Committee Recommends Ditching Identification Provisions on Virginia Credit Reporting Bill
A report prepared by an ad hoc committee formed to study a Virginia bill that would affect commercial credit reporting in the state suggested removing some of the legislation's most controversial provisions, including a requirement that commercial credit reporting agencies identify the source of so-called "negative information" to the subject of a report.
The committee, formed within the full Virginia Small Business Commission to study House Bill 2198, presented the report to the full Commission at its meeting this week. After briefly introducing and submitting the report, the Commission urged proponents and opponents of the bill to continue their work on the legislation with the ad hoc committee's report in mind. State Senator and Commission Chair Frank Ruff, Jr. (R) urged the bill's sponsor, Delegate Michael Watson (R), to be prepared to compromise on any final legislation that emerges from the debate over HB 2198.
Recommendations in the ad hoc committee's report indicated a great degree of trust in the commercial credit reporting world's existing self-regulatory format, wherein subject companies can already view their report should they like to, and errors are rare and inaccuracies are quickly addressed. The report also suggested that HB 2198 be more closely revised to resemble a California statute that both guarantees commercial credit reporting agencies the right to protect the identity of their sources of trade credit information and codifies a process by which the subject of a report may dispute information contained within their report.
For more details on HB 2198, check out this story in tomorrow's edition of NACM's eNews, released every Thursday afternoon.
- Jacob Barron, CICP, NACM staff writer