Plain English Breakdown
The official source material does not provide details on how this prohibition will impact existing practices or voluntary usage of social credit scores by financial institutions.
Prohibition on Using Social Credit Scores for Lending
This bill prohibits the state from requiring banks and other financial institutions to use social credit scores when evaluating lending decisions.
What This Bill Does
- Adds a new law, section 6-194, to Arizona Revised Statutes under title 6, chapter 2, article 1.
- Prohibits the state from mandating that banks or financial institutions must use social credit scores when evaluating whether to lend money to customers.
Who It Names or Affects
- Banks and financial institutions in the state of Arizona
- Customers who apply for loans or other types of lending
Terms To Know
- Social Credit Score
- A score that might be based on a person's behavior, actions, and how they interact with others in society.
- Financial Institutions
- Banks, credit unions, and other places where people can get loans or save money.
Limits and Unknowns
- The bill does not address what happens if a bank or financial institution voluntarily chooses to use social credit scores.
- It is unclear how this law might affect existing practices in Arizona's banking industry.
- This bill was vetoed by the governor, so it may need further action to become a law.