South Carolina General Assembly
109th Session, 1991-1992

Bill 1092


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Introducing Body:               Senate
Bill Number:                    1092
Primary Sponsor:                Bryan
Committee Number:               02
Type of Legislation:            GB
Subject:                        Credit information, provisions when
                                incorrect
Residing Body:                  Senate
Current Committee:              Banking and Insurance
Computer Document Number:       DKA/3483.SD
Introduced Date:                Jan 14, 1992
Last History Body:              Senate
Last History Date:              Jan 14, 1992
Last History Type:              Introduced, read first time,
                                referred to Committee
Scope of Legislation:           Statewide
All Sponsors:                   Bryan
Type of Legislation:            General Bill



History


 Bill  Body    Date          Action Description              CMN
 ----  ------  ------------  ------------------------------  ---
 1092  Senate  Jan 14, 1992  Introduced, read first time,    02
                             referred to Committee
 1092  Senate  Nov 18, 1991  Prefiled, referred to           02
                             Committee

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 34-1-135 SO AS TO PROVIDE THAT A FINANCIAL INSTITUTION OR LENDER REGULATED BY STATE OR FEDERAL LAW CONDUCTING BUSINESS IN THIS STATE, UPON BEING NOTIFIED IN WRITING THAT IT HAS ERRONEOUS OR INCORRECT CREDIT INFORMATION IN ITS FILE REGARDING A LOAN APPLICANT OR A PROSPECTIVE CUSTOMER AS A RESULT OF A CREDIT REPORT OR EXAMINATION IT CONDUCTED, MUST CORRECT THAT INFORMATION IN ITS FILE WITHIN FIFTEEN DAYS OF THE NOTIFICATION, AND TO PROVIDE FOR CERTAIN CIVIL PENALTIES UPON VIOLATION AND PROVIDE FOR A CAUSE OF ACTION AGAINST THE FINANCIAL INSTITUTION OR LENDER FOR ANY DAMAGE SUSTAINED AS A RESULT OF THE FAILURE TO CORRECT THIS INFORMATION AND FOR ATTORNEY'S FEES AND COSTS UPON MAINTAINING A SUCCESSFUL ACTION.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. The 1976 Code is amended by adding:

"Section 34-1-135. A financial institution or lender regulated by state or federal law conducting business in this state, upon being notified in writing that it has erroneous or incorrect credit information in its file regarding a loan applicant or a prospective customer as a result of a credit report or examination it conducted, must correct that information in its file within fifteen days of the notification.

The State Board of Financial Institutions or other entity having jurisdiction over the financial institution or lender may impose a civil penalty not exceeding one thousand dollars for a violation of this section and each violation constitutes a separate offense. In addition, a cause of action against the financial institution or lender lies in that person for any damages sustained by him as a result of the failure to correct this information, and upon maintaining a successful action against the financial institution or lender the person also is entitled to attorney's fees and costs.

If the erroneous or incorrect credit information was obtained by the financial institution or lender from another person who performed the credit report or examination for a fee, the financial institution or lender upon receiving such notification must remove the erroneous or incorrect information from the credit report or examination so obtained and must additionally notify the other person preparing the report of the mistake in writing within ten days and request it to also make the necessary correction."

SECTION 2. This act takes effect upon approval by the Governor.

-----XX-----