1.1                          A bill for an act
  1.2             relating to financial institutions; regulating use of 
  1.3             spousal credit history; requiring that creditors 
  1.4             consider a credit history in the name of the 
  1.5             applicant's spouse; requiring that creditors report a 
  1.6             credit history in the names of both spouses; proposing 
  1.7             coding for new law in Minnesota Statutes, chapter 325G.
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [325G.042] [CONSUMER CREDIT; EQUAL TREATMENT OF 
  1.10  SPOUSES.] 
  1.11     Subdivision 1.  [CONSIDERATION REQUIRED; SPOUSAL CREDIT 
  1.12  HISTORY.] To the extent that a creditor considers credit history 
  1.13  in evaluating the credit worthiness of similarly qualified 
  1.14  applicants for a similar type and amount of credit, in 
  1.15  evaluating an applicant's credit worthiness, a creditor shall 
  1.16  consider: 
  1.17     (1) the credit history, when available, of accounts 
  1.18  designated as accounts that the applicant and the applicant's 
  1.19  spouse are permitted to use or for which both are contractually 
  1.20  liable; 
  1.21     (2) at the applicant's request, any information the 
  1.22  applicant may present that tends to indicate that the credit 
  1.23  history being considered by the creditor does not accurately 
  1.24  reflect the applicant's creditworthiness; and 
  1.25     (3) at the applicant's request, the credit history, when 
  1.26  available, of any account reported in the name of the 
  2.1   applicant's spouse or former spouse that the applicant can 
  2.2   demonstrate accurately reflects the applicant's credit 
  2.3   worthiness. 
  2.4      Subd. 2.  [CREDIT REPORTING; EQUAL TREATMENT OF 
  2.5   SPOUSES.] (a) A creditor that furnishes credit information shall 
  2.6   designate: 
  2.7      (1) any new credit account to reflect the participation of 
  2.8   both spouses if the applicant's spouse is contractually liable 
  2.9   on the account, other than as a guarantor, surety, endorser, or 
  2.10  similar party; and 
  2.11     (2) any existing credit account to reflect such 
  2.12  participation, within 90 days after receiving a written request 
  2.13  to do so from one of the spouses. 
  2.14     (b) If a creditor furnishes credit information to a 
  2.15  consumer reporting agency concerning a credit account designated 
  2.16  to reflect the participation of both spouses, the creditor shall 
  2.17  furnish the information in a manner that will enable the agency 
  2.18  to provide access to the information in the name of each spouse. 
  2.19     (c) If a creditor furnishes credit information in response 
  2.20  to an inquiry concerning a credit account designated to reflect 
  2.21  the participation of both spouses, the creditor shall furnish 
  2.22  the information in the name of the spouse about whom the 
  2.23  information is requested. 
  2.24     Subd. 3.  [DEFENSE.] A creditor's failure to comply with 
  2.25  this section is not a violation if it results from an 
  2.26  inadvertent error, provided that the creditor promptly, and at 
  2.27  no cost to the applicant or borrower, rectified the error after 
  2.28  it was brought to the creditor's attention. 
  2.29     Subd. 4.  [ENFORCEMENT.] (a) Enforcement of this section is 
  2.30  under section 8.31, except that in a private cause of action 
  2.31  under section 8.31, subdivision 3a, the damages are limited to 
  2.32  $1,000 and the plaintiff has no right to recover costs of 
  2.33  investigation and attorney fees.  
  2.34     (b) No one may bring a private cause of action under this 
  2.35  section unless the individual has first in good faith attempted 
  2.36  to correct the problem with the party violating the section. 
  3.1      Subd. 5.  [COMPLIANCE WITH FEDERAL LAW.] Compliance with 
  3.2   the requirements of the Federal Consumer Credit Protection Act, 
  3.3   title VII (Equal Credit Opportunity), United States Code, title 
  3.4   15, section 1691 et seq., as amended and the regulations 
  3.5   promulgated under those sections dealing with the subject matter 
  3.6   of this section, shall be deemed to be compliance with this 
  3.7   section. 
  3.8      Subd. 6.  [DEFINITION OF ACCOUNT.] For purposes of this 
  3.9   section, the term "account" means an extension of consumer 
  3.10  credit and the word "use" in relation to an account refers only 
  3.11  to open-end credit. 
  3.12     Sec. 2.  [EFFECTIVE DATE.] 
  3.13     Section 1 is effective January 1, 1999.