Consumer credit report: sale of property: wildfires.

Assembly Member Calderon's consumer credit protection measure aims to shield California wildfire victims from credit report impacts when selling severely damaged properties in declared emergency areas. The legislation would prohibit consumer credit reporting agencies from including information about property sales in wildfire-affected regions where the Governor has proclaimed a state of emergency on or after January 7, 2025, provided the property sustained damage beyond repair.

The bill modifies the Consumer Credit Reporting Agencies Act by adding wildfire-related property sales to the list of information that must be excluded from consumer credit reports, alongside existing prohibitions on items like medical debt and outdated bankruptcies. Credit providers would be barred from using these property sales as negative factors when evaluating credit applications. The provisions apply only to properties located within officially declared wildfire emergency zones that are deemed irreparable due to fire damage.

These changes would operate within existing regulatory frameworks, requiring credit reporting agencies to update their data collection protocols and creditors to modify their evaluation criteria accordingly. The measure maintains current enforcement mechanisms through the California Department of Financial Protection and Innovation while adding specific protections for consumers impacted by wildfires.