Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 412 (2020GS)

Sponsor

Rep. Maloy, A.C.

Final action

Governor Signed 3/24/2020

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• allows a creditor to notify the affected individual by electronic mail when the creditor submits a negative credit report to a credit reporting agency; and
• makes technical changes.

Every vote on this bill

Bill text

CREDIT REPORTING NOTIFICATION AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: A. Cory Maloy
Senate Sponsor: 
Jacob L. Anderegg
LONG TITLE
General Description:
This bill modifies provisions related to negative credit reports.
Highlighted Provisions:
This bill:
▸ allows a creditor to notify the affected individual by electronic mail when the
creditor submits a negative credit report to a credit reporting agency; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
70C-7-107
, as last amended by Laws of Utah 2007, Chapter 306
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
70C-7-107
 is amended to read:
70C-7-107.
Notice of negative credit report required.
(1) As used in this section:
(a) "Creditor," in addition to its definition under Section 
70C-1-302
, includes an agent
of a creditor engaged in administering or collecting the creditor's accounts.
(b) "Credit reporting agency" means any credit bureau, consumer reporting agency,
association of lending institutions, association of merchants, association of other creditors, any
person, firm, partnership, cooperative, or corporation which, for a fee, dues, or on a cooperative
nonprofit basis, is organized for the purpose of, or regularly engages in, the gathering or
evaluating of consumer credit information or other information about consumers for the
purpose of reporting to third parties on the credit rating or creditworthiness of any party.
(c) (i) "Negative credit report" means information reflecting on the credit history of a
party that, because of the party's past delinquencies, late or irregular payment history,
insolvency, or any form of default, would reasonably be expected to affect adversely the party's
ability to obtain or maintain credit.
(ii) Negative credit report does not include information or credit histories arising from
a nonconsumer transaction or any other credit transaction outside the scope of this title, nor
does it include inquiries about a consumer's record.
(2) A creditor may submit a negative credit report to a credit reporting agency, only if
the creditor notifies the party whose credit record is the subject of the negative report. After
providing this notice, a creditor may submit additional information to a credit reporting agency
respecting the same transaction or extension of credit that gave rise to the original negative
credit report without providing any additional notice.
[
(3) (a) Notice shall be in writing and shall be delivered in person or mailed first class,
postage prepaid, to the party's last-known address prior to or within 30 days after the
transmission of the report.
]
(3) (a) A creditor shall provide the notice described in Subsection (2):
(i) in writing;
(ii) by:
(A) in-person delivery;
(B) first class mail, postage prepaid, to the party's last-known address; or
(C) if the party has consented to receive notices by electronic mail, by electronic mail;
and
(iii) no more than 30 days after the day on which the creditor submits the negative
credit report to the credit reporting agency.
(b) The notice may be part of any notice of default, billing statement, or other
correspondence from the creditor to the party.
(c) The notice is sufficient if it takes substantially the following form:
"As required by Utah law, you are hereby notified that a negative credit report reflecting
on your credit record may be submitted to a credit reporting agency if you fail to fulfill the
terms of your credit obligations."
(d) The notice may, in the creditor's discretion, be more specific than the form given in
Subsection (3)(c). For example, the notice may provide particular information regarding an
account or list the approximate date on which the creditor submitted or intends to submit a
negative credit report.
(4) (a) A creditor who fails to provide notice as required by this section is liable to the
injured party for actual damages. In any cause of action filed to determine the liability of a
creditor or damages, the prevailing party in such an action is entitled to court costs and
attorney's fees.
(b) If a creditor willfully violates this section, the court may award punitive damages in
an amount not in excess of two times the amount of the actual damages awarded.
(c) A creditor is not liable for failure to provide notice if he establishes by a
preponderance of the evidence that, at the time of his failure to give notice, he maintained
reasonable procedures to comply with this section.
(5) A creditor is not required to comply with this section in violation of 11 U.S.C. Sec.
362, as amended.