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TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT
CHAPTER 3.5. OBLIGATIONS OF FURNISHERS OF CREDIT INFORMATION
California Civil Code Section 1785.25-1785.26




1785.25.  (a) A person shall not furnish information on a specific
transaction or experience to any consumer credit reporting agency if
the person knows or should know the information is incomplete or
inaccurate.
   (b) A person who (1) in the ordinary course of business regularly
and on a routine basis furnishes information to one or more consumer
credit reporting agencies about the person's own transactions or
experiences with one or more consumers and (2) determines that
information on a specific transaction or experience so provided to a
consumer credit reporting agency is not complete or accurate, shall
promptly notify the consumer credit reporting agency of that
determination and provide to the consumer credit reporting agency any
corrections to that information, or any additional information, that
is necessary to make the information provided by the person to the
consumer credit reporting agency complete and accurate.
   (c) So long as the completeness or accuracy of any information on
a specific transaction or experience furnished by any person to a
consumer credit reporting agency is subject to a continuing dispute
between the affected consumer and that person, the person may not
furnish the information to any consumer credit reporting agency
without also including a notice that the information is disputed by
the consumer.
   (d) A person who regularly furnishes information to a consumer
credit reporting agency regarding a consumer who has an open-end
credit account with that person, and which is closed by the consumer,
shall notify the consumer credit reporting agency of the closure of
that account by the consumer, in the information regularly furnished
for the period in which the account is closed.
   (e) A person who places a delinquent account for collection
(internally or by referral to a third party), charges the delinquent
account to profit or loss, or takes similar action, and subsequently
furnishes information to a credit reporting agency regarding that
action, shall include within the information furnished the
approximate commencement date of the delinquency which gave rise to
that action, unless that date was previously reported to the credit
reporting agency.  Nothing in this provision shall require that a
delinquency must be reported to a credit reporting agency.
   (f) Upon receiving notice of a dispute noticed pursuant to
subdivision (a) of Section 1785.16 with regard to the completeness or
accuracy of any information provided to a consumer credit reporting
agency, the person that provided the information shall (1) complete
an investigation with respect to the disputed information and report
to the consumer credit reporting agency the results of that
investigation before the end of the 30-business-day period beginning
on the date the consumer credit reporting agency receives the notice
of dispute from the consumer in accordance with subdivision (a) of
Section 1785.16 and (2) review relevant information submitted to it.

   (g) A person who furnishes information to a consumer credit
reporting agency is liable for failure to comply with this section,
unless the furnisher establishes by a preponderance of the evidence
that, at the time of the failure to comply with this section, the
furnisher maintained reasonable procedures to comply with those
provisions.


1785.26.  (a) As used in this section:
   (1) "Creditor" includes an agent or assignee of a creditor,
including an agent engaged in administering or collecting the
creditor's accounts.
   (2) "Negative credit information" means information concerning the
credit history of a consumer that, because of the consumer's past
delinquencies, late or irregular payment history, insolvency, or any
form of default, would reasonably be expected to affect adversely the
consumer's ability to obtain or maintain credit.  "Negative credit
information" does not include information or credit histories arising
from a nonconsumer transaction or any other credit transaction
outside the scope of this title, nor does it include inquiries about
a consumer's credit record.
   (b) A creditor may submit negative credit information concerning a
consumer to a consumer credit reporting agency, only if the creditor
notifies the consumer affected.  After providing this notice, a
creditor may submit additional information to a credit reporting
agency respecting the same transaction or extension of credit that
gave rise to the original negative credit information without
providing additional notice.
   (c) The notice shall be in writing and shall be delivered in
person or mailed first class, postage prepaid, to the party's last
known address, prior to or within 30 days after the transmission of
the negative credit information.
   (1) The notice may be part of any notice of default, billing
statement, or other correspondence, and may be included as preprinted
or standard form language in any of these from the creditor to the
consumer.
   (2) The notice is sufficient if it is in substantially the
following form:
   "As required by law, you are hereby notified that a negative
credit report reflecting on your credit record may be submitted to a
credit reporting agency if you fail to fulfill the terms of your
credit obligations."
   (3) The notice may, in the creditor's discretion, be more specific
than the form given in paragraph (2).  The notice may include, but
shall not be limited to, particular information regarding an account
or information respecting the approximate date on which the creditor
submitted or intends to submit a negative credit report.
   (4) The giving of notice by a creditor as provided in this
subdivision does not create any requirement for the creditor to
actually submit negative credit information to a consumer credit
reporting agency.  However, this section shall not be construed to
authorize the use of notice as provided in this subdivision in
violation of the federal Fair Debt Collection Practices Act (15
U.S.C., Sec. 1592 et seq.).
   (d) A creditor is liable for failure to provide notice pursuant to
this section, unless the creditor establishes, by a preponderance of
the evidence, that at the time of that failure to give notice the
creditor maintained reasonable procedures to comply with this
section.

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