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AB-1691 Consumer credit reports: consumer credit reporting agencies.(2017-2018)

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Date Published: 03/17/2017 04:00 AM
AB1691:v98#DOCUMENT

Amended  IN  Assembly  March 16, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1691


Introduced by Committee on Judiciary (Assembly Members Mark Stone (Chair), Chau, Chiu, Cristina Garcia, Holden, Kalra, Reyes, and Ting)

February 27, 2017


An act to amend Section 1786.18 1785.13 of the Civil Code, relating to consumers.


LEGISLATIVE COUNSEL'S DIGEST


AB 1691, as amended, Committee on Judiciary. Consumer credit reports: investigative consumer credit reporting agencies.

Existing law, except under certain circumstances, prohibits an investigative consumer reporting agency from making or furnishing an investigative consumer report that contains specified information, including, among other things, unlawful detainer actions where the defendant was the prevailing party or where the action is resolved by settlement agreement.

Existing law prohibits a consumer credit reporting agency from making a consumer credit report that contains specified information, including, among other things, unlawful detainer actions unless the lessor was the prevailing party, as specified.
This bill would eliminate the prohibition pertaining to unlawful detainer actions. The bill also would make technical and conforming changes.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1785.13 of the Civil Code is amended to read:

1785.13.
 (a) No consumer credit reporting agency shall make any consumer credit report containing any of the following items of information:
(1) Bankruptcies that, from the date of the order for relief, antedate the report by more than 10 years.
(2) Suits and judgments that, from the date of entry or renewal, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.

(3)Unlawful detainer actions, unless the lessor was the prevailing party. For purposes of this paragraph, the lessor shall be deemed to be the prevailing party only if (A) final judgment was awarded to the lessor (i) upon entry of the tenant’s default, (ii) upon the granting of the lessor’s motion for summary judgment, or (iii) following trial, or (B) the action was resolved by a written settlement agreement between the parties that states that the unlawful detainer action may be reported. In any other instance in which the action is resolved by settlement agreement, the lessor shall not be deemed to be the prevailing party for purposes of this paragraph.

(4)

(3) Paid tax liens that, from the date of payment, antedate the report by more than seven years.

(5)

(4) Accounts placed for collection or charged to profit and loss that antedate the report by more than seven years.

(6)

(5) Records of arrest, indictment, information, misdemeanor complaint, or conviction of a crime that, from the date of disposition, release, or parole, antedate the report by more than seven years. These items of information shall no longer be reported if at any time it is learned that in the case of a conviction a full pardon has been granted, or in the case of an arrest, indictment, information, or misdemeanor complaint a conviction did not result.

(7)

(6) Any other adverse information that antedates the report by more than seven years.
(b) The seven-year period specified in paragraphs (5) and (7) (4) and (6) of subdivision (a) shall commence to run, with respect to any account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency that immediately preceded the collection activity, charge to profit and loss, or similar action. Where more than one of these actions is taken with respect to a particular account, the seven-year period specified in paragraphs (5) and (7) (4) and (6) shall commence concurrently for all these actions on the date of the first of these actions.
(c) Any consumer credit reporting agency that furnishes a consumer credit report containing information regarding any case involving a consumer arising under the bankruptcy provisions of Title 11 of the United States Code shall include an identification of the chapter of Title 11 of the United States Code under which the case arose if that can be ascertained from what was provided to the consumer credit reporting agency by the source of the information.
(d) A consumer credit report shall not include any adverse information concerning a consumer antedating the report by more than 10 years or that otherwise is prohibited from being included in a consumer credit report.
(e) If a consumer credit reporting agency is notified by a furnisher of credit information that an open-end credit account of the consumer has been closed by the consumer, any consumer credit report thereafter issued by the consumer credit reporting agency with respect to that consumer, and that includes information respecting that account, shall indicate the fact that the consumer has closed the account. For purposes of this subdivision, “open-end credit account” does not include any demand deposit account, such as a checking account, money market account, or share draft account.
(f) Consumer credit reporting agencies shall not include medical information in their files on consumers or furnish medical information for employment, insurance, or credit purposes in a consumer credit report without the consent of the consumer.
(g) A consumer credit reporting agency shall include in any consumer credit report information, if any, on the failure of the consumer to pay overdue child or spousal support, where the information either was provided to the consumer credit reporting agency pursuant to Section 4752 Section 4701 of the Family Code or has been provided to the consumer credit reporting agency and verified by another federal, state, or local governmental agency.

SECTION 1.Section 1786.18 of the Civil Code is amended to read:
1786.18.

(a)Except as authorized under subdivision (b), an investigative consumer reporting agency may not make or furnish any investigative consumer report containing any of the following items of information:

(1)Bankruptcies that, from the date of the order for relief, antedate the report by more than 10 years.

(2)Suits that, from the date of filing, and satisfied judgments that, from the date of entry, antedate the report by more than seven years.

(3)Unsatisfied judgments that, from the date of entry, antedate the report by more than seven years.

(4)Paid tax liens that, from the date of payment, antedate the report by more than seven years.

(5)Accounts placed for collection or charged to profit and loss that antedate the report by more than seven years.

(6)Records of arrest, indictment, information, misdemeanor complaint, or conviction of a crime that, from the date of disposition, release, or parole, antedate the report by more than seven years. These items of information shall no longer be reported if at any time it is learned that, in the case of a conviction, a full pardon has been granted or, in the case of an arrest, indictment, information, or misdemeanor complaint, a conviction did not result; except that records of arrest, indictment, information, or misdemeanor complaints may be reported pending pronouncement of judgment on the particular subject matter of those records.

(7)Any other adverse information that antedates the report by more than seven years.

(b)The provisions of subdivision (a) are not applicable in either of the following circumstances:

(1)If the investigative consumer report is to be used in the underwriting of life insurance involving, or that may reasonably be expected to involve, an amount of two hundred fifty thousand dollars ($250,000) or more.

(2)If the investigative consumer report is to be used by an employer who is explicitly required by a governmental regulatory agency to check for records that are prohibited by subdivision (a) when the employer is reviewing a consumer’s qualification for employment.

(c)Except as otherwise provided in Section 1786.28, an investigative consumer reporting agency shall not furnish an investigative consumer report that includes information that is a matter of public record and that relates to an arrest, indictment, conviction, civil judicial action, tax lien, or outstanding judgment, unless the agency has verified the accuracy of the information during the 30-day period ending on the date on which the report is furnished.

(d)An investigative consumer reporting agency shall not prepare or furnish an investigative consumer report on a consumer that contains information that is adverse to the interest of the consumer and that is obtained through a personal interview with a neighbor, friend, or associate of the consumer or with another person with whom the consumer is acquainted or who has knowledge of the item of information, unless either (1) the investigative consumer reporting agency has followed reasonable procedures to obtain confirmation of the information, from an additional source that has independent and direct knowledge of the information, or (2) the person interviewed is the best possible source of the information.