SENATE BILL 97133
BY SENATORS Johnson, Chlouber, Hernandez, Ament, Bishop, Martinez, Matsunaka, Phillips, Powers, Reeves, Rizzuto, Schroeder, Thiebaut, Wattenberg, Alexander, Congrove, Dennis, Duke, Hopper, Norton, Pascoe, Perlmutter, Rupert, Tanner, Tebedo, and Wham;
also REPRESENTATIVES Tucker, Adkins, Leyba, Schauer,
Allen, Clarke, Entz, Epps, Hagedorn, Kreutz, Mace, McPherson,
Morrison, Nichol, Paschall, Reeser, Schwarz, Sullivant, Tate,
Tupa, and Young.
CONCERNING THE PROTECTION OF CONSUMERS FROM INACCURATE
CONSUMER REPORTS ISSUED BY CONSUMER REPORTING AGENCIES.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. Article
14.3 of title 12, Colorado Revised Statutes, 1991 Repl. Vol.,
as amended, is amended BY THE ADDITION OF A NEW SECTION to read:
1214.3101.5. Legislative
declaration. THE GENERAL ASSEMBLY FINDS
AND DECLARES THAT THE USE OF CONSUMER REPORTING AGENCIES IS INCREASING
RAPIDLY AS CONSUMER CREDIT TRANSACTIONS BECOME THE RULE RATHER
THAN THE EXCEPTION IN EVERYDAY CONSUMER PURCHASING. CONSUMER
CREDIT REPORTS BY CONSUMER REPORTING AGENCIES MAY REPORT ON A
CONSUMER'S CREDIT WORTHINESS, CREDIT STANDING, CREDIT CAPACITY,
DEBTS, CHARACTER, GENERAL REPUTATION, PERSONAL CHARACTERISTICS,
OR MODE OF LIVING AS FACTORS TO ESTABLISH A CONSUMER'S ELIGIBILITY
FOR CREDIT INSURANCE OR EMPLOYMENT. WHEN A CONSUMER REPORTING
AGENCY UNDERTAKES A BUSINESS THAT HAS THE POTENTIAL TO PROFOUNDLY
AFFECT AN INDIVIDUAL CONSUMER'S LIFE, WHETHER FOR GOOD OR ILL,
IT IS INCUMBENT UPON SUCH AGENCIES TO ENSURE THAT THE INFORMATION
THEY ARE PROVIDING IS ACCURATE. INACCURATE CONSUMER CREDIT REPORTS
DIRECTLY IMPAIR THE EFFICIENCY OF THE BANKING SYSTEM AND UNFAIR
CREDIT REPORTING METHODS UNDERMINE THE PUBLIC CONFIDENCE IN THE
BANKING SYSTEM. THERE IS A NEED TO ENSURE THAT CONSUMER REPORTING
AGENCIES EXERCISE THEIR RESPONSIBILITIES WITH FAIRNESS, IMPARTIALITY,
AND RESPECT FOR THE CONSUMER'S RIGHTS. THE GENERAL ASSEMBLY FURTHER
FINDS AND DECLARES THAT, IN THE EVENT THE INFORMATION PROVIDED
BY A CONSUMER REPORTING AGENCY IN A CONSUMER CREDIT REPORT IS
INACCURATE, THE CONSUMER HAS THE RIGHT TO HAVE THAT INFORMATION
CORRECTED IN A SWIFT AND UNCOMPLICATED WAY.
SECTION 2. 1214.3102
(4), Colorado Revised Statutes, 1991 Repl. Vol., as amended, is
amended, and the said 1214.3102 is further amended
BY THE ADDITION OF A NEW SUBSECTION, to read:
1214.3102. Definitions.
As used in this article, unless the context otherwise requires:
(4) "Consumer reporting agency"
means any person which, for monetary fees, dues, or on a cooperative
nonprofit basis, regularly engages in whole or in part in the
practice of assembling or evaluating consumer credit information
or other information on consumers for the purpose of furnishing
consumer reports to third parties. "Consumer reporting agency"
shall not include any business entity that provides check verification
OR CHECK GUARANTEE services only.
(4.5) "CREDITWORTHINESS" MEANS
ANY ENTRY IN A CONSUMER'S CREDIT FILE THAT IMPACTS THE ABILITY
OF A CONSUMER TO OBTAIN AND RETAIN CREDIT, EMPLOYMENT, BUSINESS
OR PROFESSIONAL LICENSES, INVESTMENT OPPORTUNITIES, OR INSURANCE.
ENTRIES CONTAINED IN A CONSUMER FILE OR IN A CONSUMER REPORT THAT
AFFECT CREDITWORTHINESS SHALL INCLUDE, BUT NOT BE LIMITED TO,
PAYMENT INFORMATION, DEFAULTS, JUDGMENTS, LIENS, BANKRUPTCIES,
COLLECTIONS, RECORDS OF ARREST AND INDICTMENTS, AND MULTIPLECREDIT
INQUIRIES.
SECTION 3. 1214.3103
(1) (c) (I), (1) (c) (II), (1) (c) (III), and (2), Colorado Revised
Statutes, 1991 Repl. Vol., as amended, are amended to read:
1214.3103. Permissible
purposes prohibition. (1) A
consumer reporting agency may furnish a consumer report only under
the following circumstances:
(c) To a person which the consumer reporting
agency has reason to believe:
(I) Intends to use the information in
connection with a credit transaction involving the consumer on
whom the information is to be furnished and involving an extension
of credit to, or review or collection of an account of, the consumer;
AND IF THE CONSUMER CHOOSES TO PROVIDE THEIR SOCIAL SECURITY NUMBER
TO THE USER, THE USER SHALL INCLUDE THE SOCIAL SECURITY NUMBER
WITH, OR AS A SUPPLEMENT TO, A REQUEST FOR A CONSUMER REPORT,
AND INCLUDE THE SOCIAL SECURITY NUMBER WHEN TRANSMITTING SUBSEQUENT
CREDIT INFORMATION TO A CONSUMER REPORTING AGENCY; or
(II) Intends to use the information for
employment purposes ONLY IF AN APPLICANT OR EMPLOYEE IS FIRST
INFORMED THAT A CREDIT REPORT MAY BE REQUESTED IN CONNECTION WITH
HIS OR HER APPLICATION FOR EMPLOYMENT AND THE CONSUMER CONSENTS
IN WRITING TO THE SAME; or
(III) Intends to use the information in
connection with the underwriting of insurance involving the consumer
AND SUCH PERSON ESTABLISHES THAT THE CONSUMER HAS RECEIVED WRITTEN
NOTIFICATION, OR NOTIFICATION IN THE SAME MEDIUM AS THE APPLICATION
FOR INSURANCE, THAT A CREDIT REPORT MAY BE REQUESTED IN CONNECTION
WITH HIS OR HER APPLICATION FOR INSURANCE; or
(2) A consumer reporting agency may not,
by contract or otherwise, prohibit a user of any consumer report
or investigative consumer report from, upon request of the consumer,
disclosing AND EXPLAINING the contents of such report OR PROVIDING
A COPY OF THE REPORT to the consumer to whom it relates if adverse
action against the consumer has been taken or is contemplated
by the user of the consumer report or investigative consumer report,
based in whole or in part on such report. No user or consumer
reporting agency shall be held liable or otherwise responsible
for a disclosed OR COPIED report when acting pursuant to this
subsection (2) nor shall such disclosure OR PROVISION OF A COPY
OF THE REPORT, by itself
THEMSELVES, make the user a consumer reporting agency.
SECTION 4. The
introductory portion to 1214.3104 (1) and 1214.3104
(1) (b), Colorado Revised Statutes, 1991 Repl. Vol., as amended,
are amended, and the said 1214.3104 is further amended
BY THE ADDITION OF A NEW SUBSECTION, to read:
1214.3104. Disclosures
to consumers. (1) A consumer
reporting agency shall, upon written or verbal request and proper
identification of any consumer, clearly, and
accurately, AND IN A MANNER THAT IS UNDERSTANDABLE TO THE CONSUMER,
disclose to the consumer, in writing, all information in its files
at the time of the request pertaining to the consumer, including
but not limited to:
(b) A set of instructions, PRESENTED IN
A MANNER THAT IS UNDERSTANDABLE TO THE CONSUMER, describing how
information is presented on its written disclosure of the file;
and
(2) (a) A CONSUMER REPORTING AGENCY
SHALL NOTIFY A CONSUMER, BY LETTER SENT BY FIRSTCLASS MAIL,
THAT THE CONSUMER REPORTING AGENCY WILL PROVIDE THE CONSUMER WITH
A DISCLOSURE COPY OF HIS OR HER CONSUMER FILE AT NO CHARGE AND
A TOLLFREE TELEPHONE NUMBER TO CALL TO REQUEST SUCH COPY,
WHEN ONE OF THE FOLLOWING EVENTS OCCURS WITHIN A TWELVEMONTH
PERIOD:
(I) THE CONSUMER REPORTING AGENCY HAS
RECEIVED THREE CREDIT INQUIRIES PERTAINING TO THE CONSUMER; OR
(II) THE CONSUMER REPORTING AGENCY HAS
RECEIVED A REPORT THAT WOULD ADD NEGATIVE INFORMATION TO A CONSUMER'S
FILE.
(b) A CONSUMER REPORTING AGENCY NEED ONLY
SEND ONE LETTER TO A CONSUMER PER TWELVEMONTH PERIOD PURSUANT
TO PARAGRAPH (a) OF THIS SUBSECTION (2) EVEN IF MORE THAN ONE
SUCH EVENT OCCURS IN THAT PERIOD.
(c) ANY LETTER MAILED TO A CONSUMER PURSUANT
TO PARAGRAPH (a) OF THIS SUBSECTION (2) SHALL NOT CONTAIN ANY
IDENTIFYING INFORMATION PARTICULAR TO THAT CONSUMER INCLUDING,
BUT NOT LIMITED TO, SOCIAL SECURITY NUMBER, PLACE OF EMPLOYMENT,
DATE OF BIRTH, OR MOTHER'S MAIDEN NAME.
(d) ANY LETTER MAILED TO A CONSUMER PURSUANT
TO PARAGRAPH (a) OF THIS SUBSECTION (2) MAY BE A FORM LETTER;
EXCEPT THAT EACH LETTER SHALL ADVISE THE CONSUMER OF THE NUMBER
AND TYPE OF EVENTS THAT OCCURRED RELATING TO THE CONSUMER THAT
INITIATED THE LETTER.
(e) EACH CONSUMER REPORTING AGENCY SHALL,
UPON REQUEST OF A CONSUMER, PROVIDE THE CONSUMER WITH ONE DISCLOSURE
COPY OF HIS OR HER FILE PER YEAR AT NO CHARGE WHETHER OR NOT THE
CONSUMER HAS MADE THE REQUEST IN RESPONSE TO THE NOTIFICATION
REQUIRED IN PARAGRAPH (a) OF THIS SUBSECTION (2). IF THE CONSUMER
REQUESTS MORE THAN ONE DISCLOSURE COPY OF HIS OR HER FILE PER
YEAR PURSUANT TO THIS PARAGRAPH (e), THE CONSUMER REPORTING AGENCY
MAY CHARGE THE CONSUMER UP TO EIGHT DOLLARS FOR EACH ADDITIONAL
DISCLOSURE COPY.
SECTION 5. 1214.3105
(1), Colorado Revised Statutes, 1991 Repl. Vol., as amended, is
amended BY THE ADDITION OF A NEW PARAGRAPH to read:
1214.3105. Charges for
certain disclosures. (1) A
consumer reporting agency shall not impose a charge for:
(d) THE FIRST COPY OF A CONSUMER DISCLOSURE
PROVIDED TO A CONSUMER EACH CALENDAR YEAR PURSUANT TO SECTION
1214.3104 (2) (a).
SECTION 6. Article
14.3 of title 12, Colorado Revised Statutes, 1991 Repl. Vol.,
as amended, is amended BY THE ADDITION OF A NEW SECTION to read:
1214.3105.3. Reporting
of information prohibited. (1) EXCEPT
AS AUTHORIZED UNDER SUBSECTION (2) OF THIS SECTION, NO CONSUMER
REPORTING AGENCY SHALL MAKE ANY CONSUMER REPORT CONTAINING ANY
OF THE FOLLOWING ITEMS OF INFORMATION:
(a) CASES UNDER TITLE 11 OF THE UNITED
STATES CODE, OR UNDER THE FEDERAL BANKRUPTCY ACT THAT, FROM THE
DATE OF ENTRY OF THE ORDER FOR RELIEF OR THE DATE OF ADJUDICATION,
PREDATE THE REPORT BY MORE THAN TEN YEARS;
(b) SUITS AND JUDGMENTS THAT, FROM THE
DATE OF ENTRY, PREDATE THE REPORT BY MORE THAN SEVEN YEARS OR
BY MORE THAN THE GOVERNING STATUTE OF LIMITATIONS, WHICHEVER IS
THE LONGER PERIOD;
(c) PAID TAX LIENS THAT, FROM THE DATE
OF PAYMENT, PREDATE THE REPORT BY MORE THAN SEVEN YEARS;
(d) ACCOUNTS PLACED FOR COLLECTION OR
CHARGED TO PROFIT AND LOSS THAT PREDATE THE REPORT BY MORE THAN
SEVEN YEARS;
(e) RECORDS OF ARREST, INDICTMENT, OR
CONVICTION OF A CRIME THAT, FROM THE DATE OF DISPOSITION, RELEASE,
OR PAROLE, PREDATE THE REPORT BY MORE THAN SEVEN YEARS;
(f) ANY OTHER ADVERSE ITEM OF INFORMATION
THAT PREDATES THE REPORT BY MORE THAN SEVEN YEARS.
(2) THE PROVISIONS OF SUBSECTION (1) OF
THIS SECTION DO NOT APPLY TO THE CASE OF ANY CONSUMER REPORT TO
BE USED IN CONNECTION WITH:
(a) A CREDIT TRANSACTION INVOLVING, OR
THAT MAY REASONABLY BE EXPECTED TO INVOLVE, A PRINCIPAL AMOUNT
OF ONE HUNDRED FIFTY THOUSAND DOLLARS OR MORE;
(b) THE UNDERWRITING OF LIFE INSURANCE
INVOLVING, OR THAT MAY REASONABLY BE EXPECTED TO INVOLVE, A FACE
AMOUNT OF ONE HUNDRED FIFTY THOUSAND DOLLARS OR MORE; OR
(c) THE EMPLOYMENT OF AN INDIVIDUAL AT
AN ANNUAL SALARY THAT EQUALS OR IS REASONABLY EXPECTED TO EQUAL
SEVENTYFIVE THOUSAND DOLLARS OR MORE.
(3) A CONSUMER REPORTING AGENCY SHALL
NOT FURNISH FOR EMPLOYMENT PURPOSES, OR IN CONNECTION WITH A CREDIT
OR INSURANCE TRANSACTION OR A DIRECT MARKETING TRANSACTION, A
CONSUMER REPORT THAT CONTAINS MEDICAL INFORMATION ABOUT A CONSUMER
UNLESS THE CONSUMER CONSENTS TO THE FURNISHING OF THE REPORT.
(4) A CONSUMER REPORTING AGENCY SHALL
NOT INCLUDE, IN A CONSUMER REPORT MADE TO A PERSON REQUESTING
CREDIT INFORMATION PERTAINING TO A CONSUMER, THE NAMES OF ANY
OTHER PERSONS WHO HAVE REQUESTED CREDIT INFORMATION PERTAINING
TO THAT CONSUMER OR THE NUMBER OF SUCH INQUIRIES MADE MORE THAN
ONE YEAR PRECEDING THE DATE OF THE CONSUMER REPORT; EXCEPT THAT
SUCH INFORMATION SHALL BE RETAINED FOR TWO YEARS AND PROVIDED
TO THE CONSUMER AS PROVIDED IN THIS ARTICLE.
SECTION 7. 1214.3106
(1) and (4), Colorado Revised Statutes, 1991 Repl. Vol., as amended,
are amended, and the said 1214.3106 is further amended
BY THE ADDITION OF THE FOLLOWING NEW SUBSECTIONS, to read:
1214.3106. Procedure for
disputed information. (1) If
the completeness or accuracy of any item of information contained
in the consumer's file is disputed by the consumer and the consumer
notifies the consumer reporting agency directly of such dispute,
the agency shall reinvestigate the item free of charge and record
the current status of the disputed information on or before thirty
business days after the date the agency receives notice conveyed
by the consumer. THE CONSUMER REPORTING AGENCY SHALL PROVIDE THE
CONSUMER WITH THE OPTION OF SPEAKING DIRECTLY TO A REPRESENTATIVE
OF THE AGENCY TO NOTIFY THE AGENCY OF DISPUTED INFORMATION CONTAINED
IN THE CONSUMER'S FILE.
(4) If, after a reinvestigation under
subsection (1) of this section of any information disputed by
a consumer, the information is found to be inaccurate or cannot
be verified, the consumer reporting agency shall promptly delete
such information from the consumer's file, revise the file, PROVIDE
THE CONSUMER AND, AT THE REQUEST OF THE CONSUMER, ANY PERSON THAT,
WITHIN THE LAST TWELVE MONTHS, REQUESTED THE DISPUTED INFORMATION
WITH A REVISED CONSUMER REPORT INDICATING THAT IT IS A REVISED
CONSUMER REPORT, and refrain from reporting the information in
subsequent reports. THE CONSUMER REPORTING AGENCY SHALL ADVISE
THE CONSUMER THAT HE OR SHE HAS THE RIGHT TO HAVE A COPY OF THE
REVISED CONSUMER REPORT SENT BY THE CONSUMER REPORTING AGENCY
TO ANY PERSON THAT REQUESTED THE DISPUTED INFORMATION WITHIN THE
LAST TWELVE MONTHS.
(7) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE A PERSON WHO OBTAINS A CONSUMER REPORT FOR RESALE TO ALTER OR CORRECT ANY INACCURACY IN SUCH CONSUMER REPORT IF THE CONSUMER REPORT WAS NOT ASSEMBLED OR PREPARED BY SUCH PERSON.
(8) THE CONSUMER REPORTING AGENCY SHALL
PROVIDE A PERSON WHO PROVIDES CREDIT INFORMATION TO THE AGENCY
WITH THE OPTION TO SPEAK DIRECTLY WITH A REPRESENTATIVE OF THE
AGENCY OR TO SUBMIT CORRECTIONS TO PREVIOUSLY REPORTED INFORMATION
BY FACSIMILE OR OTHER AUTOMATED MEANS WHEN INACCURATE INFORMATION
THAT WAS REPORTED BY SUCH CREDIT INFORMATION PROVIDER APPEARS
ON A CONSUMER'S FILE. THE CONSUMER REPORTING AGENCY SHALL, IN
A PERIOD NOT TO EXCEED FIVE BUSINESS DAYS FROM THE RECEIPT OF
SUCH FAXED OR AUTOMATED INFORMATION REGARDING SUCH CORRECTIONS,
CORRECT SUCH INACCURACIES ON THE CONSUMER'S FILE AND, UPON REQUEST,
COMMUNICATE SUCH CORRECTIONS TO THE PERSON WHO SUBMITTED THE INITIAL
REQUEST FOR CORRECTIONS. THE CREDIT INFORMATION PROVIDER'S COMMUNICATION
SHALL INCLUDE INFORMATION ESTABLISHED BY THE CONSUMER REPORTING
AGENCY THAT IDENTIFIES HIM OR HER AS THE CREDIT INFORMATION PROVIDER
WHO PROVIDED THE ORIGINAL INACCURATE INFORMATION. NOTHING IN THIS
SUBSECTION (8) SHALL BE CONSTRUED TO PROHIBIT A CONSUMER REPORTING
AGENCY FROM CORRECTING INACCURATE INFORMATION IN A CONSUMER'S
FILE OR A CONSUMER REPORT AT ANY TIME.
SECTION 8. 1214.3108,
Colorado Revised Statutes, 1991 Repl. Vol., as amended, is amended
to read:
1214.3108. Violations.
(1) Any consumer reporting agency that willfully violates
any provision of this article, OR THE FEDERAL "FAIR CREDIT
REPORTING ACT", SEC. 1681c, AS AMENDED, shall be liable for
three times the amount of actual damages or one thousand dollars
FOR EACH INACCURATE ENTRY IN THE CONSUMER'S FILE THAT WAS DISPUTED
BY THE CONSUMER, whichever is greater, reasonable attorney fees,
and costs.
(2) (a) Any consumer reporting agency
which
THAT negligently violates this article, OR THE FEDERAL "FAIR
CREDIT REPORTING ACT", SEC. 1681c, AS AMENDED, shall be liable
for THE GREATER OF actual damages or five
hundred ONE THOUSAND dollars FOR
EACH INACCURATE ENTRY IN THE CONSUMER'S FILE THAT WAS DISPUTED
BY THE CONSUMER AND AFFECTS THE CONSUMER'S CREDITWORTHINESS, AS
DEFINED IN SECTION 1214.3104 (4.5), whichever
is greater, reasonable attorney fees,
and costs, A consumer reporting agency
has no liability under this subsection (2)
if within sixty
THIRTY days after receiving notice of dispute from a consumer,
in accordance with section 1214.3106, the consumer
reporting agency DOES NOT corrects
CORRECT the complained of item
ITEMS or activity
ACTIVITIES and DOES NOT sends
SEND the consumer AND, UPON REQUEST OF THE CONSUMER, ANY PERSON
WHO HAS REQUESTED THE CONSUMER INFORMATION, written notification
of such corrective action, in accordance with section 1214.3106
(6).
(b) ANY CONSUMER REPORTING AGENCY THAT
NEGLIGENTLY VIOLATES THIS ARTICLE, OR THE FEDERAL "FAIR CREDIT
REPORTING ACT", SEC. 1681c, AS AMENDED, SHALL BE LIABLE FOR
THE GREATER OF ACTUAL DAMAGES OR ONE THOUSAND DOLLARS FOR ALL
INACCURATE ENTRIES IN THE CONSUMER'S FILE THAT WERE DISPUTED BY
THE CONSUMER BUT DID NOT AFFECT THE CONSUMER'S CREDITWORTHINESS,
REASONABLE ATTORNEY FEES, AND COSTS, IF WITHIN THIRTY DAYS AFTER
RECEIVING NOTICE OF DISPUTE FROM A CONSUMER, IN ACCORDANCE WITH
SECTION 1214.3106, THE CONSUMER REPORTING AGENCY DOES
NOT CORRECT THE COMPLAINED OF ITEMS OR ACTIVITIES AND DOES NOT
SEND THE CONSUMER AND, IF REQUESTED BY THE CONSUMER, ANY PERSON
WHO HAS REQUESTED THE CONSUMER INFORMATION, WRITTEN NOTIFICATION
OF SUCH CORRECTIVE ACTION, IN ACCORDANCE WITH SECTION 1214.3106
(6).
(3) IN ADDITION TO THE DAMAGES ASSESSED
UNDER SUBSECTIONS (1) AND (2) OF THIS SECTION, IF, TEN DAYS AFTER
THE ENTRY OF ANY JUDGMENT FOR DAMAGES, THE CONSUMER'S FILE IS
STILL NOT CORRECTED BY THE CONSUMER REPORTING AGENCY, SUCH ASSESSED
DAMAGES SHALL BE INCREASED TO ONE THOUSAND DOLLARS PER DAY PER
INACCURATE ENTRY THAT REMAINS IN THE CONSUMER'S FILE UNTIL THE
INACCURATE ENTRY IS CORRECTED.
SECTION 9. Effective
date. This act shall take effect August 1, 1997.
SECTION 10. Safety
clause. The general assembly hereby finds, determines, and
declares that this act is necessary for the immediate preservation
of the public peace, health, and safety.
____________________________ ____________________________
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Joan M. Albi Judith M. Rodrigue
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE OF COLORADO