Senate Bill No. 588
(By Senators Minard and Caldwell)
____________
[Introduced March 26, 2001; referred to the Committee on the
Judiciary.]
____________
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.