SENATE BILL REPORT

SB 6804

BYSenator Williams

Prohibiting certain credit practices.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 2, 1990

Majority Report:     That Substitute Senate Bill No. 6804 be substituted therefor, and the substitute bill do pass.

     Signed by Senators von Reichbauer, Chairman; Johnson, Vice Chairman; Fleming, McMullen, Moore, Smitherman.

Senate Staff:Gerard Poliquin (786-7403)

                February 2, 1990

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE, FEBRUARY 2, 1990

BACKGROUND:

There have been instances where credit reporting agencies have been requested by a perspective credit provider to release the names of other credit providers from which a credit applicant has applied for credit.  This information is being requested without the credit applicant's authority, and apparently it is being used by a perspective credit provider in its decision of whether to provide the applicant with credit.

SUMMARY:

A credit reporting agency is prohibited from releasing to a prospective credit provider the names of other entities from which a credit applicant has applied for credit, unless specific written authorization has been given by the applicant.

A credit applicant shall not be denied credit because he or she refused to authorize the release of the names of other entities from which he or she has applied for credit.

EFFECT OF PROPOSED SUBSTITUTE:

Credit inquiries into a person's credit report by a prospective credit provider shall not be used as a sole factor if the credit provider decides not to provide the applicant with credit.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested

Senate Committee - Testified:   Senator Williams, prime sponsor (pro)