Bill > H3241

This bill adds a new chapter to South Carolina's consumer protection laws that prohibits consumer credit reporting agencies from including medical debt or other non-objective information in credit reports. Specifically, the bill defines key terms like "consumer," "consumer credit report," and "medical debt," and establishes that credit reporting agencies cannot include information in credit reports that is not measurable, objective, and directly related to a person's credit or payment history. The bill also creates significant penalties for violations, including potential damages of three times actual harm or up to $1,000 per incident for willful violations, and actual damages for negligent violations. Consumers who are harmed by improper credit reporting can seek civil action to stop future violations and recover damages. The goal of the legislation is to ensure that credit reports more accurately reflect a consumer's true creditworthiness by preventing the inclusion of irrelevant or potentially misleading information, with a particular focus on protecting consumers from having medical debt negatively impact their credit scores. The new law would take effect upon the Governor's approval.

Business and Industry

https://www.scstatehouse.gov/billsearch.php?billnumbers=3241&session=126&summary=B