Test Drive Our New Site! We have some improvements in the works that we're excited for you to experience. Click here to try our new, faster, mobile friendly beta site. We will be maintaining our current version of the site thru the end of 2024, so you can switch back as our improvements continue.
Legislation Quick Search
07/13/2024 08:28 AM
Pennsylvania House of Representatives
Home / House Co-Sponsorship Memoranda

House Co-Sponsorship Memoranda

Subscribe to PaLegis Notifications

Subscribe to receive notifications of new Co-Sponsorship Memos circulated

By Member | By Date | Keyword Search

House of Representatives
Session of 2013 - 2014 Regular Session


Posted: June 19, 2013 10:44 AM
From: Representative Margo L. Davidson
To: All House members
Subject: Prohibiting the Denial of Credit Based on Satisfied Liens - Former HB 1624
In the near future, I will be introducing legislation that would amend Act 387 of 1968, the Unfair Trade Practices and Consumer Protection Law, to amend the definition of “unfair methods of competition” or “unfair or deceptive acts or practices” to include the denial of credit to a person solely on the basis of a legal or equitable lien against the person’s property which has been previously satisfied. By adding this new section to the law, lenders will no longer be able to use a paid lien or judgment to deny a person credit.

Too often people find themselves dealing with financial hardships and sometimes fall behind with creditors. Liens are placed against these individuals’ property in an effort to guarantee payment. When a person is finally able to dig themselves out of a financial hole, they often pay off their debt, including any liens placed against them. Unfortunately, even a paid lien continues to disparage a person’s credit. It is a common practice for credit bureaus to include paid liens on a person’s record for up to seven years. Some lenders use this information to deny a line of credit to the applicant. In an effort to help those individuals who have worked hard to improve their financial situation, my legislation would prohibit the denial of credit solely on the basis of a paid lien. Individuals who have taken responsibility for their actions and satisfied their debts deserve to have the opportunity for credit without their past mistakes penalizing them for years to come.

I ask you to join me in co-sponsoring this important legislation.

View Attachment

Introduced as HB1804