AB 1427: Consumer credit report: sale of property: natural disasters.

Existing law, the Consumer Credit Reporting Agencies Act, defines and regulates consumer credit reports and consumer credit reporting agencies. The act prohibits a consumer credit reporting agency from making any consumer credit report containing specified items of information, including information about medical debt, as defined. Existing law prohibits a person who uses a consumer credit report in connection with a credit transaction from using medical debt listed on the report as a negative factor when making a credit decision.

This bill would prohibit a consumer credit reporting agency from making a consumer credit report containing information about the sale of property that is located in an area where the Governor has proclaimed a state of emergency due to a wildfire on or after January 7, 2025, natural disaster and the property is damaged beyond repair rendered uninhabitable as a result of the wildfire. natural disaster. The bill would prohibit a person who uses a consumer credit report in connection with a credit transaction from using the sale of an aforementioned property listed on the report as a negative factor when making a credit decision.