Commercial Credit Reports

Division 3, Part 4, Title 1.61 of the Civil Code deals with commercial credit reports in California.

Section 1785.41 provides that 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.

Section 1785.42 defines the terms “commercial credit report,” “commercial credit reporting agency,” and “subject.”

Section 1785.43 allows commercial credit reporting agencies to protect the identity of sources of information to be used in commercial credit reports. Upon the request of a representative of the subject of a report, the commercial credit reporting agency is required to 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.

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, 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 must 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.

Section 1785.4 declares that any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable.

Title 1.6A of Part 4 of Division 3 deals with investigative consumer reporting agencies. Article 1 contains general provisions.

Section 1786 contains five legislative intent findings and declarations, as well as a legislative purpose statement, and a statement of legislative intent.

Section 1786.1 names this title the Investigative Consumer Reporting Agencies Act.

Section 1786.2 defines the terms “person,” “consumer,” “investigative consumer report,” “investigative consumer reporting agency,” “file,” “employment purposes,” and “medical information.”