DAR File No. 43280

Commerce, Consumer Protection

Rule R152-21

Credit Services Organizations Act Rule

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 43280
Filed: 10/16/2018 01:44:49 PM

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:

This rule is promulgated pursuant to Utah Code Section 13-2-5, which authorizes the Director of the Division of Consumer Protection (Division) to issue rules to administer and enforce enumerated laws, including Section 13-21.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

The Division is unaware of any written comments regarding this rule.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

This rule provides guidance to regulated persons and entities concerning obligations imposed, and conduct prohibited, by Section 13-21-3. The guidance primarily concerns a credit service organization's (CSO) obligations with respect to disputing or challenging entries on a consumer's credit report, and the CSO's obligations with respect to representations it makes to consumers and credit reporting agencies. R152-21-2 supplements the definitions that appear in Section 13-21-2. The supplemental definitions clarify terms used but not defined by statute, and terms used in this rule. The supplemental definitions assist regulated entities in their compliance efforts, and promote consistency in the Division's enforcement efforts by reducing the need to interpret undefined terms. R152-21-3 clarifies the meaning of "factual basis" as the term is used in Section 13-21-3(1)(d). It details the conduct the law requires of a CSO before the CSO disputes or challenges an entry on a consumer's credit report. The additional guidance is designed to reduce the number of inaccurate, false, or otherwise erroneous disputes made to credit reporting agencies. R152-21-4 identifies specific acts that violate Section 13-21-3. Although the identified acts would violate Section 13-21-3 without regard to this rule, the rule removes any question regarding whether the specified acts violate the law, and highlights some of the most common violations of Section 13-21-3. The additional clarity provided by this rule allows regulated persons and entities to more easily conform their conduct to statutory standards. For the foregoing reasons, this rule should continue to be in effect.

The full text of this rule may be inspected, during regular business hours, at the Office 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:

• Daniel Larsen at the above address, by phone at 801-530-6145, by FAX at , or by Internet E-mail at dblarsen@utah.gov

Effective:

10/16/2018

Authorized by:

Daniel O'Bannon, Director