Bill Text: NJ A3633 | 2016-2017 | Regular Session | Introduced
Bill Title: Establishes credit protections for juveniles in foster care system or receiving services from DCPP.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-04-14 - Introduced, Referred to Assembly Consumer Affairs Committee [A3633 Detail]
Download: New_Jersey-2016-A3633-Introduced.html
Sponsored by:
Assemblyman TIM EUSTACE
District 38 (Bergen and Passaic)
SYNOPSIS
Establishes credit protections for juveniles in foster care system or receiving services from DCPP.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning credit histories of juveniles in foster care system, supplementing Title 30 of the Revised Statutes, and amending P.L.1997, c.172.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. The Division of Child Protection and Permanency shall make an annual inquiry to each of the three major credit reporting agencies as to the existence of a consumer credit history on behalf of a child in the care, custody, or guardianship of the Department of Children and Families following his or her 16th birthday, and each year thereafter during which the child remains in the care, custody, or guardianship of the department. If an inquiry performed pursuant to this subsection indicates that a child has a consumer credit history with any major credit reporting agency, the division shall request a consumer credit report from that credit reporting agency, pursuant to the free annual disclosure provision of the federal "Fair Credit Reporting Act," 15 U.S.C. s.1681 et seq.
b. The division shall assist an individual between the ages of 18 and 21, who is receiving services pursuant to the provisions of section 3 of P.L.2004, c.130 (C.30:4C-2.3), on an annual basis with requesting a consumer credit report from each of the three major credit reporting agencies, pursuant to the free annual disclosure provision of the federal "Fair Credit Reporting Act," 15 U.S.C. s.1681 et seq.
c. The division shall ensure that a person provided with a consumer credit report in accordance with subsections a. and b. of this section receives assistance interpreting the report and resolving any inaccuracies. The assistance may include, but is not limited to, referring the person to a governmental or nonprofit agency that provides consumer credit services.
2. Section 4 of P.L.1997, c.172 (C.56:11-31) is amended to read as follows:
4. a. A consumer reporting agency may furnish a consumer report under the following circumstances and no other:
(1) In response to the order of a court having jurisdiction to issue such an order, or a subpoena issued in connection with proceedings before a State or federal grand jury.
(2) In accordance with the written instructions of the consumer to whom it relates.
(3) To a person which it has reason to believe:
(a) 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;
(b) intends to use the information for employment purposes;
(c) intends to use the information in connection with the underwriting of insurance involving the consumer;
(d) 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;
(e) intends to use the information, as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation; or
(f) otherwise has a legitimate business need for the information:
(i) in connection with a business transaction that is initiated by the consumer; or
(ii) to review an account to determine whether the consumer continues to meet the terms of the account.
(4) In response to a request by the head of a State or local child support enforcement agency (or a State or local government official authorized by the head of such an agency), if the person making the request certifies to the consumer reporting agency that:
(a) the consumer report is needed for the purpose of establishing an individual's capacity to make child support payments or determining the appropriate level of those payments;
(b) the paternity of the consumer for the child to which the obligation relates has been established or acknowledged by the consumer in accordance with State laws under which the obligation arises (if required by those laws);
(c) the person has provided at least 10 days' prior notice to the consumer whose report is requested, by certified or registered mail to the last known address of the consumer, that the report will be requested; and
(d) the consumer report will be kept confidential, will be used solely for a purpose described in paragraph (1) of this subsection, and will not be used in connection with any other civil, administrative, or criminal proceeding, or for any other purpose.
(5) To an agency administering a state plan under 42 U.S.C. s.654 for use to set an initial or modified child support award.
(6) In response to a request made on behalf of a child, pursuant to the provisions of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. A consumer reporting agency may furnish a consumer report for employment purposes only if:
(1) the person who obtains the report from the agency certifies to the agency that:
(a) the person has complied with subsection c. of this section with respect to the consumer report, and the person will comply with subsection d. of this section with respect to the consumer report if that subsection becomes applicable; and
(b) information from the consumer report will not be used in violation of any applicable federal or state equal employment opportunity law or regulation; and
(2) the consumer reporting agency provides with the report a summary of the consumer's rights under the federal "Fair Credit Reporting Act," 15 U.S.C. s.1681 et seq.
c. A person may not procure a consumer report, or cause a consumer report to be procured, for employment purposes with respect to any consumer, unless:
(1) a clear and conspicuous disclosure has been made in writing to the consumer at any time before the report is procured or caused to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes; and
(2) the consumer has authorized in writing the procurement of the report by that person.
d. A consumer reporting agency shall not furnish for employment purposes, or in connection with a credit or insurance transaction or a direct marketing transaction, a consumer report that contains medical information about a consumer unless the consumer consents to the furnishing of the report in writing.
e. In using a consumer report for employment purposes, before taking any adverse action based in whole or in part on the report, the person intending to take an adverse action shall provide to the consumer to whom the report relates:
(1) a copy of the report; and
(2) a description in writing of the rights of the consumer under this act and the federal "Fair Credit Reporting Act," 15 U.S.C. s.1681 et seq.
f. Consumer reporting agencies may furnish a consumer report relating to any consumer pursuant to subparagraph (a) or (c) of paragraph (3) of subsection a. of this section in connection with any credit or insurance transaction that is not authorized by the consumer only if the consumer reporting agency complies with the requirements of subsections (c) and (e) of section 604 of the federal "Fair Credit Reporting Act," 15 U.S.C. s.1681b.
g. A person shall not use or obtain a consumer report for any purpose unless:
(1) the consumer report is obtained for a purpose for which the consumer report is authorized to be furnished under this section; and
(2) the purpose for its use is certified in accordance with section 5 of this act by a prospective user of the report.
(cf: PL.1997, c.172, s.4)
3. This act shall take effect on the first day of the fourth month next following enactment.
STATEMENT
This bill establishes credit history and report protections for children in the care, custody, or guardianship of the Department of Children and Families (DCF).
Under the provisions of the bill, the Division of Child Protection and Permanency (DCPP) is required to make an annual inquiry to each of the three major credit reporting agencies as to the existence of a consumer credit history on behalf of a child in the care, custody, or guardianship of DCF after his or her 16th birthday, and each year after, so long as the child remains in the care, custody, or guardianship of DCF.
The bill specifies that if the results of the inquiry indicate a child has a consumer credit history with any major credit reporting agency, the division is required to request a consumer credit report from that agency, pursuant to the free annual disclosure provision of the federal "Fair Credit Reporting Act."
The bill also requires DCCP to assist young adults ages 18 to 21, who still receive services from DCF, in requesting a consumer credit report from each of the three major credit reporting agencies on an annual basis. DCCP is further required to provide assistance with interpreting the consumer credit report and resolving any inaccuracies. The assistance may include, but is not limited to, referring the child or young adult to a governmental or nonprofit agency that provides consumer credit services.
Finally, the bill amends the "New Jersey Fair Credit Reporting Act" to specifically provide that consumer reporting agencies may release reports in response to inquiries made by DCPP on behalf of children, as required by the provisions of this bill.
