HOUSE BILL No. 5226


     October 7, 1997, Introduced by Reps. Brown, Bogardus, Cropsey, Schermesser, Callahan, Hale, Quarles, McBryde, Leland, DeHart, LaForge, Tesanovich, Kaza, Cherry, Schauer, Gire and Wojno and referred to the Committee on Consumer Protection.


        A bill to amend 1976 PA 331, entitled

   "Michigan consumer protection act,"

   (MCL 445.901 to 445.922) by adding section 3c.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 3C.  (1) AS USED IN THIS SECTION:

 2         (A) "INFORMATION ADVERSE TO THE CREDIT RATING OF ANY

 3    INDIVIDUAL" INCLUDES, BUT IS NOT LIMITED TO, INFORMATION THAT AN

 4    INDIVIDUAL HAS DEFAULTED ON A LOAN.

 5         (B) "CONSUMER REPORTING AGENCY" MEANS A PERSON WHO FOR A

 6    MONETARY FEE OR A DUE, OR ON A COOPERATIVE NONPROFIT BASIS, REGU-

 7    LARLY ENGAGES IN WHOLE OR IN PART IN THE PRACTICE OF ASSEMBLING

 8    OR EVALUATING CONSUMER CREDIT INFORMATION OR OTHER INFORMATION ON

 9    CONSUMERS FOR THE PURPOSES OF FURNISHING CONSUMER REPORTS TO

10    THIRD PARTIES.




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 1         (2) A CONSUMER REPORTING AGENCY SHALL NOT REPORT TO ANOTHER

 2    PERSON INFORMATION ADVERSE TO THE CREDIT RATING OF ANY INDIVIDUAL

 3    UNLESS THE CONSUMER REPORTING AGENCY HAS CONTACTED THE INDIVIDUAL

 4    AND THE INDIVIDUAL HAS VERIFIED THAT THE INFORMATION IS ACCURATE

 5    AND CURRENT, OR, IF THE INDIVIDUAL DENIES THAT THE INFORMATION IS

 6    CURRENT AND ACCURATE OR THE INDIVIDUAL CANNOT BE REACHED FOR VER-

 7    IFICATION, THE CONSUMER REPORTING AGENCY HAS INVESTIGATED THE

 8    INFORMATION AND DETERMINED THAT IT IS ACCURATE AND CURRENT.








































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