SB-0075, As Passed Senate, May 23, 2007

SUBSTITUTE FOR

SENATE BILL NO. 75

     A bill to provide remedies in connection with security freezes

on certain consumer credit information.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. This act shall be known and may be cited as the

"consumer credit protection remedies act".

     Sec. 3. As used in this act, "consumer", "consumer reporting

agency", "credit report", and "security freeze" mean those terms as

defined in the consumer credit protection act.

     Sec. 5. (1) A consumer may bring an action against a person

that negligently fails to comply with any requirement imposed under

the consumer credit protection act with respect to the consumer to

recover actual damages sustained by the consumer as a result of the

failure, plus reasonable attorney fees and court costs. This

subsection does not apply to a person that fails to comply with

section 7(4) or 11(3) of the consumer credit protection act.

     (2) A consumer may bring an action against a person that fails

to comply with any requirement imposed under section 7(4) or 11(3)

of the consumer credit protection act with respect to the consumer,

to recover actual damages sustained by the consumer as a result of

the failure, plus reasonable attorney fees and court costs, but

only if the person's failure to comply with sections 7(4) or 11(3)

of the consumer credit protection act is knowing and willful.

     (3) A consumer reporting agency may bring an action against a

person who obtains a credit report or requests a security freeze,

the temporary lift of a freeze, or the removal of a freeze under

the consumer credit protection act from the consumer reporting

agency under false pretenses or in an attempt to violate federal or

state law to recover actual damages sustained by the consumer

reporting agency or $1,000.00, whichever is greater.

     (4) If the court in an action described in this section finds

that an unsuccessful pleading, motion, or other paper filed in

connection with the action was filed in bad faith or for purposes

of harassment, the court shall award attorney fees to the

prevailing party in an amount the court finds reasonable in

relation to the work expended in responding to the pleading,

motion, or paper.

     Enacting section 1. This act takes effect 90 days after the

date it is enacted.

     Enacting section 2. This act does not take effect unless

Senate Bill No. 340 of the 94th Legislature is enacted into law.