Published: February 2022

Addressing credit issues that arise after transgender and nonbinary consumers change their name

Consumer Action joined over 140 organizations in sending a letter to the “Big Three” credit bureaus (Equifax, Experian and TransUnion) urging them to take needed actions to correct credit report problems for transgender and nonbinary consumers. After a legal name change, many transgender and nonbinary consumers end up with multiple credit files in different names and suffer a loss of credit history and score as a result. Additionally, credit reports “out” trans and nonbinary people to landlords, employers and lenders when they apply for loans, jobs and housing because the report still includes their deadname.

Transgender and nonbinary consumers face myriad credit reporting problems after they change their names, resulting in serious consequences for their financial and personal lives. Many consumers report that their credit report fragments into two or more unconnected files upon their name change. Others report that their name change and any credit actions that follow are never reflected in their report at all. Some consumers then find that their credit scores drop by hundreds of points, precluding them from accessing banking services, mortgages, auto financing, employment and rental housing. 

To meaningfully address these problems, the credit reporting industry should take the recommended steps, including utilizing consumers’ full nine-digit Social Security numbers to ensure credit information is associated with the correct credit file; having clear procedures to update a consumer’s name on their credit report when presented with a legal name change order, and ensure that staff are sufficiently trained in those procedures; and preventing the disclosure of transgender and nonbinary consumers’ deadnames to landlords, employers and underwriters by disclosing only a consumer’s current legal name in reports provided to credit report users.

Lead Organization

Equity California

Other Organizations

A Better Balance | Ace and Aro Alliance of Central Ohio | Affirmations Community Center | AIDS Alabama | All Under One Roof LGBT Advocates of Southeastern Idaho | American Civil Liberties Union | Americans for Financial Reform Education Fund | Athlete Ally | The Atlanta Pride Committee, Inc | Bayard Rustin Center for Social Justice | Bergen County LGBTQ+ Alliance | Bet Tzedek Legal Services | BiNet USA | Bradbury-Sullivan LGBT Community Center | Brooklyn Community Pride Center | California Employment Lawyers Association (CELA) | California Reinvestment Coalition | Campus Pride | Center for LGBTQ Economic Advancement & Research (CLEAR) | Center for Responsible Lending | CenterLink: The Community of LGBT Centers | Colors+ Youth Center | Community Legal Services in East Palo Alto | Compass LGBTQ Community Center | Connecticut Gay & Lesbian Chamber | Consumer Action | Consumer Reports | Consumer Federation of America | Daylight | Eastern PA Trans Equity Project | Empire Justice Center | Equality California | Equality Federation | Equality Nevada | Equality Ohio | Equality Texas | Equal Rights Advocates | Equitas Health | Family Equality | FORGE, Inc. | Four Corners Rainbow Youth Center| FreeState Justice, | Maryland’s LGBTQ Advocates | GLAAD | GLBTQ Legal Advocates & Defenders (GLAD) | GLMA: Health Professional Advancing LGBTQ Equality | GLSEN | Golden Gate Business Association | Greater Dayton LGBT Center | Greater Houston LGBT Chamber of Commerce | Henderson Equality Center | Hetrick-Martin Institute | Hispanic Federation | Housing and Economic Rights Advocates | Hudson Pride Center | Hugh Lane Wellness Foundation | Human Rights Campaign | Independence Business Alliance | interACT: Advocates for Intersex Youth | Lambda Legal | Lancaster LGBTQ+ Coalition | Legal Aid at Work | Legal Aid Service of Broward County, Inc. | LGBT Center of SE Wisconsin | LGBT Community Center Of Greater Cleveland | LGBTQ Center of Bay County Inc. | LGBTQ Community Center of Southern Nevada | The LOFT LGBTQ+ Community Center | Los Angeles LGBTQ Chamber of Commerce | Louisville Pride Foundation | Mazzoni Center | Miami Dade Gay and Lesbian Chamber of Commerce | Mid-America LGBT Chamber of Commerce | Minority Veterans of America | Modern Military Association | Montrose Center | Movement Advancement Project (MAP) | Naper Pride | National Association of Consumer Advocates | National Association of Social Workers | National Black Justice Coalition | National Center for Lesbian Rights | National Center for Transgender Equality | National Community Reinvestment Coalition (NCRC) | National Consumer Law Center (on behalf of its low-income clients) | National Consumers League | National LGBT Chamber of Commerce (NGLCC) | National LGBTQ Task Force | National Women's Law Center | New Mexico Out Business Alliance | North Texas LGBT Chamber of Commerce | Oklahomans for Equality | One In Long Beach, Inc. | Openhouse | OutFront Kalamazoo | OUT Georgia Business Alliance | Out Leadership | PFLAG National | Plexus LGBT & Allied Chamber of Commerce | Power Safe Place Resource Center of Virginia | Pride Center at Equality Park | Pride Community Center | Public Citizen | Public Good Law Center | Public Justice | Public Law Center | QWELL Community Foundation | Rainbow Families | Rebirth Obgyn | Resource Center | Sacramento LGBT Community Center | SAGE | Sam & Devorah Foundation for Trans Youth | San Francisco Office of Transgender Initiatives | San Joaquin Pride Center | SCV Pride Center | Seacoast Outright Shoals Diversity Center | Silver State Equality | Spahr Center | Spectrum Resource Center | Stand with Trans | Stonewall Columbus, Inc | Tampa Bay LGBT Chamber | Texas Appleseed | Three Rivers Business Alliance | Transcend Charlotte, Inc. | TransFamily Support Services | The Transgender District | Transgender Law Center | Transgender Legal Defense & Education Fund | Transgender Michigan | The TransLatin@ Coalition | TransOhio | Tranz Central Coast | The Trevor Project | Tzedek DC | UC Berkeley Center for Consumer Law & Economic Justice | Uptown Gay & Lesbian Alliance (UGLA) | URGE: Unite for Reproductive & Gender Equity | Utah LGBTQ+ Chamber of Commerce | Voices for Progress | West Virginia Gay and Lesbian Community Center | Woodstock Institute | Yale University's Office of LGBTQ Resources

More Information

Click here to read the coalition letter in full.

To learn more, please visit Marketplace.org.

 

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