To Amend The Credit Reporting Disclosure Act Of 1989; And To Clarify The Content Required For A Notice Of Adverse Action.
Summary
SB240 amends the Arkansas Credit Reporting Disclosure Act of 1989 to clarify what must be included in a written notice of adverse action. Under the bill, when a creditor takes an adverse action based on a consumer report, the notice must state the action taken, identify the creditor, identify the consumer reporting agency that provided the report, and include the consumer’s Social Security number if that number was supplied by the consumer to the user of the report or appears in the report received from the consumer reporting agency.
The bill is a targeted consumer-credit and disclosure measure rather than a broad overhaul of credit reporting law. It updates Arkansas Code § 4-93-104(a) by adding a specific content requirement for adverse-action notices, which affects creditors, lenders, and other users of consumer reports, as well as consumer reporting agencies and consumers receiving credit denials or other negative decisions.
The voting history suggests the bill was broadly supported and noncontroversial. It passed the Senate 32-0 and the House 96-0, indicating unanimous approval in both chambers. No committee transcript was provided, and there is no indication of organized opposition in the available record.
The main point of potential concern is the added inclusion of a consumer’s Social Security number in the adverse-action notice, but only under limited conditions tied to information already provided by the consumer or contained in the consumer report. That requirement appears intended to improve identification and clarity in notices, while also raising privacy and data-handling considerations for creditors and reporting entities. No specific disagreement is documented in the available materials.
Impact
SB240 changes Arkansas law governing adverse-action notices under the Credit Reporting Disclosure Act of 1989 by expanding the required contents of those notices. It amends Arkansas Code § 4-93-104(a) to require written notice of the action taken, the creditor’s name and address, the consumer reporting agency’s name and address, and, in specified circumstances, the consumer’s Social Security number. The practical effect is to impose a clearer disclosure standard on creditors and other users of consumer reports when they deny credit or otherwise take adverse action based on a credit report.
Sentiment
The available voting record shows strong bipartisan support and no recorded opposition, with unanimous passage in both the Senate and House. Because no committee transcripts are available, there is little direct evidence of debate, but the bill’s narrow scope and technical nature suggest it was viewed as a routine clarification to existing credit-reporting notice requirements rather than a controversial policy change.
Contention
No explicit contention is documented in the provided materials. The only issue that could draw concern is the requirement to include a consumer’s Social Security number in an adverse-action notice when that number is already in the creditor’s possession or in the consumer report. Supporters would likely view this as a clarification that improves notice accuracy and consumer identification, while critics might worry about privacy, identity-theft risk, or additional compliance burden for creditors and reporting agencies. However, the unanimous votes indicate that any such concerns did not produce visible opposition in the legislative record provided.