New Jersey Assembly Bill A2254

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Requires reporting agencies to report to Division of Consumer Affairs number of free consumer reports furnished to New Jersey resident consumers annually.

Impact

The enactment of A2254 would result in significant changes to existing regulations governing consumer reporting agencies in New Jersey. By establishing reporting obligations, the bill seeks to create a clearer picture of how many residents utilize their right to free credit reports. Furthermore, it imposes a penalty of $10,000 for non-compliance, thus incentivizing these reporting agencies to adhere rigorously to the new requirements. This regulatory change may also encourage better practices among agencies regarding the distribution of consumer reports and could foster a more proactive approach in educating residents about their access to such reports.

Summary

Assembly Bill A2254, introduced in New Jersey, mandates that all consumer reporting agencies provide an annual report to the Division of Consumer Affairs detailing the number of free consumer reports distributed to New Jersey residents in the preceding year. This reporting requirement aims to enhance transparency regarding the accessibility of consumer reports, specifically those available without charge. The bill emphasizes the need for reporting agencies to track and communicate the number of consumers receiving one or two free reports each year, thereby offering insights into consumer access to vital financial information.

Contention

While the bill is primarily aimed at enhancing consumer rights and access to information, it may face scrutiny or opposition from the consumer reporting industry. Concerns may arise regarding the administrative burden that this additional reporting requirement could place on agencies, especially smaller firms, which might argue that the cost implications of compliance could outweigh the benefits of heightened transparency. Additionally, discussions surrounding privacy and data protection could also emerge, focusing on how consumer information is handled and reported in compliance with the new law.