Maryland Consumer Reporting Information Update
June 6th, 2024 | Chris Christian, Director of Compliance
On May 9, 2024, Maryland Governor Wes Moore signed bill SB41 into law. The new law amends the existing Maryland Commercial Law by raising the exemption thresholds for certain types of transactions where a consumer reporting agency may include information in consumer reports beyond the statutory limits imposed by the Maryland state law. The law is set to become effective October 1, 2024.
Law Amendments
The amendments of the law target three different cases where a consumer reporting agency may report certain types of information, such as judgements, records of arrest, criminal convictions, and other adverse information, beyond the statutory limits of the state law:
- A credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more
- The underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more
- The employment of any individual at an annual salary which equals, or which may reasonably be expected to equal, $75,000 or more
For credit transactions the principal amount was raised from $50,000 to $150,000. For underwriting of life insurance, the face amount was raised from $50,000 to $150,000 and for employment purposes, the annual salary expected was increased from $20,000 to $75,000. These changes now align with the same reporting exemption thresholds within the federal Fair Credit Reporting Act.
Take Aways
Employers that use background screening reports for employment purposes and who have policies in place which rely on the state’s annual salary amount to receive information prohibited from being reported by a consumer reporting agency, should review their screening policies and make any necessary adjustments. Employers should also consult with their legal counsel when considering the impact of the law and updating their background screening and hiring policies and programs.
The Information contained herein is for informational purposes only. Sterling is not a law firm, and none of the information contained in this notice is intended as legal advice. Clients are encouraged to consult with their legal counsel about the impacts of any requirements. This and other important legislative updates can be found on the Sterling website: https://www.sterlingcheck.com/resources/compliance-updates/
Sterling is not a law firm. This publication is for informational purposes only and nothing contained in it should be construed as legal advice. We expressly disclaim any warranty or responsibility for damages arising out this information. We encourage you to consult with legal counsel regarding your specific needs. We do not undertake any duty to update previously posted materials.