HARRY HUGHES, Governor

3101

CHAPTER 669

(House Bill 1001)

AN ACT concerning

Consumer Protection - Denial of Credit - Reasons

FOR the purpose of requiring a lender or credit grantor to
provide a consumer with certain information regarding the
reasons why the lender or credit grantor acted adversely
against or denied the consumer's application for credit;
defining certain terms; providing for certain procedures;
and generally relating to the denial of credit to consumers
by lenders or credit grantors.

BY adding to

Article - Commercial Law

Section 14-1312 14-1701 through 14-1706 to be under the new

subtitle "Subtitle 17. Denial of Credit -

Disclosure"
Annotated Code of Maryland
(1983 Replacement Volume and 1984 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

SUBTITLE 17. DENIAL OF CREDIT - DISCLOSURE

14-1312. 14-1701.

(A) (1) IN THIS SECTION, SUBTITLE THE FOLLOWING TERMS HAVE
THE MEANINGS INDICATED.

(2) (I) "ADVERSE ACTION" MEANS A DENIAL OR REVOCATION
OF CREDIT, A CHANGE IN THE TERMS OF AN EXISTING CREDIT
ARRANGEMENT, OR A REFUSAL TO GRANT CREDIT IN SUBSTANTIALLY THE
AMOUNT OR ON SUBSTANTIALLY THE TERMS REQUESTED.

(II) "ADVERSE ACTION" DOES NOT INCLUDE A
REFUSAL TO EXTEND ADDITIONAL CREDIT UNDER AN EXISTING CREDIT
ARRANGEMENT WHERE THE APPLICANT IS DELINQUENT OR OTHERWISE IN
DEFAULT, OR WHERE SUCH ADDITIONAL CREDIT WOULD EXCEED A
PREVIOUSLY ESTABLISHED CREDIT LIMIT.

(2) (3) "FILE" MEANS FILE AS DEFINED IN § 14-1210(G)
OF THIS TITLE.

(3) (4) "LENDER" OR "CREDIT GRANTOR" MEANS: