Standardizing the Credit Scoring System and Transitioning....

Standardizing the Credit Scoring System and Transitioning Personal Credit Management to a Nonprofit Entity

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Presidential Executive Order: Standardizing the Credit Scoring System and Transitioning Personal Credit Management to a Nonprofit Entity

Executive Order No. [XXXX]

Title: Establishing a Uniform Credit Scoring Model and Transitioning Personal Credit Management to a Nonprofit Entity, with Congressional Review for Consumer Protection

By the authority vested in me as President of the United States by the Constitution and the laws of the United States of America, I hereby order as follows:

Section 1. Purpose

The current system of multiple credit scoring models creates confusion and inequities, particularly for low-income individuals and small business owners. This Executive Order establishes a single, standardized credit scoring model for personal credit that will be uniformly used across all sectors. It also directs the establishment of a nonprofit entity to manage personal credit reporting and scoring, ensuring that the system prioritizes public welfare over profit. The nonprofit entity will be fully funded by the federal government , with no external funding permitted. After five years, the public will review the nonprofit’s operation and decide whether to continue with this system. During this review period, only the public will have the authority to make changes , and those changes must prioritize the benefit of the public while taking into account the long-term growth and sustainability of corporations, banks, and lenders.

Additionally, commercial credit will remain separate from personal credit at this time, but a future executive order will address transitioning commercial credit to a similar nonprofit structure. This future process will involve a public discussion on policy changes that promote small business growth, independent of personal credit.

Section 2. Policy

It is the policy of the United States to:

- Establish a single, standardized credit scoring model for personal credit across all sectors.

- Transition the management of personal credit from private credit bureaus to a federally funded nonprofit entity .

- Ensure the nonprofit provides 24/7 free access to personal credit data for consumers.

- Prevent the nonprofit entity from accepting any outside funding, ensuring its independence from private financial interests.

- Conduct a public review after five years to allow citizens to vote on whether to continue with the nonprofit credit system.

- During the five-year review period, only the public will have the authority to propose and approve changes to the nonprofit system. These changes must benefit the public but also take into account the long-term growth of financial institutions such as corporations, banks, and lenders.

- Prohibit the nonprofit from disclosing, selling, or publicly displaying personal credit information. The nonprofit is only permitted to hold financial data to assess creditworthiness for banks and lenders, ensuring privacy and protection of consumer information.

- Mandate that commercial credit will be addressed separately in a future executive order, with a focus on public discussion to promote policies that support small business growth independent of personal credit history.

Section 3. Establishment of the National Credit Task Force for Personal Credit

(a) National Credit Task Force : A task force shall be created within 30 days of this order to oversee the transition of the personal credit scoring system to a nonprofit model. The task force will consist of representatives from:

- The Consumer Financial Protection Bureau (CFPB)

- The Federal Trade Commission (FTC)

- The Department of the Treasury

- Nonprofit sector leaders

- Consumer advocacy groups

- Financial industry experts

(b) Duties of the Task Force :

- Within 90 days, the task force will identify a nonprofit entity capable of managing the entire personal credit system.

- The task force will design the framework for transferring personal credit reporting and scoring responsibilities from private credit bureaus to the nonprofit entity.

- The task force will ensure the implementation of the new credit model across all sectors, including mortgage lenders, auto lenders, credit card companies, and financial institutions.

- The task force will collaborate with federal agencies to ensure the nonprofit entity is properly funded and operational during the transition period.

(c) Nonprofit Entity Requirements :

- The nonprofit will be responsible for managing all personal credit data, issuing credit scores, and ensuring consumer protection.

- The nonprofit must provide 24/7 access to credit data for consumers, including free credit reports, scores, and dispute services.

- The nonprofit is prohibited from disclosing, selling, or publicly displaying any personal credit information. It may only use this data to assess and display creditworthiness to banks, lenders, and other financial institutions. Consumers’ data will be fully protected, and only used for the purpose of determining their eligibility for credit.

- The nonprofit must be fully transparent in its operations, including publicly accessible reports on its credit scoring methodology.

- The nonprofit must be fully funded by the federal government , with no consumer fees or reliance on for-profit models.

Section 4. Establishment of a Single, Uniform Personal Credit Model

(a) Uniform Credit Model : All sectors will adopt a single, transparent credit scoring model for personal credit. This model must:

- Consider a wide range of credit behavior, including non-traditional data such as timely rent and utility payments.

- Be designed to reduce the punitive effects of factors like high credit utilization and temporary financial hardship.

(b) Implementation : The credit scoring model must be fully adopted by all sectors within 180 days of this order. The National Credit Task Force will monitor and enforce compliance.

Section 5. Public Review and Empowerment

(a) Five-Year Public Review : After five years, a national public review will be conducted to evaluate the effectiveness of the nonprofit credit system.

- A public referendum will be held to determine whether the nonprofit should continue indefinitely or be modified based on public feedback.

- During the five-year review period, only the public will have the authority to propose and approve changes to the nonprofit credit system. These changes must be made in the interest of benefiting the public, but must also consider the long-term growth and stability of corporations, banks, lenders, and other financial institutions. This ensures that the public’s needs are prioritized while maintaining a healthy financial ecosystem.

(b) Protection from Government Interference : No government official or Congress will have the authority to alter or abolish the nonprofit personal credit system, except through the public referendum.

Section 6. Congressional Review to Criminalize External Funding of the Nonprofit

(a) Felony Provisions for External Funding : Within 90 days of this Executive Order, Congress shall review and enact legislation making it a felony for the nonprofit to accept funding from any outside source other than federally allocated funds.

- This provision ensures that the nonprofit remains free from private financial influence and operates solely in the public’s interest.

- Violations will result in criminal prosecution and potential revocation of nonprofit status.

(b) Oversight of Funding Sources : The FTC and the Department of Justice will monitor the nonprofit’s funding to ensure compliance.

Section 7. Protections for Consumers

(a) Protections Against Discrimination : The nonprofit personal credit system will prohibit any form of discrimination based on race, gender, socioeconomic status, location, or criminal records.

(b) Support for Small Business Owners : Small business owners who use personal credit for business purposes will be shielded from credit score penalties. Alternative credit assessments will be developed to provide fair access to credit.

(c) Low-Income Consumer Protections : The nonprofit will implement policies to protect low-income consumers and provide credit-building programs.

Section 8. Reporting and Transparency

(a) Annual Reports : The nonprofit will publish annual reports detailing the number of credit reports issued, consumer disputes, and its overall impact on financial inclusivity.

(b) Public Engagement : The nonprofit will hold quarterly public forums to engage consumers and ensure the system meets public needs.

(c) 24/7 Free Access to Personal Credit Data : The nonprofit will ensure that all consumers have free access to their credit data at any time.

Section 9. Funding

(a) Funding Allocation : The nonprofit will be fully funded by the federal government , with sufficient federal funds allocated for operational costs, implementation, and public education programs.

(b) No Consumer Fees : The nonprofit will operate without charging consumers for credit reports, scores, or dispute services.

Section 10. General Provisions

(a) Nothing in this order shall be construed to impair or otherwise affect:

- (i) The authority granted by law to an executive department or agency, or the head thereof;

- (ii) The functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

Future Executive Order for Commercial Credit

A future executive order will transition commercial credit to a nonprofit entity under similar terms. A public discussion will be mandated to ensure that commercial credit policies promote the growth of small businesses, independent of personal credit history .

Signed: Vincent Dean Cordova, Jr.

Date : YOU DECIDE