Sec. B-1. 10 MRSA §1312, sub-§1-B is enacted to read:
1-B. Adverse action. "Adverse action" has the following meaning.
A. "Adverse action" has the same meaning as in Section 701(d)(6) of the federal Equal Credit Opportunity Act, Public Law 94-239, Section 2, 90 Stat. 252 (1976).
B. In addition to the meaning under paragraph A, "adverse action" means:
(1) A denial or cancellation of, an increase in any charge for or a reduction or other adverse or unfavorable change in the terms of coverage or amount of any insurance, existing or applied for, in connection with the underwriting of insurance;
(2) A denial of employment or any other decision for employment purposes that adversely affects any current or prospective employee;
(3) A denial or cancellation of, an increase in any charge for or any other adverse or unfavorable change in the terms of any license or benefit described in section 1313-A, subsection 1, paragraph C, subparagraph 4; or
(4) An action taken or determination made that is:
(a) In connection with an application that was made by, or a transaction that was initiated by, any consumer or in connection with a review of an account under section 1313-A, subsection 1, paragraph C, subparagraph (6), division (b); and
(b) Adverse to the interests of the consumer.
Sec. B-2. 10 MRSA §1312, sub-§3, as repealed and replaced by PL 1981, c. 610, §3, is repealed and the following enacted in its place:
3. Consumer report. "Consumer report" has the following meaning.
A. "Consumer report" means any written, oral or other communication of any information by a consumer reporting agency bearing on a consumer's creditworthiness, credit standing, credit capacity, debts, check-writing experience, insurability, character, general reputation, personal characteristics, including, but not limited to, information regarding the consumer's medical history or condition, that is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer's eligibility for:
(1) Credit or insurance to be used primarily for personal, family or household purposes;
(2) Employment purposes; or
(3) Other purposes authorized under section 1313-A.
B. "Consumer report" does not include:
(1) Any report containing information solely as to transactions or experiences between the consumer and the person making the report, but the term does include a report containing information obtained:
(a) By covert physical surveillance of the consumer, other than through observation or supervision in the ordinary course of the relationship; or
(b) Through examination of the consumer using a polygraph or other truth verification device;
(2) Any communication of information exempt under subparagraph (3) among persons related by common ownership or affiliated by corporate control;
(3) Any communication of other information among persons related by common ownership or affiliated by corporate control, if it is clearly and conspicuously disclosed to the consumer that the information may be communicated among such persons and the consumer is given the opportunity before the time that the information is initially communicated to direct that the information not be communicated among such persons;
(4) Any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device;
(5) Any report in which a person who has been requested by a 3rd party to make a specific extension of credit directly or indirectly to a consumer conveys the person's decision with respect to the request, if the 3rd party advises the consumer of the name and address of the person to whom the request was made and the person makes the disclosures to the consumer required under section 1320;
(6) Any transfer of information to the guarantor, insurer or other similar person participating in the same transaction, if the transmitting party advises the consumer of the name and address of the other person and that other person makes any disclosure required by section 1320;
(7) Any transfer of information collected by a creditor in connection with a consumer's credit application to a subsequent purchaser of the transaction, if the purchaser agrees to use the information only in connection with the purchased transaction; or
(8) Any transfer of information collected by an insurer in connection with a consumer's insurance application or claim to a reinsurer or an insurer with potential liability under the same claim, if the recipient agrees to use the information only in connection with the insurance transaction.
C. "Consumer report" includes a communication of information of the type described by this subsection, notwithstanding the fact that:
(1) The information is used other than for a purpose referred to in paragraph A, if the information was in whole or in part collected, used or expected to be used for a purpose referred to in paragraph A; or
(2) The information is maintained, collected and used only to alert the user to the need for further investigation, but is not intended to be used in whole or in part to deny or increase the charge for credit, insurance, employment or other benefit.
Sec. B-3. 10 MRSA §1312, sub-§4-A is enacted to read:
4-A. Credit or insurance transaction that is not initiated by the consumer. "Credit or insurance transaction that is not initiated by the consumer" does not include the use of a consumer report by a person with which the consumer has an account or insurance policy, for purposes of either:
A. Reviewing the account or insurance policy; or
B. Collecting the account.
Sec. B-4. 10 MRSA §1312, sub-§6-A is enacted to read:
6-A. Firm offer of credit or insurance. "Firm offer of credit or insurance" means any offer of credit or insurance to a consumer that will be honored if the consumer is determined, based on information in a consumer report on the consumer, to meet the specific criteria used to select the consumer for the offer, except that the offer may be further conditioned on one or more of the following:
A. The consumer being determined, based on information in the consumer's application for the credit or insurance, to meet specific criteria bearing on creditworthiness or insurability, as applicable, that are established:
(1) Before selection of the consumer for the offer; and
(2) For the purpose of determining whether to extend credit or insurance pursuant to the offer;
B. Verification:
(1) That the consumer continues to meet the specific criteria used to select the consumer for the offer, by using information in a consumer report on the consumer, information in the consumer's application for the credit or insurance or other information bearing on the creditworthiness or insurability of the consumer; or
(2) Of the information in the consumer's application for the credit or insurance, to determine that the consumer meets the specific criteria bearing on creditworthiness or insurability; or
C. The consumer furnishing any collateral that is a requirement for the extension of the credit or insurance that was:
(1) Established before selection of the consumer for the offer of credit or insurance; and
(2) Disclosed to the consumer in the offer of credit or insurance.
Sec. B-5. 10 MRSA §1313, as repealed and replaced by PL 1981, c. 610, §5, is repealed.
Sec. B-6. 10 MRSA §1313-A is enacted to read:
§1313-A. Permissible purposes of credit reports
1. Permissible purposes of credit reports. Subject to subsection 3, a consumer reporting agency may furnish a consumer report under the following circumstances only:
A. In response to the order of a court having jurisdiction to issue such an order, or a subpoena issued in connection with proceedings before a grand jury;
B. In accordance with the written instructions of the consumer to whom the consumer report relates;
C. To a person that the consumer reporting agency has reason to believe:
(1) Intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer;
(2) Intends to use the information for employment purposes;
(3) Intends to use the information in connection with the underwriting of insurance involving the consumer;
(4) Intends to use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status;
(5) Intends to use the information, as a potential investor or service or as a current insurer, in connection with a valuation of or an assessment of the credit or prepayment risks associated with an existing credit obligation; or
(6) Otherwise has a legitimate business need for the information:
(a) In connection with a business transaction that is initiated by the consumer; or
(b) To review an account to determine whether the consumer continues to meet the terms of the account; or
D. To the administrator pursuant to section 1328.
2. Conditions for furnishing and using consumer reports for employment purposes. This subsection applies to the furnishing and use of a consumer report for employment purposes.
A. A consumer reporting agency may furnish a consumer report for employment purposes only if:
(1) The person who obtains the report from the agency certifies to the agency that:
(a) The person has complied with paragraph B with respect to the consumer report, and the person will comply with section 1320 with respect to the consumer report if section 1320 becomes applicable; and
(b) Information from the consumer report will not be used in violation of any applicable federal or state equal employment opportunity law or regulation; and
(2) The consumer reporting agency provides with the report a summary of the consumer's rights under this Act.
B. A person may not procure a consumer report or cause a consumer report to be procured for employment purposes with respect to any consumer, unless:
(1) A clear and conspicuous disclosure has been made in writing to the consumer before the report is procured or caused to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes; and
(2) The consumer has authorized in writing the procurement of the report by that person.
C. In using a consumer report for employment purposes, before taking any adverse action based in whole or in part on the report, the person intending to take the adverse action shall provide to the consumer to whom the report relates:
(1) A copy of the report; and
(2) A description in writing of the rights of the consumer under this Act.
3. Furnishing consumer reports in connection with credit or insurance transactions that are not initiated by the consumer. The furnishing of a consumer report in connection with a credit or insurance transaction that is not initiated by the consumer must be in accordance with this subsection.
A. A consumer reporting agency may furnish a consumer report relating to any consumer pursuant to subsection 1, paragraph C, subparagraph (1) or (3) in connection with any credit or insurance transaction that is not initiated by the consumer only if:
(1) The consumer authorizes the agency to provide the report to the person requesting the report; or
(2) The transaction consists of a firm offer of credit or insurance; the consumer reporting agency has complied with Section 604(e) of the federal Fair Credit Reporting Act; and there is not in effect an election by the consumer, made in accordance with Section 604(e) of the federal Fair Credit Reporting Act, to have the consumer's name and address excluded from lists of names provided by the agency pursuant to this paragraph.
B. A person may receive pursuant to paragraph A, subparagraph (2) only:
(1) The name and address of a consumer;
(2) An identifier that is not unique to the consumer and that is used by the person solely for the purpose of verifying the identity of the consumer; and
(3) Other information pertaining to a consumer that does not identify the relationship or experience of the consumer with respect to a particular creditor or other entity.
Sec. B-7. 10 MRSA §1316, sub-§2, as amended by PL 1991, c. 453, §1 and affected by §10, is further amended to read:
2. Methods. The disclosures required under section 1315 must be made to the consumer by one or more of the following methods:
A. In person, if the consumer appears in person and furnishes proper identification, and, in any such case, the consumer must be permitted a personal visual inspection of the consumer's file and, upon the consumer's request, must be furnished copies of any report at a charge not to exceed the agency's actual costs for photocopying or otherwise producing the report;
B. By telephone, if the consumer presents proper identification, and the toll charge, if any, for the telephone call is prepaid by or charged directly to the consumer; or
C. By promptly mailing a copy of the consumer's file to the consumer, if the consumer has made a written request by ordinary mail with proper identification, at a charge not to exceed the agency's actual costs for photocopying or otherwise producing the report and mailing it.
In the event that the request for a copy of a consumer's file is made within 60 days after an adverse credit determination, the cost of the disclosure must be paid by the consumer reporting agency. The agency may not be held responsible for improper disclosure of a consumer's file resulting from improper delivery by the United States Postal Service when the agency properly mailed the file, correctly addressed, to the consumer who is the subject of the file nor may the agency be held responsible for improper telephone disclosures under paragraph B when the agency used reasonable procedures to ensure proper identification of the consumer who called for the disclosure.
Upon the request of the consumer, a consumer reporting agency shall make all disclosures pursuant to section 1315 once during any 12-month period without charge to that consumer if the consumer certifies in writing that the consumer is unemployed and intends to apply for employment in the 60-day period beginning on the date on which the certification is made, is a recipient of public welfare assistance or has reason to believe that the file on the consumer at the agency contains inaccurate information due to fraud.
Sec. B-8. 10 MRSA §1320, sub-§1, as amended by PL 1981, c. 610, §§9 and 10, is repealed.
Sec. B-9. 10 MRSA §1320, sub-§1-B is enacted to read:
1-B. Duties of users taking adverse actions on the basis of information contained in consumer reports. If a person takes an adverse action with respect to a consumer that is based in whole or in part on any information contained in a consumer report, the person shall:
A. Provide written or electronic notice of the adverse action to the consumer;
B. Provide to the consumer in writing or electronically:
(1) The name, address and telephone number of the consumer reporting agency, including a toll-free telephone number established by the agency that furnished the report to the person if the agency compiles and maintains files on consumers on a nationwide basis; and
(2) A statement that the consumer reporting agency did not make the decision to take the adverse action and is unable to provide the consumer the specific reasons why the adverse action was taken; and
C. Provide to the consumer a written or electronic notice of the consumer's right:
(1) To obtain under section 1316 a free copy of a consumer report on the consumer from the consumer reporting agency. The notice must include an indication of the 60-day period under section 1316 for obtaining the copy; and
(2) To dispute, under section 1317, with a consumer reporting agency the accuracy or completeness of any information in a consumer report furnished by the agency.
Sec. B-10. 10 MRSA §1320-A is enacted to read:
§1320-A. Responsibilities of persons who furnish information to consumer reporting agencies
1. Duty of furnishers of information to provide accurate information. A person who furnishes information to consumer reporting agencies has the following duties.
A. A person may not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reason to know that the information is inaccurate.
B. A person may not furnish information relating to a consumer to any consumer reporting agency if:
(1) The person has been notified by the consumer, at the address specified by the person for such notices, that specific information is inaccurate; and
(2) The information is, in fact, inaccurate.
C. A person who clearly and conspicuously specifies to the consumer an address for notices referred to in paragraph B is not subject to paragraph A; however, nothing in paragraph B requires a person to specify such an address.
2. Duty to correct and update information. A person who regularly and in the ordinary course of business furnishes information to one or more consumer reporting agencies about the person's transactions or experiences with any consumer and who has furnished to a consumer reporting agency information that the person determines is not complete or accurate has a duty to:
A. Promptly notify the consumer reporting agency of that determination and provide to the agency any corrections to that information, or any additional information, that is necessary to make the information provided by the person to the agency complete and accurate; and
B. May not thereafter furnish to the agency any of the information that remains incomplete and inaccurate.
3. Duty to provide notice of dispute. If the completeness or accuracy of information furnished by a person to a consumer reporting agency is disputed to the person by a consumer, the person may not furnish the information to any consumer reporting agency without notice that the information is disputed by the consumer.
4. Duty to provide notice of closed accounts. A person who regularly and in the ordinary course of business furnishes information to a consumer reporting agency regarding a consumer who has a credit account with that person shall notify the agency of the voluntary closure of the account by the consumer, in information regularly furnished for the period in which the account is closed.
5. Duty to provide notice of delinquency of accounts. A person who furnishes information to a consumer reporting agency regarding a delinquent account being placed for collection, charged to profit or loss or subjected to any similar action shall, not later than 90 days after furnishing the information, notify the agency of the month and year of the commencement of the delinquency that immediately preceded the action.
6. Duties of furnishers of information upon notice of dispute. After receiving notice of a dispute with regard to the completeness or accuracy of information provided by a person to a consumer reporting agency, the person shall:
A. Conduct an investigation with respect to the disputed information; and
B. Review all relevant information provided by the consumer reporting agency.
7. Deadline. A person shall complete all investigations, reviews and reports required under subsection 6 regarding information provided by the person to a consumer reporting agency before the expiration of the period under section 1317 within which the consumer reporting agency is required to complete actions required by that section regarding that information.
8. Limitation on liability. Sections 1322 and 1323 do not apply to any failure to comply with this section, except as provided in section 1328.
9. Limitation on enforcement. This section must be enforced exclusively under section 1328 by the administrator.
Sec. B-11. 10 MRSA §1321, sub-§1, as repealed and replaced by PL 1981, c. 610, §12, is amended to read:
1. Procedures to avoid violations. Every consumer reporting agency shall maintain reasonable procedures designed to limit the furnishing of consumer reports to the purposes listed under section 1313 1313-A. These procedures shall must require that prospective users of the information identify themselves, certify the purposes for which the information is sought, and certify that the information will be used for no other purpose. Every consumer reporting agency shall make a reasonable effort to verify the identity of a new prospective user and the uses certified by such prospective user prior to furnishing such user a consumer report. No consumer reporting agency may furnish a consumer report to any person if it has reasonable grounds for believing that the consumer report will not be used for a purpose listed in section 1313 1313-A.
Sec. B-12. 10 MRSA §1326, as amended by PL 1977, c. 677, §14, is further amended to read:
§1326. Unauthorized disclosures by officers or employees
Notwithstanding the provisions of Title 17-A, section 4-A, any officer or employee of a consumer reporting agency who knowingly and intentionally provides information concerning an individual from the agency's files to a person not authorized, within the meaning of sections 1313 section 1313-A and section 1314, subsection 1, to receive that information shall must be fined not more than $5,000 or imprisoned for not more than one year, or both.
Sec. B-13. Effective date. This Part takes effect September 30, 1997. Any person or other entity that is subject to the requirements of this Part may, at its option, comply with any provision of this Part prior to September 30, 1997, in which case each of the corresponding provisions of this Part are fully applicable to that person or entity.
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