Tennessee House Bill HB1819

Tennessee 2023-2024 Regular Session

• Introduced: 1/11/24
• Refer: 1/24/24

Caption

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

Impact

The impact of HB1819, if enacted, could significantly affect tenants and consumers who traditionally rely on non-traditional forms of credit or may otherwise have limited access to credit facilities. This bill aims to establish a more inclusive credit scoring mechanism by factoring in rent and utility payments, potentially allowing more individuals to qualify for loans and other financial products that they might not have accessed previously. The inclusion of these payment types could enhance the reliability of consumer credit assessments.

Summary

House Bill 1819 aims to amend several titles within the Tennessee Code Annotated, specifically concerning the field of credit data. The key provision of the bill is that beginning July 1, 2024, consumer reporting agencies are mandated to include payment information related to rent and utilities in consumer reports. This inclusion is intended to provide a more comprehensive view of consumers' financial behavior, particularly benefiting those who may not have traditional credit forms yet make regular payments for rent and utilities.

Contention

While proponents of HB1819 argue that the bill supports consumers by providing a pathway for broader credit access, there may be concerns about the potential implications for landlords and utilities. Some stakeholders worry about the accuracy of the reports, especially if rental and utility payments are misreported or if there are disputes regarding payments, possibly leading to the dread of credit damage. Critics might also raise issues related to privacy and data security, pointing out that adding more data points into consumer reports increases the potential for misuse and breaches.