DAR File No. 32382

Commerce, Consumer Protection

R152-21

Credit Services Organizations Act Rules

FIVE-YEAR NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

DAR File No.: 32382
Filed: 02/17/2009, 02:44
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, Title 13, Chapter 21. The Credit Services Organizations Act Rules provide clarification on some of the mandates and prohibitions set forth 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:

Since these rules were last reviewed, the Division has received no written comments with respect to the rules.

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 disputing an entry in a credit report without both a factual basis and a written statement from the consumer indicating "the entry contains a material error or omission, outdated information, inaccurate information, or unverifiable information." The Credit Services Organizations Act Rules provide guidance to help a credit services organization ensure compliance with the statute. The Credit Services Organizations Act Rules define some terms that the statute does not. The Credit Services Organizations Act Rules provide a safe harbor for credit services organizations with respect to statutory requirements; if a credit services organization avoids fraudulent practices and follows the process outlined in the rules, the credit services organization may rely on those rules as evidence that the organization is in compliance. 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:

Angela Hendricks at the above address, by phone at 801-530-6035, by FAX at 801-538-6001, or by Internet E-mail at ahendricks@utah.gov

Authorized by:

Kevin V Olsen, Director