE METHODS USED TO DETERMINE CREDIT SCORES.

WHEREAS, there are data analytics companies that create proprietary mathematical algorithms and methods used to calculate consumer credit scores, and these methods are trade secrets that are not shared with consumers or the government and are not directly regulated by any government agency; and

WHEREAS, if this information were to be disclosed to consumers, there would be an opportunity for consumers to improve their financial decision-making, which would, over time, improve financial stability throughout the nation; and

WHEREAS, the data used by data analytics companies to determine credit scores consists of certain factors that include payment history, credit utilization, length of credit history, and new credit accounts or requests, but these factors are not all-inclusive, and some of the most important methods in determining credit scores remain a secret that these companies refuse to disclose; and

WHEREAS, reliance by firms on consumer data significantly affects consumer access to financial opportunities, and without knowing the exact methods used to calculate credit scores, it is impossible for consumers and for firms using consumer data to be sure that the score is reasonable and accurate; and

WHEREAS, given the dire importance of responsible financial management, disclosure of the methods used to determine credit scores is critical for consumers to be able to substantially improve their financial management skills; and

WHEREAS, it is the policy of this Legislature to ensure that citizens of this state have the opportunity to prosper, and accordingly, we must ask Congress to pass a bill to require data analytics companies that calculate and determine credit scores to disclose to consumers the methods used to calculate credit scores, so that Mississippians may fully understand how their scores are affected by their financial behavior and thus improve their financial decision-making, which would result in a positive financial impact throughout Mississippi and the nation as a whole:

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF MISSISSIPPI, THE SENATE CONCURRING THEREIN, That we urge the United States Congress to enact legislation to require data analytics companies that calculate and determine credit scores to disclose to persons who have received a credit score, the methods, including, but not limited to, the formulas, algorithms, relative weight of factors and information, that are used for determining, calculating and producing credit scores.

BE IT FURTHER RESOLVED, That copies of this resolution be furnished to the President of the United States Senate, the Speaker of the United States House of Representatives, each member of the Mississippi congressional delegation and to the members of the Capitol Press Corps.