BILL NUMBER: AB 758	CHAPTERED  10/10/99

	CHAPTER   836
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 8, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 8, 1999
	PASSED THE SENATE   SEPTEMBER 7, 1999
	AMENDED IN SENATE   SEPTEMBER 2, 1999
	AMENDED IN SENATE   AUGUST 17, 1999
	AMENDED IN ASSEMBLY   APRIL 19, 1999
	AMENDED IN ASSEMBLY   APRIL 5, 1999

INTRODUCED BY   Assembly Member Thomson
   (Coauthors:  Assembly Members Alquist, Cardoza, Havice, Honda,
House, Jackson, Longville, Reyes, Romero, Shelley, Strom-Martin, and
Washington)
   (Coauthors:  Senators Figueroa, Hughes, Ortiz, and Solis)

                        FEBRUARY 24, 1999

   An act to amend Sections 1785.31 and 1785.35 of the Civil Code,
relating to consumer credit.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 758, Thomson.  Consumer credit reporting agencies.
   Existing law, referred to as the Consumer Credit Reporting
Agencies Act, provides that the prevailing parties in any action to
recover damages in the case of a negligent or willful violation of
the act shall be entitled to recover court costs and attorneys' fees.

   This bill would limit the recovery of those costs and fees to the
prevailing plaintiffs, except as otherwise specified.  The bill would
also permit a debt collector to recover reasonable attorney's fees
against a plaintiff who brings an action against the debt collector
to recover damages for a negligent or willful violation of the act,
where the basis for the action is related to the collection of a debt
and the court finds that the action was not brought in good faith.
   Under existing law, transactions by mail where the credit grantor
and its major credit application processing center are located
outside the state are excluded from the Consumer Credit Reporting
Agencies Act.
   This bill would delete that exclusion.


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


  SECTION 1.  Section 1785.31 of the Civil Code is amended to read:
   1785.31.  (a) Any consumer who suffers damages as a result of a
violation of this title by any person may bring an action in a court
of appropriate jurisdiction against that person to recover the
following:
   (1) In the case of a negligent violation, actual damages,
including court costs, loss of wages, attorney's fees and, when
applicable, pain and suffering.
   (2) In the case of a willful violation:
   (A) Actual damages as set forth in paragraph (1) above:
   (B) Punitive damages of not less than one hundred dollars ($100)
nor more than five thousand dollars ($5,000) for each violation as
the court deems proper;
   (C) Any other relief that the court deems proper.
   (3) In the case of liability of a natural person for obtaining a
consumer credit report under false pretenses or knowingly without a
permissible purpose, an award of actual damages pursuant to paragraph
(1) or subparagraph (A) of paragraph (2) shall be in an amount of
not less than two thousand five hundred dollars ($2,500).
   (b) Injunctive relief shall be available to any consumer aggrieved
by a violation or a threatened violation of this title whether or
not the consumer seeks any other remedy under this section.
   (c) Notwithstanding any other provision of this section, any
person who willfully violates any requirement imposed under this
title may be liable for punitive damages in the case of a class
action, in an amount that the court may allow.  In determining the
amount of award in any class action, the court shall consider among
relevant factors the amount of any actual damages awarded, the
frequency of the violations, the resources of the violator and the
number of persons adversely affected.
   (d) Except as provided in subdivision (e), the prevailing
plaintiffs in any action commenced under this section shall be
entitled to recover court costs and reasonable attorney's fees.
   (e) If a plaintiff brings an action pursuant to this section
against a debt collector, as defined in subdivision (c) of Section
1788.2, and the basis for the action is related to the collection of
a debt, whether issues relating to the debt collection are raised in
the same or another proceeding, the debt collector shall be entitled
to recover reasonable attorney's fees upon a finding by the court
that the action was not brought in good faith.
   (f) If a plaintiff only seeks and obtains injunctive relief to
compel compliance with this title, court costs and attorney's fees
shall be awarded pursuant to Section 1021.5 of the Code of Civil
Procedure.
   (g)  Nothing in this section is intended to affect remedies
available under Section 128.5 of the Code of Civil Procedure.
  SEC. 2.  Section 1785.35 of the Civil Code is amended to read:
   1785.35.  This title does not apply to any consumer credit report
that by its terms is limited to disclosures from public records
relating to land and land titles and does not apply to any person
whose records and files are maintained for the primary purpose of
reporting those portions of the public records that impart
constructive notice under the law of matters relating to land and
land titles.