Bill Text: CA AB2118 | 2009-2010 | Regular Session | Amended

---

Bill Title: Vehicles: dealers: consumer credit score disclosure.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2010-06-29 - In committee: Set first hearing. Failed passage. Reconsideration granted. [AB2118 Detail]

Download: California-2009-AB2118-Amended.html

---

BILL NUMBER: AB 2118	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 11, 2010

INTRODUCED BY   Assembly Member Hernandez

                        FEBRUARY 18, 2010

   An act to amend Section 11713.20 of the Vehicle Code, relating to
vehicles.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2118, as amended, Hernandez. Vehicles: dealers: consumer credit
score disclosure.
   Existing law requires a dealer that obtains a consumer credit
score from a consumer credit reporting agency for use in connection
with an application for credit initiated by a consumer for the
purchase or lease of a motor vehicle for personal, family, or
household use, prior to the sale or lease of the vehicle, to provide
to the consumer a notice containing information concerning credit
scores in at least 10-point boldface type on a document separate from
the sale or lease contract.
   This bill would  authorize the dealer, alternatively, to
provide to the consumer a credit score disclosure notice that meets
other form and content requirements   revise the form
and content requirements for that notice and delete the requirement
that the separate document be in   boldface type  .
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 11713.20 of the Vehicle Code is amended to
read:
   11713.20.  (a) A dealer that obtains a consumer credit score, as
defined in subdivision (b) of Section 1785.15.1 of the Civil Code,
from a consumer credit reporting agency, as defined in subdivision
(d) of Section 1785.3 of the Civil Code, for use in connection with
an application for credit initiated by a consumer for the purchase or
lease of a motor vehicle for personal, family, or household use,
shall provide to the consumer, prior to the sale  or lease of
the vehicle, either of the following:  
   (1) A credit score disclosure notice that meets the content
requirements in Section 640.5(e)(1)(ii), and the form requirements in
Section 640.5 (e)(2), of Title 16 of the Code of Federal
Regulations, as that section may be amended.  
   (2) A notice containing the following information at least
10-point boldface type on a document separate from the sale or lease
contract:  
   (A) The credit score obtained and used by the dealer and the name
of the credit reporting agency providing the credit score to the
dealer.  
   (B) The range of possible credit scores established by the credit
reporting agency that provided the credit score.  
   (C) The following notice, which shall include the name, address,
and telephone number of each credit reporting agency providing a
credit score that was obtained and used by the dealer: 

      "NOTICE TO VEHICLE CREDIT APPLICANT
    
   If the dealer obtains and uses a credit score from a credit
reporting agency in connection with your application to finance the
acquisition of a vehicle, the dealer must disclose the score to you.
 
   The credit score is a computer generated summary calculated by a
credit reporting agency at the time the dealer requests the score and
is based on information the credit reporting agency has on file. The
scores are based on data about your credit history and payment
patterns. Credit scores are important because they are used in
determining whether to extend credit. The score may also be used to
determine the annual percentage rate you may be offered. Credit
scores can change over time, depending on your conduct, how your
credit history and payment patterns change, and how credit scoring
technologies change. Credit scores may also vary from one credit
reporting agency to another.  
   If you have questions about your credit score, contact the credit
reporting agency at the address and telephone number provided. The
credit reporting agency does not participate in the decision to take
any action on your application for credit and is unable to provide
you with specific reasons for any decision on the credit application.

    If you have questions concerning credit terms relative to
your purchase or lease of a vehicle, ask the dealer."  
or lease of the vehicle, a credit score disclosure notice that meets
the form and content requirements in Section 640.5(e) of Title 16 of
the Code of Federal Regulations, as that section may be amended.
 
    (b) The dealer shall provide the notice required by subdivision
(a) in at least 10-point type on a document separate from the sale or
lease contract.  
   (b) 
    (c)  This section does not require a dealer to provide
more than one disclosure for each purchase or lease transaction.

   (c) 
    (d)  This section does not apply to the purchase or
lease of a motorcycle or an off-highway motor vehicle subject to
identification under Section 38010.