Legislation 2011-Removing Barriers and Building Opportunity

We can spend time, money and energy creating new barriers for Colorado's struggling families or we can find ways to encourage movement towards economic security. From task force member Representative Kagan comes a bill to remove barriers.

BILL HB11-1127

Short Title: Fair Use Of Consumer Credit Information
Sponsors: KAGAN / CARROLL

The bill specifies the purposes for which consumer credit information (i.e., consumer credit reports and credit scores) can be used in certain situations. Section 1 of the bill restricts an employer's use of consumer credit information for employment purposes and requires an employer to disclose to an employee or applicant for employment when the employer uses the employee's or applicant's consumer credit information to take adverse action against the employee or applicant and the particular credit information upon which the employer relied. Section 2 amends the current law regarding the permissible use of credit information by an insurer offering personal lines of property and casualty insurance (insurer) as follows:
* Makes the filing of actuarial justification mandatory for insurers that use insurance scores to underwrite and rate risk; and
* Clarifies that "adverse action", with regard to insurance, includes denying a consumer a discount or placing a consumer in a higher tier. Section 3 removes a separate statutory section pertaining to the use of credit information in automobile underwriting or rating, and instead requires automobile insurers to comply with the same provisions governing use of credit information as property and casualty insurers. Current law requires a consumer reporting agency (agency) to notify a consumer when the agency receives information that would add negative information to the consumer's file. Section 4 adds to the notification requirement consumers who are cosigners to a debt. Section 5 allows landlords to use consumer credit information of a potential tenant (applicant) only to evaluate the applicant's payment history for prior tenancies. When an applicant's consumer credit information adversely impacts the landlord's decision, section 4 also requires landlords to disclose this fact to the applicant.

Status
01/21/2011 Introduced In House - Assigned to State, Veterans, & Military Affairs