California Freeze Is Being Heard Today
May 17, 2012
A couple of weeks ago we posted about California SB1384 –a fast moving bill that would expand the definition of a nationwide specialty consumer reporting agency and would require companies fitting that description to place a freeze on consumer files upon request by a consumer.
This bill is scheduled to be heard today, despite the many concerns and issues including those listed here:
• Under California law, consumers already have a right to place a credit freeze with a consumer credit reporting agency. Expanding that to include non-credit consumer information could have significant consequences to employers and consumers.
• Consumers would be able to suspend access to non-credit consumer report information (i.e. his/her criminal history, evictions etc.) thereby denying business (end users of consumer reports) access to information critical in making risk and hiring decisions.
• Freezing access to non-credit consumer reports may restrict or deny access to public information by businesses—even those that already have the consumer’s consent as mandated by the FCRA.
• Before a freeze could be lifted, the business may have already moved on to an applicant whose history could be vetted more immediately.
• 11 states specifically prohibit freezing of non-credit consumer information; several other states specifically exempt non-credit consumer information from their credit freeze legislation.
• Significant consumer protections already exist in California and under the Federal Fair Credit Reporting Act (FCRA) via oversight by the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB).
The bottom line is this– we foresee many unintended consequences that will negatively impact California business owners and consumers if this bill moves forward, unchecked.
If you agree, please contact the California Senators below by phone, email, fax or web form to urge them to oppose this bill.
Sen. Ron Calderon
Phone: (916) 651-4030
Fax: (916) 327-8755
Sen. Lou Correa
Fax: (714) 558-4111
Sen. Ed Hernandez
Phone: (916) 651-4024
Fax: (916) 445-0485
Sen. Ted Lieu
Phone: (916) 651-4028
Fax: (916) 323-6056
Sen. Gloria Negrete McLeod
Phone: (916) 651-4032
Fax: (916) 445-0128
Sen. Alex Padilla
Sen. Curren Price
Phone: (916) 651-4026
Fax: (916) 445-8899
Sen. Michael Rubio
Phone: (661) 395-2620
Fax: (661) 395-2622
Sen. Juan Vargas
Phone: (916) 651-4040
Fax: (916) 327-3522
Sen. Rod Wright
Phone: (916) 651-4025
Fax: (916) 445-3712
Sen. Leland Yee
Phone: (916) 651-4008
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