Minnesota Session Laws - 1998, Regular Session

                            CHAPTER 327-H.F.No. 2309 
                  An act relating to financial institutions; regulating 
                  use of spousal credit history; requiring that 
                  creditors consider a credit history in the name of the 
                  applicant's spouse; requiring that creditors report a 
                  credit history in the names of both spouses; proposing 
                  coding for new law in Minnesota Statutes, chapter 325G.
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [325G.042] [CONSUMER CREDIT; EQUAL TREATMENT OF 
        SPOUSES.] 
           Subdivision 1.  [CONSIDERATION REQUIRED; SPOUSAL CREDIT 
        HISTORY.] To the extent that a creditor considers credit history 
        in evaluating the credit worthiness of similarly qualified 
        applicants for a similar type and amount of credit, in 
        evaluating an applicant's credit worthiness, a creditor shall 
        consider: 
           (1) the credit history, when available, of accounts 
        designated as accounts that the applicant and the applicant's 
        spouse are permitted to use or for which both are contractually 
        liable; 
           (2) at the applicant's request, any information the 
        applicant may present that tends to indicate that the credit 
        history being considered by the creditor does not accurately 
        reflect the applicant's creditworthiness; and 
           (3) at the applicant's request, the credit history, when 
        available, of any account reported in the name of the 
        applicant's spouse or former spouse that the applicant can 
        demonstrate accurately reflects the applicant's credit 
        worthiness. 
           Subd. 2.  [CREDIT REPORTING; EQUAL TREATMENT OF 
        SPOUSES.] (a) A creditor that furnishes credit information shall 
        designate: 
           (1) any new credit account to reflect the participation of 
        both spouses if the applicant's spouse is contractually liable 
        on the account, other than as a guarantor, surety, endorser, or 
        similar party; and 
           (2) any existing credit account to reflect such 
        participation, within 90 days after receiving a written request 
        to do so from one of the spouses. 
           (b) If a creditor furnishes credit information to a 
        consumer reporting agency concerning a credit account designated 
        to reflect the participation of both spouses, the creditor shall 
        furnish the information in a manner that will enable the agency 
        to provide access to the information in the name of each spouse. 
           (c) If a creditor furnishes credit information in response 
        to an inquiry concerning a credit account designated to reflect 
        the participation of both spouses, the creditor shall furnish 
        the information in the name of the spouse about whom the 
        information is requested. 
           Subd. 3.  [DEFENSE.] A creditor's failure to comply with 
        this section is not a violation if it results from an 
        inadvertent error, provided that the creditor promptly, and at 
        no cost to the applicant or borrower, rectified the error after 
        it was brought to the creditor's attention. 
           Subd. 4.  [ENFORCEMENT.] (a) Enforcement of this section is 
        under section 8.31, except that in a private cause of action 
        under section 8.31, subdivision 3a, the damages are limited to 
        $1,000 and the plaintiff has no right to recover costs of 
        investigation and attorney fees.  
           (b) No one may bring a private cause of action under this 
        section unless the individual has first in good faith attempted 
        to correct the problem with the party violating the section. 
           Subd. 5.  [COMPLIANCE WITH FEDERAL LAW.] Compliance with 
        the requirements of the Federal Consumer Credit Protection Act, 
        title VII (Equal Credit Opportunity), United States Code, title 
        15, section 1691 et seq., as amended and the regulations 
        promulgated under those sections dealing with the subject matter 
        of this section, shall be deemed to be in compliance with this 
        section. 
           Subd. 6.  [DEFINITION OF ACCOUNT.] For purposes of this 
        section, the term "account" means an extension of consumer 
        credit and the word "use" in relation to an account refers only 
        to open-end credit. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective January 1, 1999. 
           Presented to the governor March 20, 1998 
           Signed by the governor March 23, 1998, 10:55 a.m.