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Introduced Version Senate Bill 588 History

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Key: Green = existing Code. Red = new code to be enacted


Senate Bill No. 588

(By Senators Minard and Caldwell)

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[Introduced March 26, 2001; referred to the Committee on the Judiciary.]

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A BILL to amend article six, chapter forty-six-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section one hundred eleven, relating to credit cards for college students; delaying credit card collection activity or unfavorable credit history dissemination relating to a former or present college student between the ages of eighteen and twenty-one extended credit by credit card companies lacking evidence of repayment ability; making actions unfair trade practices; and providing for damages, costs and fees.

Be it enacted by the Legislature of West Virginia:
That article six, chapter forty-six-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section one hundred eleven, to read as follows:
ARTICLE 6. GENERAL CONSUMER PROTECTION.
§46A-6-111. Collection activity and dissemination of negative credit history regarding credit card debt against certain present or former college students prohibited; action for damages, costs and fees provided.

(a) No person or organization may institute or cause to be instituted collection activity against a present or former college student or disseminate an unfavorable credit report or payment history of a present or former college student concerning a credit card debt until six months after the student has ceased to be a full-time student, if: (1) The person or organization actively solicited applications for credit cards from college students who are eighteen years of age or older but less than twenty-one years of age; (2) the college student or former student was at least eighteen years but less than twenty-one years of age at the time application for the credit card was accepted; and (3) at the time the credit was extended by use of the credit card the student or former student was less than twenty-one years of age and the issuer of the card lacked reasonable proof of the card holder's ability to repay credit extended. The actions prohibited by the provisions of this section are considered to be unfair methods of competition and unfair or deceptive acts or practices.
(b) Notwithstanding other provisions of this article, if any person or organization fails to comply with the provisions of subsection (a) of this section, the student or former student may bring an action for damages, costs and attorney fees in the circuit court of the county where the student or former student resides or is enrolled full time in college, the county in which the student was residing or attending college at the time the credit was extended, or where the cause of action arose. If liability is proven, damages awarded shall be the greater of five hundred dollars or actual damages. The court, at its discretion, may award equitable relief as it considers necessary or proper.


NOTE: The purpose of this bill is to protect college students who have been recruited and approved for credit cards when they were between the ages of 18 and 21 from collection activities and dissemination of adverse credit information related to the card
until six months after the student has ceased to be a full-time student.

This section is new; therefore, strike-throughs and underscoring have been omitted.
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