Current Status Bill Number:747 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970513 Primary Sponsor:Martin All Sponsors:Martin and Alexander Drafted Document Number:res1410.lam Residing Body:Senate Current Committee:Banking and Insurance Committee 02 SBI Subject:Consumer loans, credit sales; seller to disclose credit inquiries to applicant before inquiry with reporting agency
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19970513 Introduced, read first time, 02 SBI
referred to Committee
View additional legislative information at the LPITS web site.
TO AMEND CHAPTER 2, TITLE 37, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONSUMER CREDIT SALES, AND CHAPTER 3, TITLE 37, RELATING TO CONSUMER LOANS, BY ADDING SECTIONS 37-2-307 AND 37-3-307, RESPECTIVELY, SO AS TO PROVIDE THAT A CONSUMER CREDIT SELLER SHALL MAKE CERTAIN DISCLOSURES REGARDING CREDIT INQUIRIES TO AN APPLICANT OR PROSPECTIVE APPLICANT BEFORE THE SELLER MAKES AN INQUIRY WITH A CONSUMER REPORTING AGENCY CONCERNING THE CREDITWORTHINESS OR CREDIT STANDING OF THE APPLICANT OR PROSPECTIVE APPLICANT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 2, Title 37 of the 1976 Code is amended by adding:
"Section 37-2-307. (A) Before a consumer credit seller makes or causes to be made an inquiry with a consumer reporting agency as consumer reporting agency is defined in 15 U.S.C. Section1681a(f) concerning the creditworthiness or credit standing of an applicant or prospective applicant for credit with that seller, the seller shall disclose, in writing, the following:
(1) that an inquiry is being made with a consumer reporting agency concerning the applicant or prospective applicant;
(2) the purposes of that inquiry;
(3) that unless the applicant authorizes the inquiry, it will not be made;
(4) that other prospective creditors may, in some circumstances, regard excessive numbers of inquiries about individuals recorded at consumer reporting agencies as negative credit information even if credit is not extended or not denied to that individual, and that excessive inquiries concerning individuals can make it more difficult for those individuals to get credit in the future; and
(5) that the applicant or prospective applicant has a right to receive either a copy of the results of the inquiry or a summary of the results by contacting the credit reporting agency directly.
(B) A notice in substantially the following form will be regarded as compliant with this section:
(Creditor name) is preparing to make an inquiry concerning you at (credit reporting agency name). The purpose of this inquiry is to determine if you qualify for credit with the company. If you do not agree for this inquiry to be made, it will not be made. Other prospective creditors, under some circumstances, may regard excessive numbers of credit inquiries made concerning an individual to be negative credit information, regardless of whether those inquiries result in credit transactions or credit denials. For that reason, excessive inquiries may cause credit to be more difficult or costly to obtain under some circumstances. You have a right to have (consumer reporting company) disclose this information to you by contacting it directly."
SECTION 2. Chapter 3, Title 37 of the 1976 Code is amended by adding:
"Section 37-3-307. (A) Before a consumer credit seller makes or causes to be made an inquiry with a consumer reporting agency as consumer reporting agency is defined in 15 U.S.C. Section1681a(f) concerning the creditworthiness or credit standing of an applicant or prospective applicant for credit with that seller, the seller shall disclose, in writing, the following:
(1) that an inquiry is being made with a consumer reporting agency concerning the applicant or prospective applicant;
(2) the purposes of that inquiry;
(3) that unless the applicant authorizes the inquiry, it will not be made;
(4) that other prospective creditors may, in some circumstances, regard excessive numbers of inquiries about individuals recorded at consumer reporting agencies as negative credit information even if credit is not extended or not denied to that individual, and that excessive inquiries concerning individuals can make it more difficult for those individuals to get credit in the future; and
(5) that the applicant or prospective applicant has a right to receive either a copy of the results of the inquiry or a summary of the results by contacting the credit reporting agency directly.
(B) A notice in substantially the following form will be regarded as compliant with this section:
(Creditor name) is preparing to make an inquiry concerning you at (credit reporting agency name). The purpose of this inquiry is to determine if you qualify for credit with the company. If you do not agree for this inquiry to be made, it will not be made. Other prospective creditors, under some circumstances, may regard excessive numbers of credit inquiries made concerning an individual to be negative credit information, regardless of whether those inquiries result in credit transactions or credit denials. For that reason, excessive inquiries may cause credit to be more difficult or costly to obtain under some circumstances. You have a right to have (consumer reporting company) disclose this information to you by contacting it directly."
SECTION 3. This act takes effect upon approval by the Governor.