Consumer credit reporting is subject to the regulations of the Consumer Credit Reporting Agencies Act. Commercial credit reports, which differ significantly, are not subject to that act. The circumstances, business practices, and reports themselves differ sufficiently to make it impractical to include commercial credit reports under the Consumer Credit Reporting Agencies Act.
Obligations Arising From Particular TransactionsCommercial Credit Reports
Section § 1785.41
This law explains that only consumer credit reports are regulated under a specific act, while commercial credit reports are not. The differences in how consumer and commercial credit reports are used and prepared make it impractical to apply the same rules to both.
consumer credit commercial credit reports Consumer Credit Reporting Agencies Act
Section § 1785.42
This law section defines what a 'commercial credit report' is, which involves financial information about a business shared for legitimate business purposes, excluding certain types of reports like those related to personal credit, insurance underwriting, or internal business experiences. It also explains that a 'commercial credit reporting agency' is any entity that provides these reports in exchange for payment. Lastly, the 'subject' refers to the business being reported on.
(a)CA Civil Law Code § 1785.42(a) “Commercial credit report” means any report provided to a commercial enterprise for a legitimate business purpose, relating to the financial status or payment habits of a commercial enterprise which is the subject of the report. It does not include a report subject to Title 1.6 (commencing with Section 1785.1), Title 1.6A (commencing with Section 1786), or a report prepared for commercial insurance underwriting, claims, or auditing purposes.
The term does not include (1) any report
containing information related to transactions or experiences between the subject and the person making the report; (2) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device; or (3) any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to the subject conveys its decision with respect to that request.
(b)CA Civil Law Code § 1785.42(b) “Commercial credit reporting agency” means any person who, for monetary fees, dues, or on a cooperative nonprofit basis, provides commercial credit reports to third parties.
(c)CA Civil Law Code § 1785.42(c) “Subject” means the commercial enterprise about which a commercial credit report has been compiled.
commercial credit report business financial status payment habits
Section § 1785.43
This law deals with commercial credit reporting agencies and how they should handle information. Agencies can keep their information sources private but must give a copy of a commercial credit report to the report's subject if they ask for it, charging no more than they charge others. If someone finds a mistake in their report, they can submit a short written statement explaining the issue within 30 days. The agency must then either correct the report or include the subject's statement indicating the disagreement in the report.
(a)CA Civil Law Code § 1785.43(a) Commercial credit reporting agencies may protect the identity of sources of information to be used in commercial credit reports.
(b)CA Civil Law Code § 1785.43(b) Upon the request of a representative of the subject of a report, the commercial credit reporting agency shall provide one printed copy of the subject’s commercial credit report in a format routinely made available to third parties, at a cost no greater than the cost usually charged to third parties.
(c)CA Civil Law Code § 1785.43(c) In the event that the subject of a commercial credit report believes the report contains an inaccurate statement of fact, a representative of the subject of the report may, within 30 days of receipt of the report pursuant to subdivision (b), file with the commercial credit reporting agency a written summary statement of not more than 50 words identifying the particular statement of fact that is disputed, and indicating the nature of the disagreement with the statement in the report. Within 30 days of receipt of a subject’s summary statement of disagreement, the commercial credit reporting agency shall either delete the disputed item of information from the report, or include in the report an indication that the subject’s summary statement of disagreement will be provided upon request.
commercial credit report credit reporting agency identity protection
