Consumer Protection - Consumer Reporting Agencies - Use of Algorithmic Systems

HB 1399 requires credit bureaus and other consumer reporting agencies in Maryland to meet strict standards when using algorithms to evaluate credit data. It mandates that agencies explain algorithmic decisions in plain language (meeting an 8.0 Flesch-Kincaid readability score), maintain public algorithm registries, and achieve error rates below 0.5% and discriminatory bias below 0.1% when compared to human reviews. Agencies must also conduct quarterly bias audits by independent third parties, implement data governance with minimum data point requirements (1,000-10,000 per category), and require human review within 24 hours before final credit decisions. This bill directly affects agencies that compile credit reports for lenders, insurers, or employers, aiming to ensure transparency and fairness in automated credit evaluations.