10 §1312. Definitions
Title 10: COMMERCE AND TRADE
Part 3: REGULATION OF TRADE
Chapter 210: FAIR CREDIT REPORTING ACT
§1312. Definitions
As used in this chapter, unless the context otherwise indicates, the following words shall have the following meanings. [1977, c. 514, (NEW).]
1. Adverse information. "Adverse information" means information that is likely to have a negative effect upon the ability or eligibility of a consumer to obtain credit, credit insurance, employment or other benefits, goods or services.
[ 1977, c. 514, (NEW) .]
1-A. Administrator. "Administrator" means the Superintendent of Consumer Credit Protection.
[ 1995, c. 309, §18 (AMD); 1995, c. 309, §29 (AFF); 2007, c. 273, Pt. B, §6 (REV); 2007, c. 695, Pt. A, §47 (AFF) .]
1-B. Adverse action. "Adverse action" has the following meaning.
A. "Adverse action" has the same meaning as in Section 701(d)(6) of the federal Equal Credit Opportunity Act, Public Law 94-239, Section 2, 90 Stat. 252 (1976). [1997, c. 155, Pt. B, §1 (NEW); 1997, c. 155, Pt. B, §13 (AFF).]
B. In addition to the meaning under paragraph A, "adverse action" means:
(1) A denial or cancellation of, an increase in any charge for or a reduction or other adverse or unfavorable change in the terms of coverage or amount of any insurance, existing or applied for, in connection with the underwriting of insurance;
(2) A denial of employment or any other decision for employment purposes that adversely affects any current or prospective employee;
(3) A denial or cancellation of, an increase in any charge for or any other adverse or unfavorable change in the terms of any license or benefit described in section 1313-A, subsection 1, paragraph C, subparagraph 4; or
(4) An action taken or determination made that is:
(a) In connection with an application that was made by, or a transaction that was initiated by, any consumer or in connection with a review of an account under section 1313-A, subsection 1, paragraph C, subparagraph (6), division (b); and
(b) Adverse to the interests of the consumer. [1997, c. 155, Pt. B, §1 (NEW); 1997, c. 155, Pt. B, §13 (AFF).]
[ 1997, c. 155, Pt. B, §1 (NEW); 1997, c. 155, Pt. B, §13 (AFF) .]
2. Consumer. "Consumer," for purposes of section 1314 only, means an individual who makes an application while physically in this State to a user located in this State, or to a person located in this State accepting applications on behalf of a user, for an economic benefit, and about whom the user reasonably believes a consumer report or an investigative consumer report will be prepared in this State by a consumer reporting agency, or an office of a consumer reporting agency. "Consumer," for all other purposes and for this chapter, means an individual about whom a consumer report or an investigative consumer report has been prepared in this State by a consumer reporting agency, or an office of a consumer reporting agency.
[ 1981, c. 610, §2 (RPR) .]
3. Consumer report. "Consumer report" has the following meaning.
A. "Consumer report" means any written, oral or other communication of any information by a consumer reporting agency bearing on a consumer's creditworthiness, credit standing, credit capacity, debts, check-writing experience, insurability, character, general reputation, personal characteristics, including, but not limited to, information regarding the consumer's medical history or condition, that is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer's eligibility for:
(1) Credit or insurance to be used primarily for personal, family or household purposes;
(2) Employment purposes; or
(3) Other purposes authorized under section 1313-A. [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §2 (RPR).]
B. "Consumer report" does not include:
(1) Any report containing information solely as to transactions or experiences between the consumer and the person making the report, but the term does include a report containing information obtained:
(a) By covert physical surveillance of the consumer, other than through observation or supervision in the ordinary course of the relationship; or
(b) Through examination of the consumer using a polygraph or other truth verification device;
(2) Any communication of information exempt under subparagraph (1) among persons related by common ownership or affiliated by corporate control;
(3) Any communication of other information among persons related by common ownership or affiliated by corporate control, if it is clearly and conspicuously disclosed to the consumer that the information may be communicated among such persons and the consumer is given the opportunity before the time that the information is initially communicated to direct that the information not be communicated among such persons;
(4) Any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device;
(5) Any report in which a person who has been requested by a 3rd party to make a specific extension of credit directly or indirectly to a consumer conveys the person's decision with respect to the request, if the 3rd party advises the consumer of the name and address of the person to whom the request was made and the person makes the disclosures to the consumer required under section 1320;
(6) Any transfer of information to the guarantor, insurer or other similar person participating in the same transaction, if the transmitting party advises the consumer of the name and address of the other person and that other person makes any disclosure required by section 1320;
(7) Any transfer of information collected by a creditor in connection with a consumer's credit application to a subsequent purchaser of the transaction, if the purchaser agrees to use the information only in connection with the purchased transaction; or
(8) Any transfer of information collected by an insurer in connection with a consumer's insurance application or claim to a reinsurer or an insurer with potential liability under the same claim, if the recipient agrees to use the information only in connection with the insurance transaction. [1999, c. 184, §10 (AMD).]
C. "Consumer report" includes a communication of information of the type described by this subsection, notwithstanding the fact that:
(1) The information is used other than for a purpose referred to in paragraph A, if the information was in whole or in part collected, used or expected to be used for a purpose referred to in paragraph A; or
(2) The information is maintained, collected and used only to alert the user to the need for further investigation, but is not intended to be used in whole or in part to deny or increase the charge for credit, insurance, employment or other benefit. [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §2 (RPR).]
[ 1999, c. 184, §10 (AMD) .]
4. Consumer reporting agency. "Consumer reporting agency" means any person who, for monetary fees, dues or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports or investigative consumer reports to 3rd parties.
For purposes of this chapter, the phrase "3rd party" shall not include an insurer to the extent consumer credit information or other information on consumers is furnished to the insurer by its own employee or licensed agent.
[ 1977, c. 677, §2 (AMD) .]
4-A. Credit or insurance transaction that is not initiated by the consumer. "Credit or insurance transaction that is not initiated by the consumer" does not include the use of a consumer report by a person with which the consumer has an account or insurance policy, for purposes of either:
A. Reviewing the account or insurance policy; or [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §3 (NEW).]
B. Collecting the account. [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §3 (NEW).]
[ 1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §3 (NEW) .]
5. Employment purposes. "Employment purposes" when used in connection with a consumer report means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee.
[ 1977, c. 514, (NEW) .]
6. File. "File" when used in connection with information on any consumer means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored.
[ 1977, c. 514, (NEW) .]
6-A. Firm offer of credit or insurance. "Firm offer of credit or insurance" means any offer of credit or insurance to a consumer that will be honored if the consumer is determined, based on information in a consumer report on the consumer, to meet the specific criteria used to select the consumer for the offer, except that the offer may be further conditioned on one or more of the following:
A. The consumer being determined, based on information in the consumer's application for the credit or insurance, to meet specific criteria bearing on creditworthiness or insurability, as applicable, that are established:
(1) Before selection of the consumer for the offer; and
(2) For the purpose of determining whether to extend credit or insurance pursuant to the offer; [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §4 (NEW).]
B. Verification:
(1) That the consumer continues to meet the specific criteria used to select the consumer for the offer, by using information in a consumer report on the consumer, information in the consumer's application for the credit or insurance or other information bearing on the creditworthiness or insurability of the consumer; or
(2) Of the information in the consumer's application for the credit or insurance, to determine that the consumer meets the specific criteria bearing on creditworthiness or insurability; or [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §4 (NEW).]
C. The consumer furnishing any collateral that is a requirement for the extension of the credit or insurance that was:
(1) Established before selection of the consumer for the offer of credit or insurance; and
(2) Disclosed to the consumer in the offer of credit or insurance. [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §4 (NEW).]
[ 1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §4 (NEW) .]
6-B. Identity theft. "Identity theft" means the unauthorized use of another person's personal identifying information to obtain credit, goods, services, money or property.
[ 2005, c. 243, §1 (NEW); 2005, c. 243, §4 (AFF) .]
7. Investigative consumer report. "Investigative consumer report" means a consumer report or portion thereof which includes information bearing on a consumer's character, general reputation, personal characteristics or mode of living which is obtained through personal or telephone interviews with neighbors, friends or associates of the consumer or with others with whom he is acquainted or who may have knowledge concerning any such items of information. Such information shall not include specific factual information on a consumer's credit record obtained directly from a creditor of the consumer or from a consumer reporting agency when such information was obtained directly from a creditor of the consumer or from the consumer.
[ 1981, c. 610, §4 (AMD) .]
8. Medical information. "Medical information" means information or records obtained, directly or indirectly and with the consent of the individual to whom it relates, from a licensed physician, medical practitioner, hospital, clinic or other medical or medically related facility.
[ 1977, c. 677, §3 (AMD) .]
9. Merchant.
[ 1979, c. 541, Pt. B, §10 (RP) .]
10. Person. "Person" means any individual, partnership, corporation, trust, estate, cooperative, association, government or governmental subdivision or agency, or other entity.
[ 1977, c. 514, (NEW) .]
10-A. Supervised financial organization. "Supervised financial organization" means supervised financial organization as defined in Title 9-A, section 1-301, subsection 38-A.
[ 1997, c. 66, §7 (AMD) .]
10-B. Proper identification. "Proper identification" means that information generally considered sufficient to identify a person.
[ 2005, c. 243, §2 (NEW); 2005, c. 243, §4 (AFF) .]
10-C. Security freeze or freeze. "Security freeze" or "freeze" means a notice placed in a consumer report at the request of the consumer pursuant to section 1313-C that prohibits a consumer reporting agency from releasing the consumer's report or any information in the report without that consumer's express authorization.
[ 2005, c. 243, §2 (NEW); 2005, c. 243, §4 (AFF) .]
11. User. "User" when used in connection with the use of a consumer report means any recipient of a consumer report or an investigative consumer report other than the subject thereof.
[ 1977, c. 514, (NEW) .]
SECTION HISTORY
1977, c. 514, (NEW). 1977, c. 677, §§1-3 (AMD). 1979, c. 541, §B10 (AMD). 1979, c. 636, §1 (AMD). 1981, c. 501, §82 (AMD). 1981, c. 610, §§2-4 (AMD). 1995, c. 309, §§18,19 (AMD). 1995, c. 309, §29 (AFF). 1997, c. 66, §7 (AMD). 1997, c. 155, §§B1-4 (AMD). 1997, c. 155, §B13 (AFF). 1999, c. 184, §10 (AMD). 2005, c. 243, §§1,2 (AMD). 2005, c. 243, §4 (AFF). 2007, c. 273, Pt. B, §6 (REV). 2007, c. 273, Pt. B, §7 (AFF). 2007, c. 695, Pt. A, §47 (AFF). 2007, c. 695, Pt. A, §47 (AFF).