Tennessee House Bill HB1838

Tennessee 2023-2024 Regular Session

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

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 impact of HB1838 on state laws includes a significant modification of the existing legal framework governing how consumer reporting agencies manage and furnish reports. The bill emphasizes consumer protection by aligning with the federal Fair Credit Reporting Act while adding specific state-level restrictions concerning the duration of adverse information. This modification will likely influence the practices of creditors and employers in conducting background checks, potentially resulting in a more favorable environment for individuals seeking loans or employment opportunities despite past financial issues.

Summary

House Bill 1838 aims to amend several sections of the Tennessee Code Annotated focusing on consumer reporting agencies and consumer reports. The bill provisions provide strict guidelines on the types of information that can be included in consumer reports, particularly limiting the inclusion of negative information such as bankruptcies, certain types of judgments, and arrest records to no more than seven years. This legislative change is designed to enhance consumer privacy and facilitate better access to credit for individuals with past financial difficulties, thereby promoting a more equitable financial system in Tennessee.

Sentiment

The sentiment surrounding HB1838 appears to be largely positive among consumer advocacy groups who support its aim to create more favorable conditions for individuals affected by past credit issues. Supporters argue that the bill will help remove barriers to economic participation for many Tennesseans. However, there may be opposing views from some sectors of the business community, particularly employers concerned about potential limitations in their ability to assess an applicant's complete credit history when making hiring decisions. The balance between consumer privacy and employer needs is likely to be a key point of discussion as the bill advances.

Contention

One notable point of contention regarding HB1838 relates to its implications for employment background checks. While the bill offers significant protections for consumers, critics argue that limiting the availability of certain negative information could hinder employers from making fully informed hiring decisions. Employers who are required to comply with specific regulations might contend that the bill could lead them to miss essential details about a candidate's financial responsibility. This tension between protecting consumer rights and ensuring employers have access to pertinent information is a critical aspect of the ongoing debate surrounding the bill.