California Assembly Bill AB2118 Amended / Bill

 BILL NUMBER: AB 2118AMENDED BILL TEXT AMENDED IN ASSEMBLY MARCH 11, 2010 INTRODUCED BY Assembly Member Hernandez FEBRUARY 18, 2010 An act to amend Section 11713.20 of the Vehicle Code, relating to vehicles. LEGISLATIVE COUNSEL'S DIGEST AB 2118, as amended, Hernandez. Vehicles: dealers: consumer credit score disclosure. Existing law requires a dealer that obtains a consumer credit score from a consumer credit reporting agency for use in connection with an application for credit initiated by a consumer for the purchase or lease of a motor vehicle for personal, family, or household use, prior to the sale or lease of the vehicle, to provide to the consumer a notice containing information concerning credit scores in at least 10-point boldface type on a document separate from the sale or lease contract. This bill would  authorize the dealer, alternatively, to provide to the consumer a credit score disclosure notice that meets other form and content requirements   revise the form and content requirements for that notice and delete the requirement that the separate document be in   boldface type  . Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 11713.20 of the Vehicle Code is amended to read: 11713.20. (a) A dealer that obtains a consumer credit score, as defined in subdivision (b) of Section 1785.15.1 of the Civil Code, from a consumer credit reporting agency, as defined in subdivision (d) of Section 1785.3 of the Civil Code, for use in connection with an application for credit initiated by a consumer for the purchase or lease of a motor vehicle for personal, family, or household use, shall provide to the consumer, prior to the sale  or lease of the vehicle, either of the following:   (1) A credit score disclosure notice that meets the content requirements in Section 640.5(e)(1)(ii), and the form requirements in Section 640.5 (e)(2), of Title 16 of the Code of Federal Regulations, as that section may be amended.   (2) A notice containing the following information at least 10-point boldface type on a document separate from the sale or lease contract:   (A) The credit score obtained and used by the dealer and the name of the credit reporting agency providing the credit score to the dealer.   (B) The range of possible credit scores established by the credit reporting agency that provided the credit score.   (C) The following notice, which shall include the name, address, and telephone number of each credit reporting agency providing a credit score that was obtained and used by the dealer:   "NOTICE TO VEHICLE CREDIT APPLICANT   If the dealer obtains and uses a credit score from a credit reporting agency in connection with your application to finance the acquisition of a vehicle, the dealer must disclose the score to you.   The credit score is a computer generated summary calculated by a credit reporting agency at the time the dealer requests the score and is based on information the credit reporting agency has on file. The scores are based on data about your credit history and payment patterns. Credit scores are important because they are used in determining whether to extend credit. The score may also be used to determine the annual percentage rate you may be offered. Credit scores can change over time, depending on your conduct, how your credit history and payment patterns change, and how credit scoring technologies change. Credit scores may also vary from one credit reporting agency to another.   If you have questions about your credit score, contact the credit reporting agency at the address and telephone number provided. The credit reporting agency does not participate in the decision to take any action on your application for credit and is unable to provide you with specific reasons for any decision on the credit application.   If you have questions concerning credit terms relative to your purchase or lease of a vehicle, ask the dealer."   or lease of the vehicle, a credit score disclosure notice that meets the form and content requirements in Section 640.5(e) of Title 16 of the Code of Federal Regulations, as that section may be amended.   (b) The dealer shall provide the notice required by subdivision (a) in at least 10-point type on a document separate from the sale or lease contract.   (b)   (c)  This section does not require a dealer to provide more than one disclosure for each purchase or lease transaction.  (c)   (d)  This section does not apply to the purchase or lease of a motorcycle or an off-highway motor vehicle subject to identification under Section 38010.