Maryland updates prohibited items reported on consumer credit reports

State Issues Maryland Credit Report Consumer Reporting Agency Debt Collection

On May 9, the Governor of Maryland approved SB 41 (the “Act”) which will change the requirements on prohibitions for consumer reporting agencies as to what information they may include in consumer credit reports.

The Act will prohibit consumer reporting agencies from reporting bankruptcies more than 10 years before the credit report would be issued, suits and judgments of more than seven years, paid tax liens greater than seven years, accounts placed for collection of more than seven years, arrest records or other crime reports of greater than seven years, and “any other adverse information that predates the report” by more than seven years. These reporting prohibitions do not apply to credit transactions with a principal amount of at least $150,000, as well as both the underwriting of life insurance with a face value of at least $150,000 or the employment of someone with a salary of at least $75,000. The Act will go into effect on October 1.