AN ACT to amend Tennessee Code Annotated, Title 8; Title 9, Chapter 8; Title 10, Chapter 7; Title 16; Title 18; Title 20; Title 21; Title 27; Title 28; Title 29; Title 45; Title 47; Title 50, Chapter 6 and Title 66, relative to credit data.
The proposed amendments directly affect consumers' rights and the practices of consumer reporting agencies within Tennessee. By ensuring that civil action records do not appear on consumer reports, the bill is expected to provide relief to individuals who may face adverse consequences from such records, such as difficulties securing loans or other credit options. Furthermore, it empowers the Tennessee Attorney General to enforce the provisions of the bill, granting them authority to investigate and address violations, thereby supporting consumer rights more effectively.
House Bill 542 seeks to amend various sections of the Tennessee Code Annotated concerning credit data and consumer reporting. Specifically, it introduces regulations that prohibit consumer reporting agencies from including civil action records in consumer reports filed within the state, effective July 1, 2023. This change aims to enhance consumer protections by limiting the negative impact of civil action records on individuals' credit reports, thereby potentially improving access to credit for those affected by such actions.
Potential points of contention include concerns from some stakeholders about the implications of removing civil action records from consumer reports. While proponents argue that this will support consumers who have been unfairly impacted by such records, opponents may raise issues regarding the necessity of transparency in credit reporting. Critics might suggest that excluding these records could impede the ability of lenders to assess risk accurately, leading to potential risks in financial lending practices. As such, the bill has the potential to spark debates on the balance between consumer protection and the integrity of credit reporting systems.