Relating to the responsibility of consumer reporting agencies to ensure compliance with certain consumer reporting laws.
Summary
SB 584 would amend the Texas Business & Commerce Code to place an explicit duty on consumer reporting agencies when they compile a consumer report using information obtained from another consumer reporting agency or from a third party. Under the bill, the receiving agency must ensure that the information is compiled and furnished in a manner that complies with existing consumer reporting law. The measure is aimed at closing a compliance gap in the downstream use of consumer data, rather than creating a new consumer reporting regime.
The bill applies only to consumer reports furnished on or after its effective date, and it would take effect September 1, 2025. In practical terms, it would affect consumer reporting agencies, data furnishers, and entities that rely on consumer reports for credit, housing, employment, or other eligibility decisions by making the agency that republishes the information responsible for compliance with the applicable state requirements.
Impact
SB 584 would amend Section 20.05 of the Business & Commerce Code by adding a new subsection requiring consumer reporting agencies to verify that information obtained from another agency or third party is compiled and furnished in compliance with Texas consumer reporting law. This expands the compliance obligations of consumer reporting agencies and could affect how they source, verify, and republish consumer data. The bill is prospective only and applies to consumer reports furnished on or after September 1, 2025.
Sentiment
The available voting history suggests broad support for the bill, with the Senate passing the relevant action by a 29-2 vote and no committee transcript indicating significant opposition. The absence of recorded committee debate also suggests the measure was viewed as a technical or consumer-protection-oriented clarification rather than a highly controversial policy change.
Contention
The main point of potential contention is the added compliance burden on consumer reporting agencies, especially those that rely on data from other agencies or third parties and may need to implement additional verification procedures. Supporters likely view the bill as strengthening consumer protections and ensuring accountability in the reporting chain, while any opponents would be concerned about operational costs, liability exposure, or duplicative compliance requirements. No specific objections are recorded in the provided materials.
Requires that consumer reporting agencies contact consumers when a request is made for their consumer reports; requires consumer reporting agencies to provide the consumer with information pertaining to the entity that requested the consumer report.
Requires reporting agencies to report to Division of Consumer Affairs number of free consumer reports furnished to New Jersey resident consumers annually.
Requires that consumer reporting agencies contact consumers when a request is made for their consumer reports; requires consumer reporting agencies to provide the consumer with information pertaining to the entity that requested the consumer report.