Tennessee Senate Bill SB1758

Tennessee 2023-2024 Regular Session

• Introduced: 1/12/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 38, Chapter 6; Title 45; Title 47; Title 56 and Title 62, relative to consumer reporting agencies.

Impact

The implications of SB1758 are significant in that it will revise the landscape of consumer reporting in Tennessee. By restricting the reporting period for certain negative financial information, the bill seeks to enhance the fairness of the credit reporting system, making it easier for consumers to obtain credit. However, the bill does allow exceptions where older information may still be included, such as in cases involving life insurance underwriting over a specific amount or when required by regulatory agencies for employment qualifications. This dual approach attempts to maintain a balance between consumer protection and necessary risk assessment.

Summary

Senate Bill 1758 aims to modify existing Tennessee laws regarding consumer reporting agencies. Specifically, it outlines provisions that dictate the type of information that can be included in consumer reports. The bill sets a definitive limit of seven years for the inclusion of various financial and legal matters such as bankruptcies, judgments, and other adverse actions in consumer reports. This change is designed to help consumers move past financial difficulties by limiting the impact of older negative information on their credit profiles and overall financial health.

Contention

There is potential for contention regarding the provisions outlined in SB1758. Advocates for consumer rights likely support the initiative for fostering fairer credit reporting practices, viewing the bill as a step towards financial rehabilitation for individuals with past hardships. Conversely, some may oppose the bill, arguing that removing information could risk financial institutions’ ability to accurately assess the creditworthiness of applicants, leading to higher risks in lending. Such debates highlight the ongoing tension between consumer protection and the interests of financial institutions in assessing risk.

Implementation

If enacted, SB1758 is set to take effect on July 1, 2024. The bill would have broad implications for consumer reporting agencies in Tennessee, giving state regulators, specifically the attorney general, enhanced powers to enforce compliance with the new regulations. Any violations of the bill will be subject to penalties under the Tennessee Consumer Protection Act of 1977, which underscores the importance of accuracy and fairness in consumer financial reports.