HB4952 93RD GENERAL ASSEMBLY

LRB093 18782 LCB 44515 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4952

Introduced 02/05/04, by Annazette Collins

SYNOPSIS AS INTRODUCED:

New Act
220 ILCS 5/4-201.5 new

Creates the Illinois Fair Credit Reporting Act and amends the Public Utilities Act. Directs the Illinois Commerce Commission to regulate the business of credit reporting agencies. Directs the Commission to investigate complaints against credit reporting agencies and to host public hearings. Provides for a civil penalty of up to $1,000 for a credit reporting agency's willful or negligent failure to resolve a consumer's complaint in a timely manner. Imposes certain requirements on credit reporting agencies. Prohibits credit reporting agencies from making credit reports containing information reported by specified utilities. Provides that the federal Fair Credit Reporting Act governs matters not addressed by the Illinois Act.

A BILL FOR

AN ACT concerning credit reports.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Illinois Fair Credit Reporting Act.

Section 5. Findings. The General Assembly finds that the welfare and prosperity of all Illinois citizens require the adequate and efficient provision of accurate and reliable information regarding Illinois consumers' credit history.

Section 10. Definitions. In this Act:

"Consumer" means an individual.

"Credit report" means a consumer report as defined in the federal Fair Credit Reporting Act.

"Credit reporting agency" means a consumer reporting agency as defined in the federal Fair Credit Reporting Act.

"Commission" means the Illinois Commerce Commission.

Section 15. Commission; regulation of credit reporting agencies.

(a) The Commission shall regulate the business of credit reporting agencies in this State. The Commission's duties include, but are not limited to:

(1) investigating complaints against credit reporting agencies; and

(2) hosting quarterly public hearings with credit reporting agencies regarding service to the community.

(b) If a complaint by a consumer regarding the accuracy of his or her credit report is not resolved by the credit reporting agency in a timely manner, and if the Commission finds that the agency willfully or negligently failed to resolve the complaint in a timely manner, the Commission may impose a civil penalty of up to $1,000 against the agency for the agency's willful or negligent act.

(c) If the Commission determines that an inordinate number of unresolved complaints have been filed against a credit reporting agency, the Commission shall suspend that agency's business license for a period of not more than 3 months or until the majority of the complaints are resolved.

Section 20. Free credit reports to consumers.

(a) Each credit reporting agency shall provide a free credit report to a consumer if he or she makes the request not later than 60 days after receiving a notification that his or her credit rating has been adversely affected.

(b) Upon the request of a consumer, an agency that maintains his or her credit report on file shall provide it free of charge once every 12 months if the consumer certifies in writing that he or she:

(1) is unemployed and intends to apply for employment in the 60-day period commencing on the date the certification is made;

(2) is a recipient of public assistance; or

(3) has reason to believe that the file on the consumer at the agency contains inaccurate information because of fraud.

Section 25. Errors; consumer's notice; corrective action.

(a) If any information in a consumer's credit report is inaccurate, the consumer must promptly notify the credit reporting agency of any error or inaccuracy. The agency must then conduct an investigation, take any corrective action, and inform the consumer in writing of the results of the investigation.

(b) If a consumer is denied credit based upon inaccurate information in a report furnished by a credit reporting agency, the agency must send a corrected copy of the report along with a written apology to the consumer and the person that denied credit to the consumer.

Section 30. Information on overdue child support obligations. Every credit reporting agency shall include, in any credit report it furnishes in accordance with this Act, information on the consumer's failure to pay overdue child support if the information (i) is furnished to the agency by a State or local child support enforcement agency or is verified by any local, State, or federal government agency and (ii) antedates the report by 7 years or less.

Section 32. Utilities; information. A credit reporting agency may not make any credit report containing information reported by any of the following:

(a) a public utility as defined in Section 3-105 of the Public Utilities Act;

(b) a telecommunications carrier as defined in Section 13-202 of the Public Utilities Act;

(c) an alternative retail electric supplier as defined in Section 16-202 of the Public Utilities Act; or

(d) an alternative gas supplier as defined in Section 19-105 of the Public Utilities Act.

Section 35. Information regarding inquiries. A credit reporting agency may not furnish to any person a record of inquiries solely resulting from credit transactions that are not initiated by a consumer.

Section 40. Procedural safeguards. A credit reporting agency must maintain reasonable procedures designed to prevent the reappearance in a consumer's file, and in credit reports on the consumer, of information that is deleted or otherwise corrected pursuant to this Act.

Section 45. Complaint referral card. Every credit reporting agency must insert in its correspondence with a consumer a complaint referral card listing the office addresses and telephone numbers of the Commission and the Attorney General. The State shall reimburse the agency for the agency's expenses in complying with this requirement.

Section 50. Federal law. The federal Fair Credit Reporting Act shall govern any area or subject matter relating to credit reporting by credit reporting agencies not expressly addressed by the provisions of this Act.

Section 55. Rules. The Commission shall adopt rules necessary to implement this Act.

Section 90. The Public Utilities Act is amended by adding Section 4-201.5 as follows:

(220 ILCS 5/4-201.5 new)

Sec. 4-201.5. Regulation of credit reporting agencies. The Commission shall regulate the activities of credit reporting agencies in this State as provided in the Illinois Fair Credit Reporting Act.