Arizona Laws 44-1698.01. Consumer credit reports; extension of credit; identity theft; definition
A. Any person who does not use a consumer credit report in connection with the approval of credit based on the application for an extension of credit shall not lend money or extend credit without taking reasonable steps to verify the consumer’s identity and confirm that the application for an extension of credit is not the result of taking the identity of another person or entity pursuant to section 13-2008 or aggravated taking the identity of another person or entity pursuant to section 13-2009.
Terms Used In Arizona Laws 44-1698.01
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Consumer: means an individual. See Arizona Laws 44-1691
- Consumer reporting agency: 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 on consumers for the purpose of furnishing consumer reports to third parties. See Arizona Laws 44-1691
- Credit report: A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. Source: OCC
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
- Fraud Alert: A key provision of the Fair and Accurate Credit Transactions Act of 2003 is the consumer's ability to place a fraud alert on their credit record. A consumer would use this option if they believe they were a victim of identity theft. Source: OCC
- Open-end credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or revolving credit.) Source: OCC
- Person: means an individual, partnership, corporation, association, or any other entity of whatever kind or nature. See Arizona Laws 44-1691
B. Any person who uses a consumer credit report in connection with the approval of credit based on the application for an extension of credit shall not lend money or extend credit without taking reasonable steps to verify the consumer’s identity and confirm that the application for an extension of credit is not the result of taking the identity of another person or entity pursuant to section 13-2008 or aggravated taking the identity of another person or entity pursuant to section 13-2009 if either of the following applies:
1. The creditor has received notification that a police report has been filed with a consumer reporting agency and that the applicant has been a victim of an offense involving a violation of section 13-2008 or 13-2009.
2. The creditor has received notification that the consumer has placed a fraud alert or security freeze on the consumer’s credit report.
C. In an action to collect on a debt as a result of an extension of credit, if a consumer proves by a preponderance of the evidence that an extender of credit extended the credit in violation of this section, the finder of fact may infer someone other than the consumer applied for and received the benefit of the extension of credit.
D. An act or practice in violation of this section is an unlawful practice under section 44-1522 and is subject to enforcement through private action and by the attorney general. Injunctive relief may be sought to prevent future violations of this section. The remedies provided in this section are not intended to be the exclusive remedies available to a person whose identity was used to secure an extension of credit in violation of this section.
E. For the purposes of this section, extension of credit does not include an increase in an existing open-end credit plan, as defined in regulation Z of the federal reserve system, 12 C.F.R. § 226.2, or any change to or review of an existing credit account.
F. Financial institutions that are required to have a customer identification program pursuant to 31 C.F.R. § 103.121 are exempt from this section.
G. For the purposes of this section, "reasonable steps" means any commercially reasonable action taken by an extender of credit that is intended to improve identity verification or confirmation or to lessen the likelihood of a violation of sections 13-2008 and 13-2009.