No. 27238: R152-21. Credit Services Organizations Act Rules

DAR File No.: 27238
Filed: 06/15/2004, 04:04
Received by: NL

 

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Subsection 13-2-5(1) authorizes the Director of the Division of Consumer Protection to issue rules to administer and enforce, inter alia, the Credit Services Organizations Act, Utah Code Title 13, Chapter 21. The Credit Services Organizations Act Rule provides clarification on some of the mandates and prohibitions contained in Section 13-21-3.

 

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

The Division of Consumer Protection has received written comments during the relevant five-year period related to the Credit Services Organizations Act, but none of those comments address the Credit Services Organizations Act Rule.

 

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

The Credit Services Organizations Act prohibits, inter alia, the disputing of an entry in a credit report without both a factual basis and a written statement from the consumer indicating "that the entry contains a material error or omission, outdated information, inaccurate information, or unverifiable information" Subsection 13-21-3(1)(d). The Credit Services Organizations Act Rule provides guidance to help a Credit Services Organization ensure compliance with that statutory requirement. The rule defines some terms that the statute does not, including the terms: challenge, credit report, inaccurate information, material error, material omission, outdated information, and unverifiable information. The rule also provides a safe harbor for a Credit Services Organization with respect to the statutory requirement. If a Credit Services Organization follows the process and avoids the fraudulent practices outlined in the rule, the organization may rely on the rule as evidence that the organization is in compliance with Subsection 13-21-3(1)(d); and, therefore this rule should be continued.

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Consumer Protection
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

 

Direct questions regarding this rule to:

Thad LeVar at the above address, by phone at 801-530-6929, by FAX at 801-530-6001, or by Internet E-mail at [e-mail]

 

Authorized by:

Francine Giani, Director