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A bill to be entitled

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An act relating to consumer credit reports; defining the

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terms "creditor" and "negative credit information";

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providing that a creditor may submit negative credit

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information concerning a consumer to a consumer reporting

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agency only if the creditor notifies the affected

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consumer; providing procedures for notifying the consumer;

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providing that the giving of notice by a creditor does not

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create a requirement for the creditor to actually submit

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negative credit information to a consumer credit reporting

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agency; providing that a creditor is liable for failing to

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provide notice to a consumer unless the creditor shows

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that at the time of the failure to give correct notice the

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creditor maintained reasonable procedures to comply with

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the law; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1. Reports of negative credit information.--

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     (1) As used in this section, the term:

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     (a) "Creditor" means a creditor or the agent or assignee of

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a creditor, including an agent engaged in administering or

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collecting the creditor's accounts.

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     (b) "Negative credit information" means information

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concerning the credit history of a consumer which, because of the

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consumer's past delinquencies, late or irregular payment history,

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insolvency, or any form of default, would reasonably be expected

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to adversely affect the consumer's ability to obtain or maintain

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credit. The term does not include information or credit histories

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arising from a nonconsumer transaction and does not include

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inquiries about a consumer's credit record.

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     (2) A creditor may submit negative credit information

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concerning a consumer to a consumer reporting agency only if the

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creditor notifies the affected consumer. After providing this

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notice, a creditor may submit additional information to the

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consumer reporting agency concerning the same transaction or

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extension of credit that gave rise to the original negative credit

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information without providing additional notice.

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     (3) The notice to the consumer must be in writing and must

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be delivered in person or mailed first class, postage prepaid, to

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the consumer's last known address within 30 days after the

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creditor reports the negative credit information.

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     (a) The notice may be part of any notice of default, billing

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statement, or other correspondence, and may be included as

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reprinted or standard-form language in any such notice from the

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creditor to the consumer.

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     (b) The notice is sufficient if it is in substantially the

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following form:

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As required by law, you are notified that a negative credit

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report reflecting on your consumer credit record may be

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submitted to a consumer reporting agency if you fail to

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fulfill the terms of your credit obligations.

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     (c) The notice may be more specific than the form provided

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in paragraph (b). The notice may include, but need not be limited

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to, particular information regarding an account or information

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concerning the approximate date on which the creditor submitted or

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intends to submit a negative credit report.

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     (d) The giving of notice by a creditor as provided in this

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subsection does not create any requirement for the creditor to

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actually submit negative credit information to a consumer credit

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reporting agency. However, this section does not authorize the use

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of notice as provided in this subsection in violation of the

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federal Fair Debt Collection Practices Act.

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     (4) A creditor is liable for failing to provide notice

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pursuant to this section unless the creditor establishes, by a

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preponderance of the evidence, that at the time of the failure to

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give correct notice the creditor maintained reasonable procedures

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to comply with this section.

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Section 2.  This act shall take effect July 1, 2008.