Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2564

Introduced by Assembly Member Nestande

February 21, 2014

An act to amend Section begin delete 1785.10 end delete begin insert 1785.43 end insert of the Civil Code, relating to begin delete consumer end delete begin insert commercial end insert credit reporting.

LEGISLATIVE COUNSEL’S DIGEST

AB 2564, as amended, Nestande. begin delete Consumer end delete begin insert Commercial end insert credit reporting agencies.

begin insert

Existing law authorizes a commercial credit reporting agency to protect the identity of sources of information to be used in commercial credit reports. Existing law requires an agency to furnish a printed copy of a report to the subject of the report, upon request of a representative of the subject, at a cost no greater than the cost usually charged to 3rd parties. Existing law also sets forth a procedure for the correction of inaccuracies in these reports. Existing law defines terms for these purposes.

end insert begin insert

This bill would require an agency to furnish a source of information to the subject of a commercial credit report upon the request of a representative of the subject. The bill would require the printed copy to be provided at no cost to the subject of a report. The bill would prohibit an agency, or a business affiliate of that agency, from assessing a fee upon the subject of a report in connection with ensuring the proper data is contained within the commercial credit report of the subject. The bill would require an agency to endeavor to maintain the most accurate data possible regarding the subject of a report.

end insert begin delete

The Consumer Credit Reporting Agencies Act requires every consumer credit reporting agency, upon request and proper identification of any consumer, to allow the consumer to visually inspect all files maintained regarding that consumer at the time of the request. The act requires every consumer reporting agency, upon contact by a consumer regarding information which may be contained in the agency files regarding that consumer, to inform the consumer of specified rights and agency obligations.

end delete begin delete

This bill would make technical, nonsubstantives changes to those provisions.

end delete

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 1785.43 of the end insert begin insert Civil Code end insert begin insert is amended to
read: end insert

1785.43.  

(a)  begin delete Commercial end delete begin insert A commercial end insert credit reporting
begin delete agencies end delete begin insert agency end insert may protect the identity of begin delete sources end delete begin insert a source end insert of
information to be used in begin insert a end insert commercial credit begin delete reports. end delete begin insert report, but
shall furnish the source of information to the subject of the report
upon the request of a representative of the subject. end insert

(b) Upon the request of a representative of the subject of a
report, the commercial credit reporting agency shall provide one
printed copy of the subject’s commercial credit report in a format
routinely made available to third parties, at begin delete a cost no greater than
the cost usually charged to third parties. end delete begin insert no cost. end insert

(c)  begin delete In the event that end delete begin insert If end insert the subject of a commercial credit report
believes the report contains an inaccurate statement of fact, a
representative of the subject of the begin delete report may, end delete begin insert report, end insert within 30
days of receipt of the report pursuant to subdivision (b), begin insert may end insert file
with the commercial credit reporting agency a written summary
statement of not more than 50 words identifying the particular
statement of fact that is disputed, and indicating the nature of the
disagreement with the statement in the report. Within 30 days of
receipt of a subject’s summary statement of disagreement, the
commercial credit reporting agency shall either delete the disputed
item of information from the report, or include in the report an
indication that the subject’s summary statement of disagreement
will be provided upon request.

begin insert

(d) A commercial credit reporting agency, or a business affiliate
of that agency, shall not assess a fee upon the subject of a report
in connection with ensuring the proper data is contained within
the commercial credit report of the subject.

end insert begin insert

(e) A commercial credit reporting agency shall endeavor to
maintain the most accurate data possible regarding the subject of
a report.

end insert

begin delete

SECTION 1.  

Section 1785.10 of the Civil Code is amended
to read:

1785.10.  

(a) Every consumer credit reporting agency, upon
request and proper identification of any consumer, shall allow the
consumer to visually inspect all files maintained regarding that
consumer at the time of the request.

(b) (1) Every consumer credit reporting agency, upon contact
by a consumer by telephone, mail, or in person regarding
information which may be contained in the agency files regarding
that consumer, shall promptly advise the consumer of his or her
rights under Sections 1785.11.8, 1785.19, and 1785.19.5, and of
the obligation of the agency to provide disclosure of the files in
person, by mail, or by telephone pursuant to Section 1785.15,
including the obligation of the agency to provide a decoded written
version of the file or a written copy of the file with an explanation
of any code, including any credit score used, and the key factors,
as defined in Section 1785.15.1, if the consumer so requests that
copy. The disclosure shall be provided in the manner selected by
the consumer, chosen from among any reasonable means available
to the consumer credit reporting agency.

(2) The agency shall determine the applicability of subdivision
(a) of Section 1785.17 and, where applicable, the agency shall
inform the consumer of the rights under that section.

(c) All information on a consumer in the files of a consumer
credit reporting agency at the time of a request for inspection under
subdivision (a), shall be available for inspection, including the
names, addresses and, if provided by the sources of information,
the telephone numbers identified for customer service for the
sources of information.

(d) (1) The consumer credit reporting agency shall also disclose
the recipients of any consumer credit report on the consumer which
the consumer credit reporting agency has furnished:

(A) For employment purposes within the two-year period
preceding the request.

(B) For any other purpose within the 12-month period preceding
the request.

(2) Disclosure of recipients of consumer credit reports for
purposes of this subdivision shall include the name of the recipient
or, if applicable, the fictitious business name under which the
recipient does business disclosed in full. The identification shall
also include the address and, if provided by the recipient, the
telephone number identified for customer service for the recipient.

(e) The consumer credit reporting agency shall also disclose a
record of all inquiries received by the agency in the 12-month
period preceding the request that identified the consumer in
connection with a credit transaction which is not initiated by the
consumer. This record of inquiries shall include the name, address
and, if provided by the recipient, the telephone number identified
for customer service for each recipient making an inquiry.

(f) Any consumer credit reporting agency when it is subject to
the provisions of Section 1785.22 is exempted from the
requirements of subdivisions (c), (d), and (e), only with regard to
the provision of the address and telephone number.

(g) Any consumer credit reporting agency, that provides a
consumer credit report to another consumer credit reporting agency
that procures the consumer credit report for the purpose of resale
and is subject to Section 1785.22, is exempted from the
requirements of subdivisions (d) and (e), only with regard to the
provision of the address and telephone number regarding each
prospective user to which the consumer credit report was sold.

(h) This section shall become operative on January 1, 2003.

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