Plain English Breakdown
The official source lists both 'damaged beyond repair' and 'rendered uninhabitable'; it is unclear if these are alternative conditions or cumulative requirements, so the explanation uses 'damaged beyond repair' as a primary descriptor while noting the condition.
AB-1427: Credit Reports and Property Sales After Wildfires or Natural Disasters
This law stops credit reporting agencies from including information about the sale of a home damaged beyond repair by a wildfire or natural disaster in areas where the Governor has declared a state of emergency.
What This Bill Does
- Prohibits consumer credit reporting agencies from making reports that contain information about the sale of property located in an area with a Governor-proclaimed state of emergency due to a wildfire on or after January 7, 2025, or a natural disaster, if the property is damaged beyond repair.
- Requires lenders and others using consumer credit reports for credit transactions not to use information about these specific property sales as a negative factor when making decisions.
Who It Names or Affects
- Consumer credit reporting agencies that create credit reports.
- Homeowners who sell properties damaged beyond repair by wildfires or natural disasters in areas where the Governor has declared a state of emergency.
- Lenders and other entities using consumer credit reports for credit transactions.
Terms To Know
- Consumer Credit Reporting Agency
- A company regulated by law that creates and sells consumer credit reports containing financial history information.
- State of Emergency
- An official proclamation made by the Governor for an area facing a wildfire or natural disaster.
Limits and Unknowns
- The law only applies to properties damaged beyond repair, not those simply sold due to fear.
- Coverage begins on January 7, 2025; it does not apply to events before this date.
- The text mentions wildfires and natural disasters but does not list every specific type of weather event included under 'natural disaster'.