Current Status Introducing Body:Senate Bill Number:1092 Primary Sponsor:Bryan Committee Number:02 Type of Legislation:GB Subject:Credit information, provisions when incorrect Residing Body:Senate Current Committee:Banking and Insurance Computer Document Number:DKA/3483.SD Introduced Date:Jan 14, 1992 Last History Body:Senate Last History Date:Jan 14, 1992 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Bryan Type of Legislation:General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 1092 Senate Jan 14, 1992 Introduced, read first time, 02 referred to Committee 1092 Senate Nov 18, 1991 Prefiled, referred to 02 CommitteeView additional legislative information at the LPITS web site.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 34-1-135 SO AS TO PROVIDE THAT A FINANCIAL INSTITUTION OR LENDER REGULATED BY STATE OR FEDERAL LAW CONDUCTING BUSINESS IN THIS STATE, UPON BEING NOTIFIED IN WRITING THAT IT HAS ERRONEOUS OR INCORRECT CREDIT INFORMATION IN ITS FILE REGARDING A LOAN APPLICANT OR A PROSPECTIVE CUSTOMER AS A RESULT OF A CREDIT REPORT OR EXAMINATION IT CONDUCTED, MUST CORRECT THAT INFORMATION IN ITS FILE WITHIN FIFTEEN DAYS OF THE NOTIFICATION, AND TO PROVIDE FOR CERTAIN CIVIL PENALTIES UPON VIOLATION AND PROVIDE FOR A CAUSE OF ACTION AGAINST THE FINANCIAL INSTITUTION OR LENDER FOR ANY DAMAGE SUSTAINED AS A RESULT OF THE FAILURE TO CORRECT THIS INFORMATION AND FOR ATTORNEY'S FEES AND COSTS UPON MAINTAINING A SUCCESSFUL ACTION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 34-1-135. A financial institution or lender regulated by state or federal law conducting business in this state, upon being notified in writing that it has erroneous or incorrect credit information in its file regarding a loan applicant or a prospective customer as a result of a credit report or examination it conducted, must correct that information in its file within fifteen days of the notification.
The State Board of Financial Institutions or other entity having jurisdiction over the financial institution or lender may impose a civil penalty not exceeding one thousand dollars for a violation of this section and each violation constitutes a separate offense. In addition, a cause of action against the financial institution or lender lies in that person for any damages sustained by him as a result of the failure to correct this information, and upon maintaining a successful action against the financial institution or lender the person also is entitled to attorney's fees and costs.
If the erroneous or incorrect credit information was obtained by the financial institution or lender from another person who performed the credit report or examination for a fee, the financial institution or lender upon receiving such notification must remove the erroneous or incorrect information from the credit report or examination so obtained and must additionally notify the other person preparing the report of the mistake in writing within ten days and request it to also make the necessary correction."
SECTION 2. This act takes effect upon approval by the Governor.