Connecticut House Bill HB05274

Connecticut 2011 Regular Session

• Introduced: 1/14/11
• Refer: 1/14/11

Caption

An Act Concerning Consumer Reporting Agencies And The Provision Of Consumer Files To Consumers.

Impact

By requiring consumer reporting agencies to proactively notify consumers about their ability to obtain credit reports, the bill aims to promote greater transparency within the credit reporting system. This additional layer of consumer protection is expected to have a positive impact on individuals who may be unaware of their credit standing or how multiple inquiries can potentially affect their credit scores. Overall, HB05274 seeks to strengthen consumer confidence in the financial system and contribute to more informed financial decisions.

Summary

House Bill 05274 aims to enhance consumer protections concerning the provision of consumer files by consumer reporting agencies. The bill mandates that consumer reporting agencies must inform consumers of their rights to obtain a free copy of their credit report under certain circumstances. Specifically, if a consumer reporting agency receives eight credit inquiries relating to a consumer or if negative information would be added to a consumer's file, the agency is obligated to contact the consumer and provide the necessary information on how to access their credit report free of charge. This measure is intended to protect consumers from potential misinformation and to empower them in understanding their credit status.

Contention

While the bill has garnered support for its potential to offer greater consumer protections, there may be concerns regarding the administrative burden placed on consumer reporting agencies to comply with these requirements. Critics may argue that this could lead to additional costs for these agencies, which could, in turn, be passed on to consumers through increased fees or less competitive service offerings. Nevertheless, supporters contend that the benefits of empowering consumers outweigh these potential downsides.