10 §1320. Requirements on users of consumer reports
Title 10: COMMERCE AND TRADE
Part 3: REGULATION OF TRADE
Chapter 210: FAIR CREDIT REPORTING ACT
§1320. Requirements on users of consumer reports
1. Procedures when action taken because of consumer report information.
[ 1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §8 (RP) .]
1-A. Record retention. Copies of all disclosures made in accordance with subsection 1-B, must be retained by the user for a period of at least 2 years following the date of disclosure. These records need not be kept in this State if the administrator is given free access to the records, wherever located.
[ RR 1999, c. 2, §11 (COR) .]
1-B. Duties of users taking adverse actions on the basis of information contained in consumer reports. If a person takes an adverse action with respect to a consumer that is based in whole or in part on any information contained in a consumer report, the person shall:
A. Provide written or electronic notice of the adverse action to the consumer; [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §9 (NEW).]
B. Provide to the consumer in writing or electronically:
(1) The name, address and telephone number of the consumer reporting agency, including a toll-free telephone number established by the agency that furnished the report to the person if the agency compiles and maintains files on consumers on a nationwide basis; and
(2) A statement that the consumer reporting agency did not make the decision to take the adverse action and is unable to provide the consumer the specific reasons why the adverse action was taken; and [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §9 (NEW).]
C. Provide to the consumer a written or electronic notice of the consumer's right:
(1) To obtain under section 1316 a free copy of a consumer report on the consumer from the consumer reporting agency. The notice must include an indication of the 60-day period under section 1316 for obtaining the copy; and
(2) To dispute, under section 1317, with a consumer reporting agency the accuracy or completeness of any information in a consumer report furnished by the agency. [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §9 (NEW).]
[ 1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §9 (NEW) .]
2. Procedures when credit denied or charge for credit increased. Whenever credit for personal, family, or household purposes involving a consumer is denied or the charge for such credit is increased either wholly or partly because of information obtained from a person other than a consumer reporting agency bearing upon the consumer's credit worthiness, credit standing, or credit capacity, the user of such information shall, within a reasonable period of time, upon the consumer's written request for the reasons for such adverse action received within 60 days after learning of such adverse action, disclose the nature of the information to the consumer. The user of such information shall clearly and accurately disclose to the consumer his right to make such written request at the time such adverse action is communicated to the consumer.
[ 1977, c. 514, (NEW) .]
2-A. Social security number.
[ 1999, c. 150, §9 (RP) .]
2-B. Consumer request for consumer report.
[ 1999, c. 510, §2 (RP) .]
2-C. Consumer mortgage reports. In any consumer credit transaction involving a consumer report relating to a loan to be secured by a first mortgage on an owner-occupied dwelling, whenever a user has requested such a report and because or partly because of information contained in the report adverse action is taken, the user shall provide a copy of the report to the consumer. This subsection does not apply if the consumer reporting agency provides a copy of the report to the consumer.
[ 1993, c. 505, §1 (NEW) .]
3. Dissemination of consumer report information prohibited. Every user of a consumer report or an investigative consumer report shall be prohibited from disseminating to any other person, other than the consumer who is the subject of the report, any such report other than information contained in its own files as a result of its direct experience with the consumer. Except for medical information and sources as described in section 1315, subsection 1, a consumer reporting agency may not by contract or otherwise prohibit a user of any consumer report or investigative consumer report from disclosing the contents of the report to the consumer to whom it relates. A contractual provision in violation of this section shall be unenforceable.
[ 1981, c. 610, §11 (AMD) .]
3-A. Medical expenses debts; court or administrative orders. A debt collector may report overdue medical expenses for a minor child to a consumer reporting agency only in the name of the responsible party identified in a court order or administrative order if the debt collector is notified orally or in writing of the existence of the order. In addition, a report may not be made until after the debt collector has notified, or made a good faith effort to notify, the responsible party of that party's obligation to pay the overdue medical expenses. Existing information regarding overdue medical expenses for a minor child in the name of a person other than the responsible party identified in a court order or administrative order is considered inaccurate information for the purposes of section 1317 and is subject to correction. A debt collector or consumer reporting agency may request reasonable verification of the order, including a certified copy of the order.
[ 1993, c. 365, §1 (NEW) .]
4. Nonliability. A person may not be held liable for any violation of this section if the person shows by a preponderance of the evidence that at the time of the alleged violation the person maintained reasonable procedures to assure compliance with the provisions of subsections 1-A to 3.
[ RR 1999, c. 2, §12 (COR) .]
SECTION HISTORY
1977, c. 514, (NEW). 1977, c. 677, §10 (AMD). 1981, c. 610, §§9-11 (AMD). 1985, c. 79, (AMD). 1991, c. 453, §§4,5 (AMD). 1991, c. 453, §10 (AFF). 1993, c. 365, §1 (AMD). 1993, c. 505, §1 (AMD). 1997, c. 155, §§B8,9 (AMD). 1997, c. 155, §B13 (AFF). RR 1999, c. 2, §§11,12 (COR). 1999, c. 150, §9 (AMD). 1999, c. 184, §11 (AMD). 1999, c. 510, §2 (AMD).