093_HB2187eng

 
HB2187 Engrossed                     LRB093 09083 RLC 09315 b

 1        AN ACT in relation to consumer credit.

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

 4        Section  5.   The  Consumer  Fraud and Deceptive Business
 5    Practices Act is  amended by adding Section 7.5 as follows:

 6        (815 ILCS 505/7.5 new)
 7        Sec. 7.5. Verification of accuracy  of  credit  reporting
 8    information used to  extend consumers credit.
 9        (a)  Any  person  who  uses  a  consumer credit report in
10    connection  with  the    approval  of  credit  based  on   an
11    application  for  an  extension of credit, and who  discovers
12    that the address on the credit application  does  not  match,
13    within  a    reasonable  degree  of certainty, the address or
14    addresses listed, if any,  on  the  consumer  credit  report,
15    shall  take  reasonable  steps to verify the accuracy of  the
16    address provided on the  application  for  the  extension  of
17    credit  and  that  the  application   is  not  the  result of
18    financial identity theft as defined in Section  16G-15 of the
19    Criminal Code of 1961.
20        (b) Any person who  uses  a  consumer  credit  report  in
21    connection  with  the    approval  of  credit  based  on  the
22    application  for an extension of credit, and who has received
23    notification  that  the  applicant  has  been  a  victim   of
24    financial    identity  theft, as defined in Section 16G-15 of
25    the Criminal Code of 1961, may   not  lend  money  or  extend
26    credit   without   taking  reasonable  steps  to  verify  the
27    consumer's identity and confirm that the application  for  an
28    extension  of  credit is not the result of financial identity
29    theft.
30        (c) Any consumer who suffers damages as  a  result  of  a
31    violation  of  this Section by any person may bring an action
 
HB2187 Engrossed            -2-      LRB093 09083 RLC 09315 b
 1    in a court of appropriate jurisdiction  against  that  person
 2    to  recover actual damages, court costs, attorney's fees, and
 3    punitive damages of not more than $30,000 for each violation,
 4    as the court deems  proper.
 5        (d) For purposes of this Section, "extension  of  credit"
 6    does  not  include an increase in an existing open-end credit
 7    plan, as defined in  Regulation  Z  of  the  Federal  Reserve
 8    System  (12  C.F.R.  226.2), or any change to or review of an
 9    existing credit account.
10        (e) If a consumer provides initial written  notice  to  a
11    creditor  that  he  or  she is a victim of financial identity
12    theft, as defined in Section 16G-15 of the  Criminal Code  of
13    1961,  the  creditor  shall  provide  written  notice  to the
14    consumer  of his or her rights under this Section.