Entities

New Mexico (1)

Laws

Fair Credit Reporting Act (FCRA) (16)

New Mexico Fair Credit Reporting and Identity Security Act (FCRISA) (1)

Topics and Issues

Credit repair (1)

Identity theft (1)

Preemption (5)

In 2012, following an appeal by CDIA, CDIA successfully invalidated a New Mexico law that could have increased credit repair. The law would have allowed consumers to block allegedly fraudulent information from their credit reports prior to an investigation of the validity of the allegations and in a way that is preempted to the FCRA. The U.S. Court of Appeals for the Tenth Circuit ruled 3-0 that “New Mexico’s block-first-ask-later rule is therefore in tension with one of the key legislative compromises of the FCRA—the requirement that CRAs be given an opportunity to investigate suspicious block requests before acceding to them.” Consumer Data Indus. Ass’n v. King, 678 F.3d 898. On remand, the U.S. District Court for New Mexico found the law preempted by the FCRA. Consumer Data Indus. Ass’n v. King, U.S. Dist. Ct., D. N.M. (No. 10-cv-00458-MCA-WDS) (July 30, 2012).

The federal appellate court overturned the lower court and Section 3(D) and (E) of the Fair Credit Reporting and Identity Security Act, codified at N.M. Stat. Ann. §§ 56-3A-3.1(D) and (E), (“FCRISA”).  The legislature passed the FCRISA in 2010 (H.B. 131), chapter 54.  The unanimous appellate decision in CDIA’s favor in July 2012, followed a July 2011 opinion by the U.S. District Court for the District of New Mexico in favor of the state.