Senate Bill 2083

AN ACT TO PROHIBIT CONSUMER REPORTING AGENCIES OR OTHER CREDIT SCORING ENTITIES FROM REDUCING THE CREDIT SCORE OF AN INDIVIDUAL BELOW A CERTAIN RATING WITHOUT ALLOWING THAT INDIVIDUAL A GRACE PERIOD; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. As used in this act, unless the context clearly requires otherwise:

(a) "Consumer reporting agency" has the meaning assigned by Section 603, Fair Credit Reporting Act (15 USC Section 1681a), as amended.

(b) "Credit report" means a written or electronic communication of any information by a consumer reporting agency that bears on an individual's creditworthiness, credit standing or credit capacity.

(c) "Credit score" means a numerical representation of the risk presented by an individual that uses attributes of the individual derived from a credit report or other consumer or credit information in a formula to assess risk on an actuarial or statistical basis.

(d) "Credit scoring entity" means a consumer reporting agency or other entity that creates, compiles or provides credit scores.

SECTION 2. (1) No consumer reporting agency or other credit scoring entity may reduce the credit score of an individual below the rating of six hundred (600) without allowing that individual a grace period of six (6) months. After the expiration of the grace period, the rating may be reduced.

(2) The Commissioner of Banking and Consumer Finance may impose a civil penalty against any consumer reporting agency or other credit scoring entity adjudged by the commissioner to be in violation of the provisions of this act. Such civil penalty shall not exceed One Thousand Dollars ($1,000.00) per violation and shall be deposited into the Department of Banking and Consumer Finance, "Consumer Finance Fund."

(3) The Commissioner of Banking and Consumer Finance may adopt rules and regulations necessary to carry out the provisions of this act.

SECTION 3. This act shall take effect and be in force from and after July 1, 2004.