1.1                          A bill for an act
  1.2             relating to financial institutions; regulating use of 
  1.3             spousal credit history; requiring that creditors 
  1.4             consider a credit history in the name of the 
  1.5             applicant's spouse; requiring that creditors report a 
  1.6             credit history in the names of both spouses; amending 
  1.7             Minnesota Statutes 1996, section 325G.02, subdivision 
  1.8             1; proposing coding for new law in Minnesota Statutes, 
  1.9             chapter 325G. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1996, section 325G.02, 
  1.12  subdivision 1, is amended to read: 
  1.13     Subdivision 1.  [APPLICABILITY.] For purposes of sections 
  1.14  325G.02 to 325G.04 325G.042 the terms defined in this section 
  1.15  shall have meanings given them. 
  1.16     Sec. 2.  [325G.042] [CONSUMER CREDIT; EQUAL TREATMENT OF 
  1.17  SPOUSES.] 
  1.18     Subdivision 1.  [CONSIDERATION REQUIRED; SPOUSAL CREDIT 
  1.19  HISTORY.] (a) To the extent that an issuer of financial 
  1.20  transaction cards considers credit history in evaluating the 
  1.21  credit worthiness of similarly qualified applicants for a 
  1.22  similar type and amount of credit, in evaluating an applicant's 
  1.23  credit worthiness, the issuer shall consider: 
  1.24     (1) the credit history, when available, of accounts 
  1.25  designated as accounts that the applicant and the applicant's 
  1.26  spouse are permitted to use or for which both are contractually 
  1.27  liable; and 
  2.1      (2) at the applicant's request, the credit history, when 
  2.2   available, of any account reported in the name of the 
  2.3   applicant's spouse or former spouse that the applicant can 
  2.4   demonstrate accurately reflects the applicant's credit 
  2.5   worthiness. 
  2.6      (b) In considering a credit history referred to in 
  2.7   paragraph (a), the issuer shall consider it as if the credit 
  2.8   history were reported in the name of the applicant. 
  2.9      (c) This section does not affect the right of an issuer to 
  2.10  decline to issue a financial transaction card to an applicant 
  2.11  who does not meet the issuer's standards of credit worthiness, 
  2.12  other than credit history. 
  2.13     Subd. 2.  [CREDIT REPORTING; EQUAL TREATMENT OF 
  2.14  SPOUSES.] (a) An issuer of financial transaction cards that 
  2.15  furnishes credit information shall designate: 
  2.16     (1) any new account to reflect the participation of both 
  2.17  spouses if the applicant's spouse is permitted to use or is 
  2.18  contractually liable on the account, other than as a guarantor, 
  2.19  surety, endorser, or similar party; or 
  2.20     (2) any existing account to reflect such participation, 
  2.21  within 90 days after receiving a written request to do so from 
  2.22  one of the spouses. 
  2.23     (b) At the time that a new account is applied for or 
  2.24  opened, the issuer shall notify the applicant or account holder 
  2.25  of the right to have the account designated to reflect the 
  2.26  participation of both spouses under paragraph (a), clauses (1) 
  2.27  and (2).  For accounts existing before the effective date of 
  2.28  this act, the issuer shall inform the account holder of the 
  2.29  account holder's rights under paragraph (a), clause (2), no 
  2.30  later than July 1, 1999, unless the issuer has previously 
  2.31  informed the account holder of those rights. 
  2.32     (c) If an issuer of financial transaction cards furnishes 
  2.33  credit information to a consumer reporting agency concerning an 
  2.34  account designated to reflect the participation of both spouses, 
  2.35  the issuer shall furnish the information in a manner that will 
  2.36  enable the agency to provide access to the information in the 
  3.1   name of each spouse. 
  3.2      (d) If an issuer of financial transaction cards furnishes 
  3.3   credit information in response to an inquiry concerning an 
  3.4   account designated to reflect the participation of both spouses, 
  3.5   the issuer shall furnish the information in the name of the 
  3.6   spouse about whom the information is requested. 
  3.7      Subd. 3.  [ENFORCEMENT.] Enforcement of this section is 
  3.8   under section 8.31, except that in a private cause of action 
  3.9   under section 8.31, subdivision 3a, the damages are limited to 
  3.10  $1,000 and the plaintiff has no right to recover costs of 
  3.11  investigation and attorney fees. 
  3.12     Sec. 3.  [EFFECTIVE DATE.] 
  3.13     Section 1 is effective the day following final enactment.  
  3.14  Section 2 is effective January 1, 1999.