100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3872

 

Introduced , by Rep. Michelle Mussman

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 505/2MM

    Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that in addition to a freeze on a minor's consumer report, a freeze may be placed on the minor's credit file. Establishes the procedures for obtaining a freeze on a minor's or protected consumer's credit file. Defines terms.


LRB100 10946 KTG 21882 b

 

 

A BILL FOR

 

HB3872LRB100 10946 KTG 21882 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Consumer Fraud and Deceptive Business
5Practices Act is amended by changing Section 2MM as follows:
 
6    (815 ILCS 505/2MM)
7    Sec. 2MM. Verification of accuracy of consumer reporting
8information used to extend consumers credit and security freeze
9on credit reports.
10    (a) A credit card issuer who mails an offer or solicitation
11to apply for a credit card and who receives a completed
12application in response to the offer or solicitation which
13lists an address that is not substantially the same as the
14address on the offer or solicitation may not issue a credit
15card based on that application until reasonable steps have been
16taken to verify the applicant's change of address.
17    (b) Any person who uses a consumer credit report in
18connection with the approval of credit based on the application
19for an extension of credit, and who has received notification
20of a police report filed with a consumer reporting agency that
21the applicant has been a victim of financial identity theft, as
22defined in Section 16-30 or 16G-15 of the Criminal Code of 1961
23or the Criminal Code of 2012, may not lend money or extend

 

 

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1credit without taking reasonable steps to verify the consumer's
2identity and confirm that the application for an extension of
3credit is not the result of financial identity theft.
4    (c) A consumer may request that a security freeze be placed
5on his or her credit report by sending a request in writing by
6certified mail to a consumer reporting agency at an address
7designated by the consumer reporting agency to receive such
8requests.
9    The following persons may request that a security freeze be
10placed on the credit report of a person with a disability:
11        (1) a guardian of the person with a disability who is
12    the subject of the request, appointed under Article XIa of
13    the Probate Act of 1975; and
14        (2) an agent of the person with a disability who is the
15    subject of the request, under a written durable power of
16    attorney that complies with the Illinois Power of Attorney
17    Act.
18    The following persons may request that a security freeze be
19placed on the credit report of a minor:
20        (1) a guardian of the minor who is the subject of the
21    request, appointed under Article XI of the Probate Act of
22    1975;
23        (2) a parent of the minor who is the subject of the
24    request; and
25        (3) a guardian appointed under the Juvenile Court Act
26    of 1987 for a minor under the age of 18 who is the subject

 

 

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1    of the request or, with a court order authorizing the
2    guardian consent power, for a youth who is the subject of
3    the request who has attained the age of 18, but who is
4    under the age of 21.
5    This subsection (c) does not prevent a consumer reporting
6agency from advising a third party that a security freeze is in
7effect with respect to the consumer's credit report.
8    (d) A consumer reporting agency shall place a security
9freeze on a consumer's credit report no later than 5 business
10days after receiving a written request from the consumer:
11        (1) a written request described in subsection (c);
12        (2) proper identification; and
13        (3) payment of a fee, if applicable.
14    (e) Upon placing the security freeze on the consumer's
15credit report, the consumer reporting agency shall send to the
16consumer within 10 business days a written confirmation of the
17placement of the security freeze and a unique personal
18identification number or password or similar device, other than
19the consumer's Social Security number, to be used by the
20consumer when providing authorization for the release of his or
21her credit report for a specific party or period of time.
22    (f) If the consumer wishes to allow his or her credit
23report to be accessed for a specific party or period of time
24while a freeze is in place, he or she shall contact the
25consumer reporting agency using a point of contact designated
26by the consumer reporting agency, request that the freeze be

 

 

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1temporarily lifted, and provide the following:
2        (1) Proper identification;
3        (2) The unique personal identification number or
4    password or similar device provided by the consumer
5    reporting agency;
6        (3) The proper information regarding the third party or
7    time period for which the report shall be available to
8    users of the credit report; and
9        (4) A fee, if applicable.
10    A security freeze for a minor may not be temporarily
11lifted. This Section does not require a consumer reporting
12agency to provide to a minor or a parent or guardian of a minor
13on behalf of the minor a unique personal identification number,
14password, or similar device provided by the consumer reporting
15agency for the minor, or parent or guardian of the minor, to
16use to authorize the consumer reporting agency to release
17information from a minor.
18    (f-5) The following persons may request that a security
19freeze be placed on the credit file of a minor:
20        (1) a parent of the minor who is the subject of the
21    request;
22        (2) a guardian, appointed under Article XI of the
23    Probate Act of 1975, of the minor who is the subject of the
24    request; and
25        (3) a guardian appointed under the Juvenile Court Act
26    of 1987 for a minor under the age of 18 who is the subject

 

 

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1    of the request or, with a court order authorizing the
2    guardian consent power, for a youth who is the subject of
3    the request who has attained the age of 18, but who is
4    under the age of 21.
5    The request must be in writing and must contain:
6        (1) The following information with respect to the
7    parent or guardian:
8            (A) complete name, including any suffix;
9            (B) a complete address;
10            (C) a copy of the person's social security card or
11        a certified or official copy of the person's birth
12        certificate; and
13            (D) a copy of the person's driver's license,
14        identification card issued by the Secretary of State or
15        any other government-issued identification, or a copy
16        of a utility bill that shows name and home address.
17        (2) The following information with respect to the
18    protected consumer or minor who is the subject of the
19    freeze:
20            (A) complete name, including any suffix;
21            (B) a complete address;
22            (C) a copy of a social security card;
23            (D) for a minor, a certified or official copy of
24        the minor's birth certificate; and
25            (E) for a person under guardianship or power of
26        attorney, an order issued by a court of law, a lawfully

 

 

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1        executed and valid power of attorney, or a written,
2        signed and notarized statement that expressly
3        describes the authority of the person making the
4        request to act on behalf of the protected consumer.
5    A security freeze on a credit file for a minor may not be
6temporarily lifted.
7    (g) A consumer reporting agency shall develop a contact
8method to receive and process a request from a consumer to
9temporarily lift a freeze on a credit report pursuant to
10subsection (f) in an expedited manner.
11    A contact method under this subsection shall include: (i) a
12postal address; and (ii) an electronic contact method chosen by
13the consumer reporting agency, which may include the use of
14telephone, fax, Internet, or other electronic means.
15    (h) A consumer reporting agency that receives a request
16from a consumer to temporarily lift a freeze on a credit report
17pursuant to subsection (f), shall comply with the request no
18later than 3 business days after receiving the request.
19    (i) A consumer reporting agency shall remove or temporarily
20lift a freeze placed on a consumer's credit report only in the
21following cases:
22        (1) upon consumer request, pursuant to subsection (f)
23    or subsection (l) of this Section; or
24        (2) if the consumer's credit report was frozen due to a
25    material misrepresentation of fact by the consumer.
26    If a consumer reporting agency intends to remove a freeze

 

 

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1upon a consumer's credit report pursuant to this subsection,
2the consumer reporting agency shall notify the consumer in
3writing prior to removing the freeze on the consumer's credit
4report.
5    (j) If a third party requests access to a credit report on
6which a security freeze is in effect, and this request is in
7connection with an application for credit or any other use, and
8the consumer does not allow his or her credit report to be
9accessed for that specific party or period of time, the third
10party may treat the application as incomplete.
11    (k) If a consumer requests a security freeze, the credit
12reporting agency shall disclose to the consumer the process of
13placing and temporarily lifting a security freeze, and the
14process for allowing access to information from the consumer's
15credit report for a specific party or period of time while the
16freeze is in place.
17    (l) A security freeze shall remain in place until the
18consumer or person authorized under subsection (c) to act on
19behalf of the minor or person with a disability who is the
20subject of the security freeze requests, using a point of
21contact designated by the consumer reporting agency, that the
22security freeze be removed. A credit reporting agency shall
23remove a security freeze within 3 business days of receiving a
24request for removal from the consumer, who provides:
25        (1) Proper identification;
26        (2) The unique personal identification number or

 

 

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1    password or similar device provided by the consumer
2    reporting agency; and
3        (3) A fee, if applicable.
4    (m) A consumer reporting agency shall require proper
5identification of the person making a request to place or
6remove a security freeze and may require proper identification
7and proper authority from the person making the request to
8place or remove a freeze on behalf of the person with a
9disability or minor.
10    (n) The provisions of subsections (c) through (m) of this
11Section do not apply to the use of a consumer credit report by
12any of the following:
13        (1) A person or entity, or a subsidiary, affiliate, or
14    agent of that person or entity, or an assignee of a
15    financial obligation owing by the consumer to that person
16    or entity, or a prospective assignee of a financial
17    obligation owing by the consumer to that person or entity
18    in conjunction with the proposed purchase of the financial
19    obligation, with which the consumer has or had prior to
20    assignment an account or contract, including a demand
21    deposit account, or to whom the consumer issued a
22    negotiable instrument, for the purposes of reviewing the
23    account or collecting the financial obligation owing for
24    the account, contract, or negotiable instrument. For
25    purposes of this subsection, "reviewing the account"
26    includes activities related to account maintenance,

 

 

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1    monitoring, credit line increases, and account upgrades
2    and enhancements.
3        (2) A subsidiary, affiliate, agent, assignee, or
4    prospective assignee of a person to whom access has been
5    granted under subsection (f) of this Section for purposes
6    of facilitating the extension of credit or other
7    permissible use.
8        (3) Any state or local agency, law enforcement agency,
9    trial court, or private collection agency acting pursuant
10    to a court order, warrant, or subpoena.
11        (4) A child support agency acting pursuant to Title
12    IV-D of the Social Security Act.
13        (5) The State or its agents or assigns acting to
14    investigate fraud.
15        (6) The Department of Revenue or its agents or assigns
16    acting to investigate or collect delinquent taxes or unpaid
17    court orders or to fulfill any of its other statutory
18    responsibilities.
19        (7) The use of credit information for the purposes of
20    prescreening as provided for by the federal Fair Credit
21    Reporting Act.
22        (8) Any person or entity administering a credit file
23    monitoring subscription or similar service to which the
24    consumer has subscribed.
25        (9) Any person or entity for the purpose of providing a
26    consumer with a copy of his or her credit report or score

 

 

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1    upon the consumer's request.
2        (10) Any person using the information in connection
3    with the underwriting of insurance.
4    (n-5) This Section does not prevent a consumer reporting
5agency from charging a fee of no more than $10 to a consumer
6for each freeze, removal, or temporary lift of the freeze,
7regarding access to a consumer credit report, except that a
8consumer reporting agency may not charge a fee to: (i) a
9consumer 65 years of age or over for placement and removal of a
10freeze; (ii) a victim of identity theft who has submitted to
11the consumer reporting agency a valid copy of a police report,
12investigative report, or complaint that the consumer has filed
13with a law enforcement agency about unlawful use of his or her
14personal information by another person; or (iii) an active duty
15military service member who has submitted to the consumer
16reporting agency a copy of his or her orders calling the
17service member to military service and any orders further
18extending the service member's period of service if currently
19active.
20    (o) If a security freeze is in place, a consumer reporting
21agency shall not change any of the following official
22information in a credit report without sending a written
23confirmation of the change to the consumer within 30 days of
24the change being posted to the consumer's file: (i) name, (ii)
25date of birth, (iii) Social Security number, and (iv) address.
26Written confirmation is not required for technical

 

 

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1modifications of a consumer's official information, including
2name and street abbreviations, complete spellings, or
3transposition of numbers or letters. In the case of an address
4change, the written confirmation shall be sent to both the new
5address and to the former address.
6    (p) The following entities are not required to place a
7security freeze in a consumer report, however, pursuant to
8paragraph (3) of this subsection, a consumer reporting agency
9acting as a reseller shall honor any security freeze placed on
10a consumer credit report by another consumer reporting agency:
11        (1) A check services or fraud prevention services
12    company, which issues reports on incidents of fraud or
13    authorizations for the purpose of approving or processing
14    negotiable instruments, electronic funds transfers, or
15    similar methods of payment.
16        (2) A deposit account information service company,
17    which issues reports regarding account closures due to
18    fraud, substantial overdrafts, ATM abuse, or similar
19    negative information regarding a consumer to inquiring
20    banks or other financial institutions for use only in
21    reviewing a consumer request for a deposit account at the
22    inquiring bank or financial institution.
23        (3) A consumer reporting agency that:
24            (A) acts only to resell credit information by
25        assembling and merging information contained in a
26        database of one or more consumer reporting agencies;

 

 

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1        and
2            (B) does not maintain a permanent database of
3        credit information from which new credit reports are
4        produced.
5    (q) For purposes of this Section:
6    "Credit file" has the meaning ascribed to it in 15 U.S.C.
7Sec. 1681a(g).
8    "Credit report" has the same meaning as "consumer report",
9as ascribed to it in 15 U.S.C. Sec. 1681a(d).
10    "Consumer reporting agency" has the meaning ascribed to it
11in 15 U.S.C. Sec. 1681a(f).
12    "Security freeze" means a notice placed in a consumer's
13credit report, at the request of the consumer and subject to
14certain exceptions, that prohibits the consumer reporting
15agency from releasing the consumer's credit report or score
16relating to an extension of credit, without the express
17authorization of the consumer.
18    "Extension of credit" does not include an increase in an
19existing open-end credit plan, as defined in Regulation Z of
20the Federal Reserve System (12 C.F.R. 226.2), or any change to
21or review of an existing credit account.
22    "Proper authority" means documentation that shows that a
23parent, guardian, or agent has authority to act on behalf of a
24minor or person with a disability. "Proper authority" includes
25(1) an order issued by a court of law that shows that a
26guardian has authority to act on behalf of a minor or person

 

 

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1with a disability, (2) a written, notarized statement signed by
2a parent that expressly describes the authority of the parent
3to act on behalf of the minor, or (3) a durable power of
4attorney that complies with the Illinois Power of Attorney Act.
5    "Proper identification" means information generally deemed
6sufficient to identify a person. Only if the consumer is unable
7to reasonably identify himself or herself with the information
8described above, may a consumer reporting agency require
9additional information concerning the consumer's employment
10and personal or family history in order to verify his or her
11identity.
12    "Military service member" means a resident of Illinois who
13is a member of any component of the U.S. Armed Forces or the
14National Guard of any state, the District of Columbia, a
15commonwealth, or a territory of the United States who has
16entered any full-time training or duty for which the service
17member was ordered to report by the President, the governor of
18a state, commonwealth, or territory of the United States, or
19another appropriate military authority.
20    (r) Any person who violates this Section commits an
21unlawful practice within the meaning of this Act.
22(Source: P.A. 98-486, eff. 1-1-14; 98-756, eff. 7-16-14;
2399-143, eff. 7-27-15; 99-373, eff. 1-1-16; 99-642, eff.
247-28-16.)