The Fair and Accurate Credit Transactions Act of 2003: Will Preemption of State Credit Reporting Laws Harm Consumers?

Epshteyn provides an overview of the national credit reporting system and how it is governed by the Fair Credit Reporting Act (FCRA). He contends that the purported economic benefits of a uniform credit system may have been overstated by its proponents, and that experience has shown that consumers are better served by a flexible, dual regulatory approach in which the federal government establishes baseline standards and allows the states to quickly respond to local and unforeseen concerns. He also argues that the Fair and Accurate Credit Transactions Act of 2003, which reforms the FCRA and the credit reporting system, preempts state laws, which may leave consumers vulnerable to unanticipated threats, and that it significantly undermines the states' traditional role as "laboratories of democracy," hampering their unique ability to experiment with a variety of innovative solutions to complex problems.