S-0924

AN ACT Relating to consumer credit information; adding a new chapter to Title 19 RCW; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. It is the intent of the legislature to encourage the use of positive identification systems to the maximum extent possible in consumer credit reporting by consumer reporting agencies and business reporting agencies in order to improve identification of information on reports. The legislature finds that consumers and businesses are being denied credit or experiencing credit difficulties due to inaccuracies in credit reporting, reporting of others' credit problems on their credit reports, and inappropriate credit denial practices.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Business reporting agency" means an entity that reports on the credit history of any business, including sole proprietorships, partnerships, and corporations.

(2) "Consumer reporting agency" means an entity that reports on the credit history of an individual as defined in the federal fair credit reporting act, 15 U.S.C. Sec. 1681a (d) and (f). This definition is not intended to prevent reporting of individuals doing business as sole proprietorships or partnerships, or who are principals in a corporate entity.

(3) "Credit applicant" means a person or business on whom a credit report is being or has been created.

(4) "Credit reporting agency" means a business reporting agency or a consumer reporting agency.

(5) "Report user" means an entity that accesses or uses credit history information generated by consumer or business reporting agencies.

NEW SECTION. Sec. 3. (1) Credit reporting agencies and report users shall use, in addition to any other identifying information, a credit applicant's social security number if made available by the applicant, a federal taxpayer information number, or other positive identification system to avoid confusion with other buyers' credit reports.

(2) Nothing in this chapter may be used to coerce an individual who does not wish to do so to reveal his or her social security number or other identifying information. Notification to an individual in the form of a brief statement that providing such identifying information increases the accuracy of consumer and business credit and financial reports shall not be construed as coercion for the purposes of this chapter.

(3) Individuals or businesses shall not knowingly and with intent to defraud provide inaccurate identifying information, including, but not limited to, inaccurate social security numbers or federal taxpayer identification numbers, to the report user.

NEW SECTION. Sec. 4. (1) A credit reporting agency as defined in chapter 19.134 RCW shall not provide the names of entities that have requested credit information of a credit applicant without specific written authority to do so by the applicant.

(2) A person shall not be denied credit solely because he or she has refused to authorize the release of names of entities seeking credit information.

NEW SECTION. Sec. 5. Credit inquiries into a person's credit report shall not be used as the sole factor in denying credit.

NEW SECTION. Sec. 6. (1) Credit agencies shall correct inaccuracies in credit reports within thirty days of discovering the inaccuracy. Written notice of the correction shall be sent to the credit applicant at the credit applicant's last known address within sixty days after discovering the inaccuracy.

(2) A credit applicant's written objections to information contained in his or her credit report shall be included in the same portion of the report as the disputed information.

NEW SECTION. Sec. 7. Upon request, credit applicants may receive one free copy of their credit report per year from each credit agency compiling credit reports on them. Applicants may request and receive a free credit report if they are rejected for credit.

NEW SECTION. Sec. 8. (1) Any person who violates this chapter shall be subject to a civil penalty not to exceed two hundred fifty dollars for each violation, to be assessed and collected in a civil action brought by the credit applicant, by the attorney general, or by the prosecuting or city attorney of the county or city in which the violation occurred. However, no civil penalty may be assessed for a violation of this chapter if the defendant shows by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error made notwithstanding the defendant's maintenance of procedures reasonably adopted to avoid such an error.

(2) The attorney general, or any prosecuting or city attorney within his or her respective jurisdiction, may bring an action in the superior court in the name of the people of the state of Washington to enjoin violations of this chapter and, upon notice to the defendant of not less than five days, to temporarily restrain and enjoin the violation. If it appears to the satisfaction of the court that the defendant has, in fact, violated this chapter, the court may issue an injunction restraining further violations without requiring proof that any person has been damaged by the violation. In these proceedings, if the court finds that the defendant has violated this chapter, the court may direct the defendant to pay any or all costs incurred by the attorney general or prosecuting or city attorney in seeking or obtaining injunctive relief pursuant to this subsection.

NEW SECTION. Sec. 9. This chapter shall be known and cited as the fair credit reporting act.

NEW SECTION. Sec. 10. Sections 1 through 9 of this act shall constitute a new chapter in Title 19 RCW.