Changes to Maryland's Senate Bill 41

Effective October 1, 2024, Maryland's Senate Bill 41 introduces important changes to what information consumer reporting agencies can include in credit reports.

Key Changes:

• Increased Thresholds for Adverse Information: The law raises the monetary thresholds that determine when certain negative information can be included in a credit report used for:
  • Credit Transactions: Increased from $50,000 to $150,000.
  • Life Insurance Underwriting: Increased from $50,000 to $150,000.
  • Employment Decisions: Increased from $20,000 to $75,000 annual salary.

What This Means:

• More Limited Reporting of Older Adverse Information: Consumer reporting agencies are generally prohibited from including negative information older than seven years in a credit report. However, exceptions exist for credit transactions, life insurance underwriting, and employment decisions involving higher amounts or salaries. This new law significantly increases those thresholds.
  
  
• Impact on Employment Screening: For positions with an annual salary of $75,000 or more, employers may now be able to access older adverse information (beyond seven years) in credit reports. For positions below this threshold, the seven-year limit remains in effect.
  
  

Key Points to Remember:

• The law applies to consumer reporting agencies. These agencies are responsible for complying with the new requirements.
• The changes are effective October 1, 2024. Credit reports issued on or after this date must reflect the new thresholds.
• The seven-year limit still applies to most adverse information. The exceptions apply only to specific high-value transactions or high-paying jobs.
• Portal Ordering System Update: Our system has been updated to reflect the new $75,000 salary threshold.  If no salary is provided, only 7 years of convictions will be provided.

We recommend reviewing your current practices and policies to ensure compliance with Maryland's updated law.

Disclaimer: This communication provides general information and is not intended as legal advice. If you have specific questions about the new law or its impact, please consult with legal counsel.

If you have any questions, please don't hesitate to reach out to us.