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Bill

HB 1399

Consumer Protection - Consumer Reporting Agencies - Use of Algorithmic Systems

2026 Regular Session Introduced by Terri Hill

Maryland bill requiring consumer reporting agencies to disclose and validate algorithmic systems used in credit reporting to protect consumers from biased or inaccurate automated decisions.

First Reading Economic Matters
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WeVote Research Nonpartisan
Bill Summary · HB 1399

Legislative bill overview

HB 1399 would regulate how consumer reporting agencies (credit bureaus) use algorithmic systems in generating consumer reports and credit scores. The bill likely imposes transparency, accuracy, and fairness requirements on algorithmic decision-making that affects consumers' financial creditworthiness and access to credit, loans, and other services.

Why is this important

Algorithmic systems increasingly determine who gets credit, at what rates, and on what terms—decisions with enormous real-world consequences for housing, employment, and financial stability. Without oversight, these systems can perpetuate bias, contain errors, lack transparency, and operate without meaningful consumer recourse, making regulation potentially significant for consumer protection and financial equity.

Potential points of contention

  • Industry compliance costs: Consumer reporting agencies may argue that algorithmic transparency and validation requirements increase operational expenses, potentially passed to consumers or lenders
  • Trade secret protection: Companies may resist disclosing proprietary algorithmic methods, claiming competitive harm, while consumer advocates demand transparency to identify bias and errors
  • Scope and enforceability: Debate over which algorithms are covered, what "fairness" means legally, and how Maryland enforces rules against multi-state national agencies with varying compliance obligations

Compiled from official sources — confirm details with the bill’s official record.

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