HB 1409

Bill Subjects

Abstract

Provides that a consumer may provide to a creditor a note or other written certification that: (1) is signed by a health care provider; and (2) indicates that the consumer was hospitalized or under medical care for a specified period in connection with a medical condition or an illness. Provides that if the creditor receives the note or certification not later than 30 days after the end date of the period of hospitalization or medical care, the creditor shall: (1) promptly notify each consumer reporting agency to which the creditor has reported a delinquency that was incurred by the consumer at any time during the period: (A) beginning 15 days before the start date of the consumer's hospitalization or medical care; and (B) ending 15 days after the end date of the consumer's hospitalization or medical care; and (2) request that the consumer reporting agency delete the record of the delinquency from the consumer's file. Provides that if certain delinquent account actions have been taken with respect to the account, the creditor shall: (1) promptly notify any third party furnisher of information to credit reporting agencies; and (2) request the third party furnisher to request any consumer reporting agency to which the information about the delinquent account action was furnished to delete the record of the delinquent account action from the consumer's file. Provides that a creditor may not report to a consumer reporting agency any delinquency incurred by the consumer during the period: (1) beginning 15 days before the start date of the consumer's hospitalization or medical care; and (2) ending 15 days after the end date of the consumer's hospitalization or medical care; unless 60 days have elapsed from the end date of the period of hospitalization or medical care, and the consumer's account remains delinquent. Provides that not later than five business days after receiving a request to delete information from a consumer's file under these provisions, a consumer reporting agency shall delete the information from the consumer's file. Provides that: (1) a creditor; or (2) a third party furnisher; that requests that a consumer reporting agency delete information from a consumer's file is not liable for any action taken or not taken by the consumer reporting agency in response to the request. Specifies that the bill's provisions do not affect a consumer's rights under the federal: (1) Fair Credit Reporting Act; and (2) Health Insurance Portability and Accountability Act. Specifies that the federal Fair Credit Reporting Act does not exempt: (1) a creditor; (2) a third party furnisher; or (3) a consumer reporting agency; from the bill's provisions. Provides that a person that violates the bill's provisions commits a deceptive act that is subject to the penalties set forth in the statute concerning deceptive consumer sales.