BILL NUMBER: AB 1220	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 20, 2013
	AMENDED IN ASSEMBLY  MAY 6, 2013
	AMENDED IN ASSEMBLY  APRIL 22, 2013
	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Member Skinner

                        FEBRUARY 22, 2013

   An act  to amend Section 1785.20 of, and  to add
Section 1785.10.1  to,   to  the Civil
Code, relating to consumer credit.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1220, as amended, Skinner. Consumer credit reporting: adverse
action.
   Existing law requires a consumer credit reporting agency, upon
request and proper identification of any consumer, to allow the
consumer to visually inspect all files maintained regarding that
consumer at the time of the request. Existing law additionally grants
a consumer the right to request and receive a written copy of the
file. Existing federal law prohibits a consumer credit reporting
agency from prohibiting a user of a consumer credit report furnished
by the agency from disclosing the contents of the report to the
consumer if adverse action has been taken against the consumer by the
user based on the report.
    This bill would make it unlawful for a consumer credit reporting
agency to prohibit, or to dissuade or attempt to dissuade, a user of
a consumer credit report furnished by the credit reporting agency
from providing a copy of the consumer's credit report to the
consumer, upon the consumer's request, if the user has taken adverse
action against the consumer based upon the report.  On and
after July 1, 2014, the bill would require that a contract between a
credit reporting agency and a user of a consumer credit report
include a statement that federal law prohibits a consumer credit
reporting agency from prohibiting a user of consumer credit reports
from disclosing a copy or the contents of the report to the user and
allows a user to disclose this information to a consumer, as
specified.  The bill would authorize the Attorney General,
among others, to bring a civil action, for a civil penalty not to
exceed $5,000, against any credit reporting agency for a violation of
these provisions. 
   Under existing law, if any person takes any adverse action with
respect to any consumer, and the adverse action is based on any
information contained in a consumer credit report, the person is
required to, among other things, provide written notice of the
adverse action to the consumer.  
   This bill would require that notice to include a specified
statement advising the consumer of his or her right to request the
contents of, or a copy of, the report from the credit reporting
agency. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 1785.10.1 is added to the Civil Code, to read:
   1785.10.1.  (a) It is unlawful for a consumer credit reporting
agency to prohibit in any manner, including, but not limited to, in
the terms of a contract enforceable in the state, or to dissuade or
attempt to dissuade, a user of a consumer credit report furnished by
the credit reporting agency from providing a copy of the consumer's
credit report to the consumer, upon the consumer's request, if the
user has taken adverse action against the consumer based in whole or
in part upon information in the report.  On and after July 1,
2014, any new or renewed contract between a credit reporting agency
and a user of a consumer credit report for the provision of consumer
credit reports shall include a statement that federal law prohibits a
consumer credit reporting agency from prohibiting a user of consumer
credit reports from disclosing a copy or the contents of the report
to the consumer if adverse action has been taken by the user based in
whole or in part on the report, and allows a user of consumer credit
reports to disclose the report, or the contents of the report, to
the consumer under those circumstances. 
   (b) The Attorney General, any district attorney or city attorney,
or a city prosecutor in any city or city and county having a
full-time city prosecutor, may bring a civil action in any court of
competent jurisdiction against any credit reporting agency violating
this section for a civil penalty not to exceed five thousand dollars
($5,000) which may be assessed and recovered in a civil action
brought in the name of the people of the State of California.

  SEC. 2.    Section 1785.20 of the Civil Code is
amended to read:
   1785.20.  (a) If any person takes any adverse action with respect
to any consumer, and the adverse action is based, in whole or in
part, on any information contained in a consumer credit report, that
person shall do all of the following:
   (1) Provide written notice of the adverse action to the consumer
that includes the following statement:

   "We have taken adverse action on your application and our decision
is based in whole or in part upon your credit report. You have a
right to request from us the contents of the report, or a copy of the
credit report itself, that we received from the consumer credit
reporting agency. Neither state nor federal law prevents you from
obtaining the contents of your credit report that we received about
you, or a copy of the credit report itself, from us under those
circumstances."

   (2) Provide the consumer with the name, address, and telephone
number of the consumer credit reporting agency which furnished the
report to the person.
   (3) Provide a statement that the credit grantor's decision to take
adverse action was based in whole or in part upon information
contained in a consumer credit report.
   (4) Provide the consumer with a written notice of the following
rights of the consumer:
   (A) The right of the consumer to obtain within 60 days a free copy
of the consumer's consumer credit report from the consumer credit
reporting agency identified pursuant to paragraph (2) and from any
other consumer credit reporting agency which compiles and maintains
files on consumers on a nationwide basis.
   (B) The right of the consumer under Section 1785.16 to dispute the
accuracy or completeness of any information in a consumer credit
report furnished by the consumer credit reporting agency.
   (b) Whenever credit or insurance for personal, family, or
household purposes involving a consumer is denied or the charge for
such credit is increased either wholly or in part because of
information obtained from a person other than a consumer credit
reporting agency bearing upon consumer's credit worthiness or credit
standing, the user of that information shall, within a reasonable
period of time, and upon the consumer's written request for the
reasons for that adverse action received within 60 days after
learning of the adverse action, disclose the nature and substance of
the information to the consumer. The user of the information shall
clearly and accurately disclose to the consumer his or her right to
make such a written request at the time the adverse action is
communicated to the consumer.
   (c) No person shall be held liable for any violation of this
section if he or she shows by a preponderance of the evidence that at
the time of the alleged violation he or she maintained reasonable
procedures to assure compliance with this section.
   (d) Nothing in this chapter shall excuse compliance with the
requirements of Section 1787.2.