Full Text of HB3380 98th General Assembly
HB3380 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB3380 Introduced , by Rep. Silvana Tabares SYNOPSIS AS INTRODUCED: |
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Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a guardian of a disabled person appointed under the Guardians for Disabled Adults Article of the Probate Act of 1975 or a parent or guardian of a minor may request that a consumer reporting agency place a security freeze on the credit report of the disabled person or minor by sending a request to the consumer reporting agency.
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| | A BILL FOR |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Consumer Fraud and Deceptive Business | 5 | | Practices Act is amended by changing Section 2MM as follows:
| 6 | | (815 ILCS 505/2MM)
| 7 | | Sec. 2MM. Verification of accuracy of consumer reporting | 8 | | information used to
extend consumers credit and security freeze | 9 | | on credit reports. | 10 | | (a) A credit card issuer who mails an offer or solicitation | 11 | | to apply for a
credit card and who receives a completed | 12 | | application in response to the offer
or
solicitation which | 13 | | lists an address that is not substantially the same as the
| 14 | | address on the offer or solicitation may not issue a credit | 15 | | card based on that
application until reasonable steps have been | 16 | | taken to verify the applicant's
change of address.
| 17 | | (b) Any person who uses a consumer credit report in | 18 | | connection with the
approval of credit based on the application | 19 | | for an extension of credit, and who
has received notification | 20 | | of a police report filed with a consumer reporting
agency that | 21 | | the applicant has been a victim of financial
identity theft, as | 22 | | defined in Section 16-30 or 16G-15 of the Criminal Code of 1961 | 23 | | or the Criminal Code of 2012, may
not lend money or extend |
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| 1 | | credit without taking reasonable steps to verify the
consumer's | 2 | | identity and confirm that the application for an extension of
| 3 | | credit
is not the result of financial identity theft.
| 4 | | (c) A consumer may request that a security freeze be placed | 5 | | on his or her credit report by sending a request in writing by | 6 | | certified mail to a consumer reporting agency at an address | 7 | | designated by the consumer reporting agency to receive such | 8 | | requests. A guardian of a disabled person appointed under | 9 | | Article XIa of the Probate Act of 1975 or a parent or guardian | 10 | | of a minor may request that a consumer reporting agency place a | 11 | | security freeze on the credit report of the disabled person or | 12 | | minor by sending a request in writing by certified mail to the | 13 | | consumer reporting agency at an address designated by the | 14 | | consumer reporting agency to receive such requests. This | 15 | | subsection (c) does not prevent a consumer reporting agency | 16 | | from advising a third party that a security freeze is in effect | 17 | | with respect to the consumer's credit report.
| 18 | | (d) A consumer reporting agency shall place a security | 19 | | freeze on a consumer's credit report no later than 5 business | 20 | | days after receiving a written request from the consumer:
| 21 | | (1) a written request described in subsection (c); | 22 | | (2) proper identification; and | 23 | | (3) payment of a fee, if applicable.
| 24 | | (e) Upon placing the security freeze on the consumer's | 25 | | credit report, the consumer reporting agency shall send to the | 26 | | consumer within 10 business days a written confirmation of the |
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| 1 | | placement of the security freeze and a unique personal | 2 | | identification number or password or similar device, other than | 3 | | the consumer's Social Security number, to be used by the | 4 | | consumer when providing authorization for the release of his or | 5 | | her credit report for a specific party or period of time.
| 6 | | (f) If the consumer wishes to allow his or her credit | 7 | | report to be accessed for a specific party or period of time | 8 | | while a freeze is in place, he or she shall contact the | 9 | | consumer reporting agency using a point of contact designated | 10 | | by the consumer reporting agency, request that the freeze be | 11 | | temporarily lifted, and provide the following:
| 12 | | (1) Proper identification;
| 13 | | (2) The unique personal identification number or | 14 | | password or similar device provided by the consumer | 15 | | reporting agency;
| 16 | | (3) The proper information regarding the third party or | 17 | | time period for which the report shall be available to | 18 | | users of the credit report; and
| 19 | | (4) A fee, if applicable.
| 20 | | (g) A consumer reporting agency shall develop a contact | 21 | | method to receive and process a request from a consumer to | 22 | | temporarily lift a freeze on a credit report pursuant to | 23 | | subsection (f) in an expedited manner.
| 24 | | A contact method under this subsection shall include:
(i) a | 25 | | postal address; and (ii) an electronic contact method chosen by | 26 | | the consumer reporting agency, which may include the use of |
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| 1 | | telephone, fax, Internet, or other electronic means.
| 2 | | (h) A consumer reporting agency that receives a request | 3 | | from a consumer to temporarily lift a freeze on a credit report | 4 | | pursuant to subsection (f), shall comply with the request no | 5 | | later than 3 business days after receiving the request.
| 6 | | (i) A consumer reporting agency shall remove or temporarily | 7 | | lift a freeze placed on a consumer's credit report only in the | 8 | | following cases:
| 9 | | (1) upon consumer request, pursuant to subsection (f) | 10 | | or subsection (l) of this Section; or
| 11 | | (2) if the consumer's credit report was frozen due to a | 12 | | material misrepresentation of fact by the consumer.
| 13 | | If a consumer reporting agency intends to remove a freeze | 14 | | upon a consumer's credit report pursuant to this subsection, | 15 | | the consumer reporting agency shall notify the consumer in | 16 | | writing prior to removing the freeze on the consumer's credit | 17 | | report.
| 18 | | (j) If a third party requests access to a credit report on | 19 | | which a security freeze is in effect, and this request is in | 20 | | connection with an application for credit or any other use, and | 21 | | the consumer does not allow his or her credit report to be | 22 | | accessed for that specific party or period of time, the third | 23 | | party may treat the application as incomplete.
| 24 | | (k) If a consumer requests a security freeze, the credit | 25 | | reporting agency shall disclose to the consumer the process of | 26 | | placing and temporarily lifting a security freeze, and the |
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| 1 | | process for allowing access to information from the consumer's | 2 | | credit report for a specific party or period of time while the | 3 | | freeze is in place.
| 4 | | (l) A security freeze shall remain in place until the | 5 | | consumer requests, using a point of contact designated by the | 6 | | consumer reporting agency, that the security freeze be removed. | 7 | | A credit reporting agency shall remove a security freeze within | 8 | | 3 business days of receiving a request for removal from the | 9 | | consumer, who provides:
| 10 | | (1) Proper identification;
| 11 | | (2) The unique personal identification number or | 12 | | password or similar device provided by the consumer | 13 | | reporting agency; and
| 14 | | (3) A fee, if applicable.
| 15 | | (m) A consumer reporting agency shall require proper | 16 | | identification of the person making a request to place or | 17 | | remove a security freeze.
| 18 | | (n) The provisions of subsections (c) through (m) of this | 19 | | Section do not apply to the use of a consumer credit report by | 20 | | any of the following:
| 21 | | (1) A person or entity, or a subsidiary, affiliate, or | 22 | | agent of that person or entity, or an assignee of a | 23 | | financial obligation owing by the consumer to that person | 24 | | or entity, or a prospective assignee of a financial | 25 | | obligation owing by the consumer to that person or entity | 26 | | in conjunction with the proposed purchase of the financial |
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| 1 | | obligation, with which the consumer has or had prior to | 2 | | assignment an account or contract, including a demand | 3 | | deposit account, or to whom the consumer issued a | 4 | | negotiable instrument, for the purposes of reviewing the | 5 | | account or collecting the financial obligation owing for | 6 | | the account, contract, or negotiable instrument. For | 7 | | purposes of this subsection, "reviewing the account" | 8 | | includes activities related to account maintenance, | 9 | | monitoring, credit line increases, and account upgrades | 10 | | and enhancements.
| 11 | | (2) A subsidiary, affiliate, agent, assignee, or | 12 | | prospective assignee of a person to whom access has been | 13 | | granted under subsection (f) of this Section for purposes | 14 | | of facilitating the extension of credit or other | 15 | | permissible use.
| 16 | | (3) Any state or local agency, law enforcement agency, | 17 | | trial court, or private collection agency acting pursuant | 18 | | to a court order, warrant, or subpoena.
| 19 | | (4) A child support agency acting pursuant to Title | 20 | | IV-D of the Social Security Act.
| 21 | | (5) The State or its agents or assigns acting to | 22 | | investigate fraud.
| 23 | | (6) The Department of Revenue or its agents or assigns | 24 | | acting to investigate or collect delinquent taxes or unpaid | 25 | | court orders or to fulfill any of its other statutory | 26 | | responsibilities.
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| 1 | | (7) The use of credit information for the purposes of | 2 | | prescreening as provided for by the federal Fair Credit | 3 | | Reporting Act.
| 4 | | (8) Any person or entity administering a credit file | 5 | | monitoring subscription or similar service to which the | 6 | | consumer has subscribed.
| 7 | | (9) Any person or entity for the purpose of providing a | 8 | | consumer with a copy of his or her credit report or score | 9 | | upon the consumer's request.
| 10 | | (10) Any person using the information in connection | 11 | | with the underwriting of insurance.
| 12 | | (n-5) This Section does not prevent a consumer reporting | 13 | | agency from charging a fee of no more than $10 to a consumer | 14 | | for each freeze, removal, or temporary lift of the freeze, | 15 | | regarding access to a consumer credit report, except that a | 16 | | consumer reporting agency may not charge a fee to (i) a | 17 | | consumer 65 years of age or over for placement and removal of a | 18 | | freeze, or (ii) a victim of identity theft who has submitted to | 19 | | the consumer reporting agency a valid copy of a police report, | 20 | | investigative report, or complaint that the consumer has filed | 21 | | with a law enforcement agency about unlawful use of his or her | 22 | | personal information by another person.
| 23 | | (o) If a security freeze is in place, a consumer reporting | 24 | | agency shall not change any of the following official | 25 | | information in a credit report without sending a written | 26 | | confirmation of the change to the consumer within 30 days of |
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| 1 | | the change being posted to the consumer's file: (i) name, (ii) | 2 | | date of birth, (iii) Social Security number, and (iv) address. | 3 | | Written confirmation is not required for technical | 4 | | modifications of a consumer's official information, including | 5 | | name and street abbreviations, complete spellings, or | 6 | | transposition of numbers or letters. In the case of an address | 7 | | change, the written confirmation shall be sent to both the new | 8 | | address and to the former address.
| 9 | | (p) The following entities are not required to place a | 10 | | security freeze in a consumer report, however, pursuant to | 11 | | paragraph (3) of this subsection, a consumer reporting agency | 12 | | acting as a reseller shall honor any security freeze placed on | 13 | | a consumer credit report by another consumer reporting agency:
| 14 | | (1) A check services or fraud prevention services | 15 | | company, which issues reports on incidents of fraud or | 16 | | authorizations for the purpose of approving or processing | 17 | | negotiable instruments, electronic funds transfers, or | 18 | | similar methods of payment.
| 19 | | (2) A deposit account information service company, | 20 | | which issues reports regarding account closures due to | 21 | | fraud, substantial overdrafts, ATM abuse, or similar | 22 | | negative information regarding a consumer to inquiring | 23 | | banks or other financial institutions for use only in | 24 | | reviewing a consumer request for a deposit account at the | 25 | | inquiring bank or financial institution.
| 26 | | (3) A consumer reporting agency that:
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| 1 | | (A) acts only to resell credit information by | 2 | | assembling and merging information contained in a | 3 | | database of one or more consumer reporting agencies; | 4 | | and
| 5 | | (B) does not maintain a permanent database of | 6 | | credit information from which new credit reports are | 7 | | produced.
| 8 | | (q) For purposes of this Section: | 9 | | "Credit report" has the same meaning as "consumer report", | 10 | | as ascribed to it in 15 U.S.C. Sec. 1681a(d). | 11 | | "Consumer reporting agency" has the meaning ascribed to it | 12 | | in 15 U.S.C. Sec. 1681a(f). | 13 | | "Security freeze" means
a notice placed in a consumer's | 14 | | credit report, at the request of the consumer and subject to | 15 | | certain exceptions, that prohibits the consumer reporting | 16 | | agency from releasing the consumer's credit report or score | 17 | | relating to an extension of credit, without the express | 18 | | authorization of the consumer.
| 19 | | "Extension of credit" does not include
an increase in an | 20 | | existing open-end credit plan, as defined in Regulation Z of
| 21 | | the Federal Reserve System (12 C.F.R. 226.2), or any change to | 22 | | or review of an
existing credit account.
| 23 | | "Proper identification" means information generally deemed | 24 | | sufficient to identify a person. Only if the consumer is unable | 25 | | to reasonably identify himself or herself with the information | 26 | | described above, may a consumer reporting agency require |
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| 1 | | additional information concerning the consumer's employment | 2 | | and personal or family history in order to verify his or her | 3 | | identity.
| 4 | | (r) Any person who violates this Section commits an
| 5 | | unlawful practice within the meaning of this Act.
| 6 | | (Source: P.A. 97-597, eff. 1-1-12; 97-1150, eff. 1-25-13.)
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