While existing law allows California consumers to place security freezes on their credit files maintained by the three major credit reporting agencies: Equifax, Experian, and TransUnion, new legislation – Senate Bill 1384 (SB 1384) ‘Consumer Reporting Agencies Act’ – would authorize consumers to place similar security freezes on certain other consumer reports containing private financial information. SB 1384 defines a “nationwide specialty consumer reporting agency” and “consumer file” for purposes of California law and if passed, would amend several sections of the Civil Code relating to consumer information privacy. The bill could potentially include background screening firms that maintain ongoing databases of past employment history of job applicants. “The plain language of the bill does not appear to directly impact background screening firms that work directly with employers and only gather employment information on an applicant when a request for a background checks made,” according to background check expert Lester Rosen. “However, there can be an impact if a consumer freezes their past employment history file, which could potentially delay obtaining that information.”

Read more

Posted Under: Legal Issues

Post By (955 Posts)