TO AMEND THE CREDIT REPORTING DISCLOSURE ACT OF 1989; AND TO CLARIFY THE CONTENT REQUIRED FOR A NOTICE OF ADVERSE ACTION.

SB 240 amends Arkansas' Credit Reporting Disclosure Act to clarify what must be included in a "notice of adverse action" sent to consumers when a creditor denies credit or takes other negative action. The bill requires such notices to include the consumer's Social Security number, but only if the consumer previously provided it to the creditor or the number is already in the consumer report. This change directly affects consumers receiving credit denials and the creditors/reporting agencies that must send these notices. The law ensures notices provide consistent, necessary information without requiring creditors to obtain new SSNs from consumers. (Arkansas Code § 4-93-104(a), effective as Act 343, 2025)