Repealed and added by Stats. 1975, Ch. 1271.
This act may be referred to as the Consumer Credit Reporting Agencies Act.
Chapter 3 - Requirements on Users of Consumer Credit Reports
California Civil Code — §§ 1785.20-1785.22
Sections (4)
Amended by Stats. 1992, Ch. 1194, Sec. 9. Effective January 1, 1993. Operative July 1, 1993, by Sec. 13 of Ch. 1194.
(a)If any person takes any adverse action with respect to any consumer, and the adverse action is based, in whole or in part, on any information contained in a consumer credit report, that person shall do all of the following:
(1)Provide written notice of the adverse action to the consumer.
(2)Provide the consumer with the name, address, and telephone number of the consumer credit reporting agency which
furnished the report to the person.
(3)Provide a statement that the credit grantor’s decision to take adverse action was based in whole or in part upon information contained in a consumer credit report.
(4)Provide the consumer with a written notice of the following rights of the consumer:
(A)The right of the consumer to obtain within 60 days a free copy of the consumer’s consumer credit report from the consumer credit reporting agency identified pursuant to paragraph (2) and from any other consumer credit reporting agency which compiles and maintains files on consumers on a nationwide basis.
(B)The right of the consumer under Section 1785.16 to dispute the accuracy or completeness of any information in a consumer credit report furnished by the
consumer credit reporting agency.
(b)Whenever credit or insurance for personal, family, or household purposes involving a consumer is denied or the charge for such credit is increased either wholly or in part because of information obtained from a person other than a consumer credit reporting agency bearing upon consumer’s credit worthiness or credit standing, the user of that information shall, within a reasonable period of time, and upon the consumer’s written request for the reasons for that adverse action received within 60 days after learning of the adverse action, disclose the nature and substance of the information to the consumer. The user of the information shall clearly and accurately disclose to the consumer his or her right to make such a written request at the time the adverse action is communicated to the consumer.
(c)No person shall be held liable for any
violation of this section if he or she shows by a preponderance of the evidence that at the time of the alleged violation he or she maintained reasonable procedures to assure compliance with this section.
(d)Nothing in this chapter shall excuse compliance with the requirements of Section 1787.2.
Added by Stats. 1976, Ch. 666.
(a)A user in its discretion may notify the consumer that upon request the user may contact the consumer reporting agency and request that the consumer reporting agency investigate the current status of an item or items of information contained in the consumer report if the consumer disputes the completeness or accuracy of an item or items of information as provided to the user.
(b)The consumer credit reporting agency may require identification from the user to insure the validity of the request and, in that regard, may require that the request be put in writing with proper
identification.
(c)In the event that any such request is made and identification given in the form or manner demanded by the consumer credit reporting agency, such agency shall review the file of the consumer and report the current status of the disputed information to the user and the consumer by the most expeditious means possible.
(d)No user who furnishes information pursuant to this section shall be liable to any person for furnishing such information.
Added by Stats. 1992, Ch. 1194, Sec. 10. Effective January 1, 1993. Operative July 1, 1993, by Sec. 13 of Ch. 1194.
(a)A person may not procure a consumer credit report for the purpose of reselling the report or any information therein unless the person discloses to the consumer credit reporting agency which issues the report the identity of the ultimate end user and each permissible purpose for which the report is furnished to the end user of the consumer credit report or information therein.
(b)A person that procures a consumer credit report for the
purpose of reselling the report or any information therein shall do all of the following:
(1)Establish and comply with reasonable procedures designed to ensure that the consumer credit report or information is resold by the person only for a purpose for which the report may be furnished under this title. These procedures shall include all of the following:
(A)Identification of each prospective user of the resold consumer credit report or information.
(B)Certification of each purpose for which the consumer credit report or information will be used.
(C)Certification that the consumer credit report or information will be used for no other purpose.
(2)Before reselling the consumer credit
report or information, the person shall make reasonable efforts to verify the identities and certifications made under paragraph (1).