Tennessee Senate Bill SB1684

Tennessee 2023-2024 Regular Session

• Introduced: 1/9/24
• Failed: 2/27/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 13; Title 45; Title 47 and Title 66, relative to credit data.

Impact

The introduction of SB1684 is expected to have significant implications for state laws regarding credit reporting and consumer protection. By mandating the inclusion of rent and utility payments in consumer reports, the bill aligns with efforts to expand fair access to credit. The legislation also emphasizes that any violations regarding the new requirements will be treated as violations of the Tennessee Consumer Protection Act, thus empowering consumers and the Attorney General to seek enforcement actions and remedies in cases of non-compliance. This could enhance consumer rights while ensuring that reporting agencies adhere to the new standards.

Summary

Senate Bill 1684 proposes an amendment to the Tennessee Code to require consumer reporting agencies to include reported payments of rent and utilities in consumer reports starting from July 1, 2024. This change aims to enhance credit scoring accuracy, potentially allowing tenants who pay their rent and utilities on time to build their credit history more effectively. By recognizing these payments, the bill seeks to improve access to credit, particularly for individuals who may have previously struggled due to a lack of diverse credit data. Additionally, it establishes a dispute process for consumers if their consumer reports do not accurately reflect this information.

Sentiment

The general sentiment surrounding SB1684 appears to be positive, particularly among consumer advocacy groups and tenants who would benefit from an expanded opportunity to build credit. Proponents argue that timely rent and utility payments are a critical aspect of financial responsibility that should be recognized in credit evaluations. However, some skepticism may exist regarding how effectively these changes will be implemented and enforced by consumer reporting agencies. Critics may raise concerns about the potential for inaccuracies in reporting, which could negatively impact consumers if not managed properly.

Contention

Notable points of contention surrounding SB1684 may involve debates on the responsibilities of consumer reporting agencies and the regulatory measures required to ensure accurate reporting of rent and utility payments. While supporters advocate for broader access to credit for renters, some may question whether the benefits outweigh the potential complications arising from the inclusion of additional data in credit reports. The bill is likely to invoke discussions about the adequacy of consumer protections in relation to credit reporting, as well as the legitimate concerns of those who fear inaccuracies impacting their creditworthiness.