BILL NUMBER: AB 1610	CHAPTERED  07/07/03

	CHAPTER  41
	FILED WITH SECRETARY OF STATE  JULY 7, 2003
	APPROVED BY GOVERNOR  JULY 7, 2003
	PASSED THE SENATE  JUNE 24, 2003
	PASSED THE ASSEMBLY  MAY 12, 2003
	AMENDED IN ASSEMBLY  APRIL 29, 2003

INTRODUCED BY   Assembly Member Pavley
   (Coauthors:  Assembly Members Hancock and Koretz)
   (Coauthor:  Senator Romero)

                        FEBRUARY 21, 2003

   An act to amend Section 1785.20.3 of the Civil Code, relating to
consumer credit.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1610, Pavley.  Consumer credit reporting agencies:  use of
reports.
   Existing law regulates the activities of users of consumer credit
reports.  Existing law requires a person who uses a consumer credit
report for a credit approval based on an application for credit and
who discovers that the address on the credit application does not
match, within a reasonable degree of certainty, the address or
addresses listed, on the consumer credit report, to take reasonable
steps to verify the accuracy of the address provided on the
application, as specified.  Existing law permits a consumer to bring
an action for a violation of these provisions to recover actual
damages, attorney's fees, court costs, and punitive damages, as
specified.
   This bill would require a user of a consumer credit report, as
described above, who discovers that the consumer's first and last
name, address, or social security number on the application does not
match, within a reasonable degree of certainty, the corresponding
information in the consumer credit report, to take reasonable steps
to verify the accuracy of the information provided on the
application, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1785.20.3 of the Civil Code is amended to read:

   1785.20.3.  (a) Any person who uses a consumer credit report in
connection with the approval of credit based on an application for an
extension of credit, and who discovers that the consumer's first and
last name, address, or social security number, on the credit
application does not match, within a reasonable degree of certainty,
the consumer's first and last name, address or addresses, or social
security number listed, if any, on the consumer credit report, shall
take reasonable steps to verify the accuracy of the consumer's first
and last name, address, or social security number provided on the
application to confirm that the extension of credit is not the result
of identity theft, as defined in Section 1798.92.
   (b) Any person who uses a consumer credit report in connection
with the approval of credit based on an application for an extension
of credit, and who has received notification pursuant to subdivision
(k) of Section 1785.16 that the applicant has been a victim of
identity theft, as defined in Section 1798.92, may not lend money or
extend credit without taking reasonable steps to verify the consumer'
s identity and confirm that the application for an extension of
credit is not the result of identity theft.
   (c) Any consumer who suffers damages as a result of a violation of
this section by any person may bring an action in a court of
appropriate jurisdiction against that person to recover actual
damages, court costs, attorney's fees, and punitive damages of not
more than thirty thousand dollars ($30,000) for each violation, as
the court deems proper.
   (d) As used in this section, "identity theft" has the meaning
given in subdivision (b) of Section 1798.92.
   (e) For the purposes of this section, "extension of credit" does
not include an increase in an existing open-end credit plan, as
defined in Regulation Z of the Federal Reserve System (12 C.F.R.
226.2), or any change to or review of an existing credit account.
   (f) If a consumer provides initial written notice to a creditor
that he or she is a victim of identity theft, as defined in
subdivision (d) of Section 1798.92, the creditor shall provide
written notice to the consumer of his or her rights under subdivision
(k) of Section 1785.16.
   (g) The provisions of subdivisions (k) and (l) of Section 1785.16
do not apply to a consumer credit reporting agency that acts only as
a reseller of credit information by assembling and merging
information contained in the database of another consumer credit
reporting agency or the databases of multiple consumer credit
reporting agencies, and does not maintain a permanent database of
credit information from which new credit reports are produced.
   (h) This section does not apply if one of the addresses at issue
is a United States Army or Air Force post office address or a United
States Fleet post office address.