California Enacts Provisions Regarding Furnishing Consumer Credit Reports on Adverse Action
by: Lee Greenberg
The state of California recently enacted provisions to the Civil Code regarding the furnishing of consumer credit reports following an adverse action in Assembly Bill No. 1091. The legislation becomes effective on January 1, 2014.
Under existing state law, a consumer credit reporting agency is required to allow the consumer to visually inspect all files maintained regarding that consumer upon request. In addition, existing state law grants a consumer the right to request and receive a written copy of the file.
Under the enacted legislation, it is unlawful for a consumer credit reporting agency to prohibit, dissuade or attempt to dissuade, a user of a consumer credit report furnished by the credit reporting agency from providing a copy of the consumer’s credit report to the consumer, upon the consumer’s request, if the user has taken adverse action against the consumer based upon the report.
The bill authorizes the Attorney General, any district attorney or city attorney, or a city prosecutor, to bring a civil action, for a civil penalty not to exceed $5,000, against any credit reporting agency for a violation of these provisions.
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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