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2023 SESSION
23101765DBe it enacted by the General Assembly of Virginia:
1. That §§ 59.1-335.2 and 59.1-335.7 of the Code of Virginia are amended and reenacted as follows:
§ 59.1-335.2. Definitions.
In this chapter the following words have the following meanings:
"Attorney General" means the Office of the Attorney General of Virginia.
"Commissioner" means the Commissioner of Agriculture and Consumer Services, or a member of his staff to whom he may delegate his duties under this chapter.
"Consumer" means any individual who is solicited to purchase or who purchases the services of a credit services business.
"Consumer report" means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which (i) is furnished or (ii) is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer's eligibility for:
1. Credit or insurance to be used primarily for personal, family, or household purposes; or
2. Employment purposes; or
3. Other purposes which shall be limited to the following circumstances:
a. In response to the order of a court having jurisdiction to issue the order.
b. In accordance with the written instructions of the consumer to whom the report relates.
c. To a person which the agency has reason to believe:
(i) Intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to or review or collection of an account of, the consumer; or
(ii) Intends to use the information for employment purposes; or
(iii) Intends to use the information in connection with the underwriting of insurance involving the consumer; or
(iv) Intends to use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status; or
(v) Otherwise has a legitimate business need for the information in connection with a business transaction involving the consumer.
The term "consumer report" does not include:
1. Any report containing information solely as to transactions or experiences between the consumer and the person making the report;
2. Any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device; or
3. Any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys his decision with respect to the request, if the third party advises the consumer of the name and address of the person to whom the request was made and the person makes the disclosures to the consumer as to the exact nature of the request and the effect of the report on its decision to extend credit.
"Consumer reporting agency" means any person which that,
for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages
in whole or in part in the practice of assembling or evaluating consumer credit
information or other information on consumers for the purpose of furnishing
consumer reports to third parties, and which that
uses any means or facility of commerce for the purpose of preparing or
furnishing consumer reports. "Consumer reporting agency" does not
include a private detective or
investigator licensed registered
under the provisions of Article 4 (§ 9.1-138 et seq.) of Chapter 1 of Title
9.1.
"Credit services business" means any person who that,
with respect to the extension of credit by others, sells, provides, or
performs, or represents that such person can or will sell, provide, or perform,
any of the following services in return for the payment of money or other
valuable consideration:
1. Improving a consumer's credit record, history, or rating;
2. Obtaining an extension of credit for a consumer; or
3. Providing advice or assistance to a consumer with regard to
either subdivision 1 or 2 herein.
"Credit services business" does not include:
(i) The making, arranging, or
negotiating for a loan or extension Any person
authorized to make, arrange, or negotiate loans or extensions
of credit under the laws of this the Commonwealth or the United
States;
(ii) Any bank, trust company, savings bank, or savings
institution whose deposits or accounts are eligible for insurance by the Federal
Deposit Insurance Corporation or other federal insurance agency, or any credit
union organized and chartered under the laws of this the Commonwealth or the United
States;
(iii) Any nonprofit organization exempt from taxation under § 501(c) (3) of the Internal Revenue Code (26 U.S.C. § 501(c) (3));
(iv) Any person licensed as a real estate broker by this the
Commonwealth where the person is acting within the course and scope of that
license;
(v) Any person licensed to practice law in this the Commonwealth where the
person renders services within the course and scope of that person's practice
as a lawyer;
(vi) Any broker-dealer registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission where the broker-dealer is acting within the course and scope of that regulation;
(vii) Any consumer reporting agency as defined in the Federal Fair Credit Reporting Act (15 U.S.C. §§ 1681 -1681v § 1681 et
seq.); or
(viii) Any person selling personal, family, or household goods to a consumer who, in connection with the seller's sale of its goods to the consumer, assists the consumer in obtaining a loan or extension of credit or extends credit to the consumer.
"Extension of credit" means the right to defer payment of debt or to incur debt and defer its payment, offered or granted primarily for personal, family, or household purposes.
"File" when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored.
"Investigative consumer report" means a consumer report or portion of it in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted or who may have knowledge concerning any items of information. However, the information does not include specific factual information on a consumer's credit record obtained directly from a creditor of the consumer or from a consumer reporting agency when the information was obtained directly from a creditor of the consumer or from the consumer.
"Person" includes an individual, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, two or more persons having a joint or common interest, and any other legal or commercial entity.
§ 59.1-335.7. Contents of information statement.
The information statement required under § 59.1-335.6 of this chapter shall include
all of the following:
1. a. A complete and accurate statement of the consumer's right to review any file on the consumer maintained by any consumer reporting agency, and the right of the consumer to receive a copy of a consumer report containing all information in that file as provided under the Federal Fair Credit Reporting Act (15 U.S.C. § 1681g);
b. A complete and accurate statement of the consumer's right to receive a free copy of the consumer's credit report every 12 months from each of the three nationwide consumer reporting agencies, including identification of the website and toll-free telephone number through which the free report may be obtained, as provided under the Federal Fair Credit Reporting Act (15 U.S.C. § 1681j);
c. A complete and accurate
statement that a copy of the consumer report containing all information in the
consumer's file will be furnished free of charge by the consumer reporting agency
if requested by the consumer within 30 60 days of receiving a notice
of a denial of credit as provided under the Federal
Fair Credit Reporting Act (15 U.S.C. § 1681j); and
c. d. A complete and accurate
statement that a nominal charge may be imposed on the consumer by the consumer
reporting agency for a copy of the consumer report containing all information
in the consumer's file, if the consumer has already obtained the free
credit report to which the consumer is entitled on an annual basis and the consumer
has not been denied credit within 30 60 days from receipt of the
consumer's request;
2. A complete and accurate statement of the consumer's right to dispute the completeness or accuracy of any item contained in any file on the consumer that is maintained by any consumer reporting agency, as provided under the Federal Fair Credit Reporting Act (15 U.S.C. § 1681i);
3. A complete and detailed description of the services to be performed by the credit services business for or on behalf of the consumer, and the total amount the consumer will have to pay, or become obligated to pay, for the services. Such statement shall include the following notice in at least 10-point bold type:
IMPORTANT NOTICE:
YOU HAVE NO OBLIGATION TO PAY
ANY FEES OR CHARGES UNTIL ALL
SERVICES HAVE BEEN PERFORMED
COMPLETELY FOR YOU, UNLESS YOU
ENTER INTO A SUBSCRIPTION AGREEMENT
REQUIRING PERIODIC PAYMENTS IN
CONSIDERATION FOR ONGOING SERVICES.
; and
4. The notice prescribed by subdivision 3 of
this section shall also be posted by means of a conspicuous
sign so as to be readily noticeable and readable at the location within the
premises of the credit services business where consumers are interviewed by
personnel of the business.