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Bill

SB 696

Relating to limitations on the information reported by consumer reporting agencies.

89th Legislature (2025) Introduced by César Blanco and 1 co-sponsor

SB 696 restricts information that consumer credit reporting agencies can report about borrowers, potentially limiting negative credit history visibility to lenders and third parties.

Co-author authorized
#business&commerce--general(i0050) #consumerreportingagencies(s0120) #criminalprocedure--general(i0208) #financial--general(i0365)
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Bill Summary · SB 696

Legislative bill overview

SB 696 restricts what information consumer reporting agencies (credit bureaus) can include in credit reports and related consumer files. The bill aims to limit the reporting of certain negative financial information or potentially expand consumer privacy protections regarding data that credit agencies can collect and distribute to third parties.

Why is this important

Consumer credit reports significantly impact individuals' ability to obtain loans, housing, employment, and insurance. Limitations on reported information could help consumers with past financial difficulties access credit more easily, but could also affect lenders' ability to assess creditworthiness and potentially increase interest rates or reduce credit availability overall.

Potential points of contention

  • Lender concerns: Banks and financial institutions may oppose restrictions that limit their access to historical financial information needed for accurate risk assessment
  • Scope ambiguity: The bill's current description doesn't specify which information types would be restricted (e.g., late payments, collections, bankruptcies), making it unclear how substantially it would reshape credit reporting
  • Economic trade-offs: Restricting negative reporting could help some consumers but may shift risk to lenders, potentially resulting in higher costs or stricter lending standards for all borrowers

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

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