2005 Regular Session
To: Banking and Financial Services
By: Representative Fleming
AN ACT TO PROHIBIT THE USE OF CREDIT SCORING TO DETERMINE WHETHER AN APPLICANT WILL BE ELIGIBLE FOR A POLICY OF INSURANCE OR ELIGIBLE TO OPEN A SAVINGS OR CHECKING ACCOUNT AT A FINANCIAL INSTITUTION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) For the purposes of this section, the following terms shall have the following meanings:
(a) "Applicant" means a person who applies for a policy of any type of insurance or applies to open a savings or checking account at a financial institution.
(b) "Credit score" means a number derived from a statistical model or program that considers key attributes of an applicant and aspects of the transaction.
(c) "Credit scoring" means the use of a credit score, either alone or in conjunction with an evaluation of additional information about an applicant, to determine the applicant's creditworthiness.
(2) No person or entity shall use credit scoring to determine whether an applicant will be eligible for a policy of insurance or eligible to open a savings or checking account at a financial institution.
SECTION 2. This act shall take effect and be in force from and after July 1, 2005.