Tennessee House Bill HB1953

Tennessee 2023-2024 Regular Session

• Introduced: 1/23/24
• Refer: 1/25/24

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

By enacting HB1953, the law would alter the legal framework governing the operation of consumer reporting agencies within Tennessee. Specifically, it would prohibit the inclusion of specific adverse information beyond the established seven-year limit unless exceptions apply, such as underwriting life insurance over $250,000 or mandated employment screenings. Additionally, violations would be treated under the Tennessee Consumer Protection Act of 1977, giving the Attorney General enforcement authority. This shift indicates a move towards a more consumer-friendly approach in managing credit reporting, which can impact both consumers and businesses relying on such reports for decision-making.

Summary

House Bill 1953 is designed to amend various sections of the Tennessee Code Annotated related to consumer reporting agencies. The bill introduces a key provision that limits the timeframe for which certain adverse information can appear on consumer reports to seven years, including bankruptcies, unsatisfied judgments, and other negative financial histories. The emphasis on restricting outdated information aims to help consumers maintain better credit ratings and protect their access to financial services over time. As a significant regulatory reform, the bill reflects an intent to enhance consumer protections in the state's financial landscape.

Sentiment

The overall sentiment around HB1953 appears to be cautiously optimistic, especially among consumer advocacy groups who see the potential for improving credit access and maintaining fair reporting standards. There is a general acknowledgment that outdated information can unfairly impede consumers' financial opportunities. However, there remains a degree of concern among some business entities and employers who rely on comprehensive consumer reports to assess risk. The tension between enhancing consumer protection and maintaining thorough screening processes is a notable aspect of the ongoing dialogue surrounding the bill.

Contention

While there is broad support for the intent of the bill, points of contention have emerged regarding the implications of limiting reporting timelines. Critics have raised concerns about the potential adverse effects on risk assessment for businesses, especially regarding employment screenings where a comprehensive view of an applicant’s history is deemed crucial. Moreover, the exceptions outlined for life insurance and certain employment situations exacerbate debates about fairness and accountability in reporting practices. These discussions underscore the delicate balance between consumer rights and the needs of businesses in the realm of financial reporting.