District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill B25-0118 Compare Versions

Version 1 (Old)

Version 2 (New)

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	1	+	ENGROSSED ORIGINAL
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8		-	AN ACT
9		-
10		-	___________
11		-
12		-	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
13		-
14		-	_______________________
15		-
16		-
17		-	To amend Chapter 38 of Title 28 of the District of Columbia Official Code to require credit
18		-	reporting agencies to accept a personal statement from a consumer indicating the
19		-	consumer experienced financial hardship resulting from a public health emergency, to
20		-	prohibit users of credit reports from taking into consideration adverse information in a
21		-	report that was the result of the consumer’s action or inaction that occurred during the
22		-	public health emergency, to require credit reporting agencies to notify residents of the
23		-	right to request a personal statement, and to provide for a civil action for violations of
24		-	these requirements.
25		-
26		-	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
27		-	act may be cited as the “Public Health Emergency Credit Alert Amendment Act of 2023”.
28		-
29		-	Sec. 2. Chapter 38 of Title 28 of the District of Columbia Official Code is amended as
30		-	follows:
31		-	(a) The table of contents is amended by adding a new subchapter designation to read as
32		-	follows:
33		-	“Subchapter IV. Public Health Emergency Credit Alert.
34		-	“28-3871. Public health emergency credit alert.”.
35		-	(b) Section 28-3861(2) is amended to read as follows:
36		-	“(2) “Credit report” means any written, oral, or other communication of any
37		-	information by a credit reporting agency bearing on a consumer’s creditworthiness, credit
38		-	standing, credit capacity, character, general reputation, personal characteristics, or mode of
39		-	living, which is used or expected to be used or collected in whole or in part for the purpose of
40		-	serving as a factor in establishing the consumer’s eligibility for:
41		-	“(A) Credit or insurance to be used primarily for person, family, or
42		-	household purposes;
43		-	“(B) Employment purposes; or
44		-	“(C) Any other purpose authorized under the Fair Credit Reporting Act,
45		-	approved October 26, 1970 (84 Stat. 1127; 15 U.S.C. § 1681 et seq.).”.
46		-	(c) A new subchapter IV is added to read as follows: ENROLLED ORIGINAL
	8	+	A BILL 1
	9	+	2
	10	+	25-118 3
	11	+	4
	12	+	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 5
	13	+	6
	14	+	________________ 7
	15	+	8
	16	+	9
	17	+	To amend Chapter 38 of Title 28 of the District of Columbia Official Code to require credit 10
	18	+	reporting agencies to accept a personal statement from a consumer indicating the 11
	19	+	consumer experienced financial hardship resulting from a public health emergency; to 12
	20	+	prohibit users of credit reports from taking into consideration adverse information in a 13
	21	+	report that was the result of the consumer’s action or inaction that occurred during the 14
	22	+	public health emergency; to require credit reporting agencies to notify residents of the 15
	23	+	right to request a personal statement; and to provide for a civil action for violations of 16
	24	+	these requirements. 17
	25	+	18
	26	+	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 19
	27	+	act may be cited as the “Public Health Emergency Credit Alert Amendment Act of 2023”. 20
	28	+	Sec. 2. Chapter 38 of Title 28 of the District of Columbia Official Code is amended as 21
	29	+	follows: 22
	30	+	(a) The table of contents is amended by adding a new subchapter designation to read as 23
	31	+	follows: 24
	32	+	“Subchapter IV. Public Health Emergency Credit Alert. 25
	33	+	“28-3871. Public health emergency credit alert. 26
	34	+	(b) Section 28-3861(2) is amended to read as follows: 27
	35	+	“(2) “Credit report” means any written, oral, or other communication of any 28
	36	+	information by a credit reporting agency bearing on a consumer’s creditworthiness, credit 29 ENGROSSED ORIGINAL
47	37
48	38
49	39
50	40
51	41		2
52	42
53		-	“Subchapter IV. Public Health Emergency Credit Alert.
54		-	“§ 28-3871. Public health emergency credit alert.
55		-	“(a)(1) If a consumer reports in good faith that the consumer has experienced financial
56		-	hardship resulting directly or indirectly from a public health emergency declared pursuant to § 7-
57		-	2304.01, a credit reporting agency maintaining a file on the consumer shall accept and include in
58		-	that file a personal statement furnished by the consumer indicating that the consumer has been
59		-	financially impacted by the public health emergency.
60		-	“(2) A credit reporting agency shall provide that personal statement, along with
61		-	any credit report provided by the agency, beginning on the date the credit reporting agency
62		-	receives the personal statement, unless the consumer requests that the personal statement be
63		-	removed.
64		-	“(b) This section shall not apply to a federal credit union, as defined by 12 U.S.C. §
65		-	1752(1), a national bank, as defined by 12 U.S.C. § 25b(a)(1), or a federal savings association, as
66		-	defined by 12 U.S.C. § 1462(3); except, that an exception granted by this subsection shall not
67		-	apply to any entity to which the savings clause at 12 U.S.C. § 25b(b)(2) applies.
68		-	“(c)(1) No user of a credit report shall consider adverse information in a report that was
69		-	the result of an action or inaction of a consumer that occurred during, and was directly or
70		-	indirectly the result of, a public health emergency declared pursuant to § 7-2304.01, if:
71		-	(A) The credit report includes a personal statement pursuant to subsection
72		-	(a) of this section; or
73		-	(B) The consumer provides a written statement to the user of a credit
74		-	report that indicates in good faith that the consumer has experienced financial hardship resulting
75		-	directly or indirectly from the public health emergency declared pursuant to § 7-2304.01, before
76		-	the user of the credit report makes a determination.
77		-	“(2) If the consumer receives a denial or rejection by the user of a credit report
78		-	due to adverse information that was the result of an action or inaction of a consumer that
79		-	occurred during, and was directly or indirectly the result of, the public health emergency
80		-	declared pursuant to § 7-2304.01, the user must inform the consumer of the consumer’s right to
81		-	provide a written statement pursuant to paragraph (1) of this subsection.
82		-	“(d) When a District resident requests a copy of a credit report pursuant to 15 U.S.C. §
83		-	1681j, the entity providing the credit report must notify the resident of the right to request that a
84		-	personal statement accompany the credit report as set forth in subsection (a) of this section.
85		-	“(e) If a credit reporting agency willfully fails to comply with any requirement imposed
86		-	under this section, the affected consumer may bring a civil action against the agency in the
87		-	Superior Court for the District of Columbia to recover:
88		-	“(1) Any actual damages sustained by the consumer as a result of the failure or
89		-	damages of not less than $100 and not more than $1,000;
90		-	“(2) Such amount of punitive damages as the court may allow; and ENROLLED ORIGINAL
	43	+	standing, credit capacity, character, general reputation, personal characteristics, or mode of 30
	44	+	living, which is used or expected to be used or collected in whole or in part for the purpose of 31
	45	+	serving as a factor in establishing the consumer’s eligibility for: 32
	46	+	“(A) Credit or insurance to be used primarily for person, family, or household 33
	47	+	purposes; 34
	48	+	“(B) Employment purposes; or 35
	49	+	“(C) Any other purpose authorized under the Fair Credit Reporting Act, approved 36
	50	+	October 26, 1970 (84. Stat. 1127; 15 U.S.C. § 1681 et seq.).”. 37
	51	+	(c) A new subchapter IV is added to read as follows: 38
	52	+	“Subchapter IV. Public Health Emergency Credit Alert. 39
	53	+	“§ 28-3871. Public health emergency credit alert. 40
	54	+	“(a)(1) If a consumer reports in good faith that the consumer has experienced financial 41
	55	+	hardship resulting directly or indirectly from a public health emergency declared pursuant to § 7-42
	56	+	2304.01, a credit reporting agency maintaining a file on the consumer shall accept and include in 43
	57	+	that file a personal statement furnished by the consumer indicating that the consumer has been 44
	58	+	financially impacted by the public health emergency. 45
	59	+	“(2) A credit reporting agency shall provide that personal statement, along with 46
	60	+	any credit report provided by the agency, beginning on the date the credit reporting agency 47
	61	+	receives the personal statement, unless the consumer requests that the personal statement be 48
	62	+	removed. 49 ENGROSSED ORIGINAL
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97		-	“(3) In the case of any successful action brought under this subsection, the costs
98		-	of the action together with reasonable attorney’s fees as determined by the court.
99		-	“(f)(1) The Attorney General may petition the Superior Court of the District of Columbia
100		-	to obtain temporary or permanent injunctive relief prohibiting the use of a method, practice, or
101		-	act that violates this section and requiring the violator to take affirmative action, including the
102		-	restitution of money.
103		-	“(2) In addition, in an action under this subsection, the Attorney General may
104		-	recover:
105		-	“(A) A civil penalty not to exceed $1,000 for each violation of this
106		-	section; and
107		-	“(B) Reasonable attorney’s fees and costs of the action.
108		-	“(g) The following terms shall have the same meaning as set forth in § 28-3861:
109		-	“(1) Consumer;
110		-	“(2) Credit report; and
111		-	“(3) Credit reporting agency.
112		-	“(h) This section shall not be construed in a manner inconsistent with the Fair Credit
113		-	Reporting Act, approved October 26, 1970 (84 Stat. 1127; 15 U.S.C. § 1681 et seq.), or any other
114		-	federal law or regulation.”.
115		-
116		-	Sec. 3. Fiscal impact statement.
117		-	The Council adopts the fiscal impact statement in the committee report as the fiscal
118		-	impact statement required by section 4a of the General Legislative Procedures Act of 1975,
119		-	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).
120		-
121		-	Sec. 4. Effective date.
122		-	This act shall take effect following approval by the Mayor (or in the event of veto by the
123		-	Mayor, action by the Council to override the veto), a 30-day period of congressional review as
124		-	provided in sections 602(c)(1) of the District of Columbia Home Rule Act, approved December
125		-
126		-
127		-
128		-
129		-
130		-
131		-
132		-
133		-
134		-	ENROLLED ORIGINAL
	69	+	“(b) This section shall not apply to a federal credit union, as defined by 12 U.S.C. § 50
	70	+	1752(1), a national bank, as defined by 12 U.S.C. § 25b(a)(1), or a federal savings association, as 51
	71	+	defined by 12 U.S.C. § 1462(3); except, that an exception granted by this subsection shall not 52
	72	+	apply to any entity to which the savings clause at 12 U.S.C. § 25b(b)(2) applies. 53
	73	+	“(c)(1) No user of a credit report shall consider adverse information in a report that was 54
	74	+	the result of an action or inaction of a consumer that occurred during, and was directly or 55
	75	+	indirectly the result of, a public health emergency declared pursuant to § 7-2304.01, if: 56
	76	+	(A) The credit report includes a personal statement pursuant to subsection 57
	77	+	(a) of this section; or 58
	78	+	(B) The consumer provides a written statement to the user of a credit 59
	79	+	report that indicates in good faith that the consumer has experienced financial hardship resulting 60
	80	+	directly or indirectly from the public health emergency declared pursuant to § 7-2304.01, before 61
	81	+	the user of the credit report makes a determination. 62
	82	+	“(2) If the consumer receives a denial or rejection by the user of a credit report 63
	83	+	due to adverse information that was the result of an action or inaction of a consumer that 64
	84	+	occurred during, and was directly or indirectly the result of, the public health emergency 65
	85	+	declared pursuant to § 7-2304.01, the user must inform the consumer of the consumer’s right to 66
	86	+	provide a written statement pursuant to paragraph (1) of this subsection. 67 ENGROSSED ORIGINAL
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141		-	24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of
142		-	Columbia Register.
143		-
144		-
145		-
146		-	______________________________
147		-	Chairman
148		-	Council of the District of Columbia
	93	+	“(d) When a District resident requests a copy of a credit report pursuant to 15 U.S.C. § 68
	94	+	1681j, the entity providing the credit report must notify the resident of the right to request that a 69
	95	+	personal statement accompany the credit report as set forth in subsection (a) of this section. 70
	96	+	“(e) If a credit reporting agency willfully fails to comply with any requirement imposed 71
	97	+	under this section, the affected consumer may bring a civil action against the agency in the 72
	98	+	Superior Court for the District of Columbia to recover:. 73
	99	+	“(1) Any actual damages sustained by the consumer as a result of the failure or 74
	100	+	damages of not less than $100 and not more than $1,000; 75
	101	+	“(2) Such amount of punitive damages as the court may allow; and 76
	102	+	“(3) In the case of any successful action brought under this subsection, the costs 77
	103	+	of the action together with reasonable attorney’s fees as determined by the court. 78
	104	+	“(f)(1) The Attorney General may petition the Superior Court of the District of Columbia 79
	105	+	to obtain temporary or permanent injunctive relief prohibiting the use of a method, practice, or 80
	106	+	act that violates this section and requiring the violator to take affirmative action, including the 81
	107	+	restitution of money. 82
	108	+	“(2) In addition, in an action under this subsection, the Attorney General may 83
	109	+	recover: 84
	110	+	“(A) A civil penalty not to exceed $1,000 for each violation of this 85
	111	+	section; and 86
	112	+	“(B) Reasonable attorney’s fees and costs of the action. 87 ENGROSSED ORIGINAL
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153	118
154		-	_________________________________
155		-	Mayor
156		-	District of Columbia
157		-
158		-
159		-
160		-
	119	+	“(g) The following terms shall have the same meaning as set forth in § 28-3861: 88
	120	+	“(1) “Consumer”; 89
	121	+	“(2) “Credit report”; and 90
	122	+	“(3) “Credit reporting agency”. 91
	123	+	“(h) This section shall not be construed in a manner inconsistent with the Fair Credit 92
	124	+	Reporting Act, approved October 26, 1970 (84. Stat. 1127; 15 U.S.C. § 1681 et seq.), or any 93
	125	+	other federal law or regulation.”. 94
	126	+	Sec. 3. Fiscal impact statement. 95
	127	+	The Council adopts the fiscal impact statement in the committee report as the fiscal 96
	128	+	impact statement required by section 4a of the General Legislative Procedures Act of 1975, 97
	129	+	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 98
	130	+	Sec. 4. Effective date. 99
	131	+	This act shall take effect following approval by the Mayor (or in the event of veto by the 100
	132	+	Mayor, action by the Council to override the veto), a 30-day period of congressional review as 101
	133	+	provided in sections 602(c)(1) of the District of Columbia Home Rule Act, approved December 102
	134	+	24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 103
	135	+	Columbia Register. 104