PA Rep.'s Bill Could Add On-Time Utility Payments To Credit Score

MALVERN, PA — State Rep. Kristine Howard (D-Chester) has introduced a bill to make public utility companies give customers the option of having their payments reported to credit bureaus.

House Bill 2932 which would require public utility companies to offer the option, helping the credit scores of those who demonstrate a history of on-time recurring payments.

"The economic fallout caused by the pandemic has caused many consumers to miss payments, hurting their credit scores," Howard said.

"Consumers striving to establish or repair their credit find an unbalanced system only reporting negative, delinquent payments, while other on-time payments go unreported," Howard added.

Howard explained H.B. 2932 would help consumers build up good credit by giving the option of including timely payments to utility companies in reports to credit agencies, and would allow consumers to opt-in at any time, with no restrictions or expiration date.

According to Howard, Experian was the first credit reporting agency to offer consumers the ability to have on-time utility and rent payments credited to their report to improve their credit score, but the other agencies have yet to offer anything similar.

"It's time we change this credit reporting system to benefit hardworking consumers who pay utility bills on time. My bill would provide a lifeline and help people recover from the financial crisis caused by the pandemic," Howard said.

The bill has been referred to the House Consumer Affairs Committee for consideration.