This bill amends the existing law regarding the responsibilities of individuals reporting adverse information about cosigners on debts. It requires that before any adverse information is reported to a consumer reporting agency, the reporting person must send a notice to the cosigner via first-class mail, informing them that the primary obligor has defaulted on the obligation and that the cosigner is responsible for payment. The cosigner must be given at least 30 days after the notice is sent to respond by either paying the amount due or making satisfactory arrangements. If the cosigner responds appropriately, the reporting of adverse information is prohibited.

Additionally, the bill clarifies the definition of a "collection agency" and outlines specific exclusions for certain entities that engage in collection activities, such as banks and credit unions collecting their own claims. The amendments also include updates to the legal references regarding the Fair Credit Reporting Act, ensuring that the definitions and terms used are current. The enactment of this bill is contingent upon the passage of House Bill No. 4887.

Statutes affected:
House Introduced Bill: 445.272