It is enacted by the General Assembly as follows:

SECTION 1. Sections 6-13.1-20 and 6-13.1-21 of the General Laws in Chapter 6-13.1 entitled "Deceptive Trade Practices" are hereby amended to read as follows:

{ADD 6-13.1-20. Credit reports -- Definitions. -- ADD} As used in this article: (a)(1) The term "credit report" means any written, oral, or other communication of any information by a credit bureau bearing on a consumer's credit worthiness, credit standing or credit capacity, which 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 (i) credit or insurance to be used primarily for personal, family, {DEL business, DEL} or household purposes, (ii) employment purposes, or (iii) other purposes authorized under the federal Fair Credit Reporting Act.

(2) The term "credit report" does not include (i) any report containing information solely as to transactions or experiences between the consumer and the person making the report, (ii) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device, {DEL or DEL} (iii) 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 such request, if the third party advises the consumer of the name and address of the person to whom the request was made and such person makes the disclosures to the consumer required under the federal Fair Credit Reporting Act, {DEL or DEL} (iv) any report containing information solely on a consumer's character, general reputation, personal characteristics, or mode of living which 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 those items of information only if such report is not used in granting, extending, or decreasing credit.

(b) The term "credit bureau" means any person which 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 credit reports to third parties.

{ADD 6-13.1-21. Credit reports -- Notice to individual -- Requirements of users of credit reports. -- ADD} (a) No person or business shall request a credit report in connection with a consumer's application for credit, employment, or insurance unless a consumer is first informed that a credit report may be requested in connection with such application.

(b) Whenever credit or insurance for personal, family, {DEL business DEL} or household purposes, or employment, involving a consumer is denied or the charge for such credit or insurance is increased either wholly or partly because of information contained in a credit report from a credit bureau, the user of the credit report shall advise the consumer against whom such adverse action has been taken and supply the name and address of the credit bureau making the report.

SECTION 2. This act shall take effect upon passage.