A federal district court recently addressed a complex issue involving New Jersey’s Fair Credit Reporting Act and its implications for national credit reporting agencies (CRAs). The law, amended in 2019, mandated that CRAs provide credit file disclosures in English, Spanish, and at least 10 other languages upon consumer request.Â
 However, this requirement faced legal challenge from the Consumer Data Industry Association (CDIA), representing major CRAs like Equifax, Experian, and TransUnion. CDIA argued that the state law exceeded federal regulations outlined in the Fair Credit Reporting Act and encroached upon the CRAs’ First Amendment rights regarding commercial speech.Â
The court’s decision, delivered by U.S. District Judge Georgette Castner, was multifaceted. While acknowledging the importance of language accessibility, the court partially sided with CDIA. It found the mandate to offer disclosures in at least 10 additional languages overly burdensome, especially considering evidence suggesting that these languages would serve less than two percent of consumers in the state.Â
Despite agreeing with the state’s intention to reduce consumer confusion and promote financial literacy through translated disclosures, the court ultimately deemed the 10+ language provision unreasonable. As a result, it partially vacated this aspect of the law, allowing CRAs to offer disclosures in English and Spanish only, as required by the federal law.Â
This decision highlights the intricate balance between consumer protection measures and regulatory compliance, emphasizing the complexities involved in ensuring fair access to financial information for diverse linguistic communities.Â
Author:Â Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clientsâ criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jenniferâs guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance.
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