Full Text of HB5988 98th General Assembly
HB5988 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB5988 Introduced , by Rep. Derrick Smith SYNOPSIS AS INTRODUCED: |
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Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that it is an unlawful practice for a consumer reporting agency to lower a consumer's credit score solely because of credit inquiries regarding the consumer's credit.
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| | A BILL FOR |
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| 1 | | AN ACT concerning business.
| 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 2RRR as follows: | 6 | | (815 ILCS 505/2RRR new) | 7 | | Sec. 2RRR. Credit inquiries affecting credit scores. | 8 | | (a) It is an unlawful practice for a credit reporting | 9 | | agency to use any designated credit inquiries made to a | 10 | | consumer reporting agency with respect to the consumer as a | 11 | | negative factor in: | 12 | | (1) evaluating a consumer's creditworthiness, credit | 13 | | standing, or credit capacity; or | 14 | | (2) determining: | 15 | | (A) a consumer's eligibility for credit; or | 16 | | (B) the terms or costs of any credit extended to a | 17 | | consumer. | 18 | | (b) It is an unlawful practice for a credit reporting | 19 | | agency to consider
any credit score generated for the consumer | 20 | | if the credit score is based upon a methodology in which the | 21 | | credit score is adversely affected by any designated credit | 22 | | inquiries made with respect to the consumer in: | 23 | | (1) evaluating a consumer's creditworthiness, credit |
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| 1 | | standing, or credit capacity; or | 2 | | (2) determining: | 3 | | (A) a consumer's eligibility for credit; or | 4 | | (B) the terms or costs of any credit extended to a | 5 | | consumer. | 6 | | (c) As used in this Section: | 7 | | (1) "Consumer" means an individual: | 8 | | (A) whose principal residence is in Illinois; and | 9 | | (B) whose credit information and history are | 10 | | recorded in a consumer report. | 11 | | (2) "Consumer report" means any written, oral, or other | 12 | | communication of any information that: | 13 | | (A) is made by a consumer reporting agency; | 14 | | (B) bears on a consumer's creditworthiness, credit | 15 | | standing, credit capacity, character, general | 16 | | reputation, personal characteristics, or mode of | 17 | | living; and | 18 | | (C) is used or expected to be used or collected in | 19 | | whole or in part for the purpose of serving as a factor | 20 | | in establishing a consumer's eligibility for: | 21 | | (i) credit or insurance to be used primarily | 22 | | for personal, family, or household purposes; | 23 | | (ii) employment purposes; or | 24 | | (iii) any other purpose authorized under | 25 | | Section 604 of the federal Fair Credit Reporting | 26 | | Act (15 U.S.C. 1681b). |
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| 1 | | (3) "Consumer reporting agency" means any person that, | 2 | | for monetary fees or dues or on a cooperative nonprofit | 3 | | basis, regularly engages in whole or in part in the | 4 | | practice of assembling or evaluating consumer credit | 5 | | information or other information on consumers for the | 6 | | purpose of furnishing consumer reports to third parties. | 7 | | (4) "Credit file", with respect to a consumer, means | 8 | | all the information that: | 9 | | (A) pertains to the consumer; and | 10 | | (B) is recorded and retained by a consumer | 11 | | reporting agency,
regardless of how the information is | 12 | | stored. | 13 | | (5) "Creditor" means: | 14 | | (A) a lender of money; or | 15 | | (B) a vendor or lessor of goods, services, | 16 | | property, rights, or privileges for which payment is | 17 | | arranged through a credit transaction. | 18 | | "Creditor" includes any successor in interest to, | 19 | | affiliate, associate, or subsidiary of, or director, | 20 | | officer, or employee of
a lender, vendor, or lessor | 21 | | described in this item (5). | 22 | | (6) "Credit score" means a numerical value or a | 23 | | categorization that: | 24 | | (A) is derived from a statistical tool or modeling | 25 | | system; and | 26 | | (B) is used by a creditor to predict the likelihood |
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| 1 | | of certain credit behaviors, including default, | 2 | | regardless of whether the numerical value or | 3 | | categorization is referred to as a "credit score", | 4 | | "risk predictor", "risk score", some other term, or by | 5 | | a proprietary name. | 6 | | (7) "Designated credit inquiry" refers to any of the | 7 | | following credit inquiries made to a consumer reporting | 8 | | agency about a consumer: | 9 | | (A) a credit inquiry: | 10 | | (i) not initiated by the consumer; or | 11 | | (ii) requested by the consumer for the | 12 | | consumer's own credit information. | 13 | | (B) a credit inquiry relating to insurance | 14 | | coverage. | 15 | | (C) multiple creditor inquiries: | 16 | | (i) coded by the consumer reporting agency on | 17 | | the consumer's consumer report as being from | 18 | | creditors engaged in the same industry; and | 19 | | (ii) made within 30 days of one another.
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