Illinois General Assembly - Full Text of HB3380
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Full Text of HB3380  98th General Assembly


Rep. Silvana Tabares

Filed: 4/12/2013





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2    AMENDMENT NO. ______. Amend House Bill 3380 by replacing
3everything after the enacting clause with the following:
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.



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1    (b) Any person who uses a consumer credit report in
2connection with the approval of credit based on the application
3for an extension of credit, and who has received notification
4of a police report filed with a consumer reporting agency that
5the applicant has been a victim of financial identity theft, as
6defined in Section 16-30 or 16G-15 of the Criminal Code of 1961
7or the Criminal Code of 2012, may not lend money or extend
8credit without taking reasonable steps to verify the consumer's
9identity and confirm that the application for an extension of
10credit is not the result of financial identity theft.
11    (c) A consumer may request that a security freeze be placed
12on his or her credit report by sending a request in writing by
13certified mail to a consumer reporting agency at an address
14designated by the consumer reporting agency to receive such
16    The following persons may request that a security freeze be
17placed on the credit report of a disabled person:
18        (1) a guardian appointed under Article XIa of the
19    Probate Act of 1975; and
20        (2) an agent under a written durable power of attorney
21    that complies with Illinois Power of Attorney Act.
22     The following persons may request that a security freeze
23be placed on the credit report of a minor:
24        (1) a guardian appointed under Article XI of the
25    Probate Act of 1975; and
26        (2) a parent.



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



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1    reporting agency;
2        (3) The proper information regarding the third party or
3    time period for which the report shall be available to
4    users of the credit report; and
5        (4) A fee, if applicable.
6    A security freeze for a minor may not be temporarily
7lifted. This Section does not require a consumer reporting
8agency to provide to a minor or a parent or guardian of a minor
9on behalf of the minor a unique personal identification number,
10password, or similar device provided by the consumer reporting
11agency for the minor, or parent or guardian of the minor, to
12use to authorize the consumer reporting agency to release
13information from a minor.
14    (g) A consumer reporting agency shall develop a contact
15method to receive and process a request from a consumer to
16temporarily lift a freeze on a credit report pursuant to
17subsection (f) in an expedited manner.
18    A contact method under this subsection shall include: (i) a
19postal address; and (ii) an electronic contact method chosen by
20the consumer reporting agency, which may include the use of
21telephone, fax, Internet, or other electronic means.
22    (h) A consumer reporting agency that receives a request
23from a consumer to temporarily lift a freeze on a credit report
24pursuant to subsection (f), shall comply with the request no
25later than 3 business days after receiving the request.
26    (i) A consumer reporting agency shall remove or temporarily



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1lift a freeze placed on a consumer's credit report only in the
2following cases:
3        (1) upon consumer request, pursuant to subsection (f)
4    or subsection (l) of this Section; or
5        (2) if the consumer's credit report was frozen due to a
6    material misrepresentation of fact by the consumer.
7    If a consumer reporting agency intends to remove a freeze
8upon a consumer's credit report pursuant to this subsection,
9the consumer reporting agency shall notify the consumer in
10writing prior to removing the freeze on the consumer's credit
12    (j) If a third party requests access to a credit report on
13which a security freeze is in effect, and this request is in
14connection with an application for credit or any other use, and
15the consumer does not allow his or her credit report to be
16accessed for that specific party or period of time, the third
17party may treat the application as incomplete.
18    (k) If a consumer requests a security freeze, the credit
19reporting agency shall disclose to the consumer the process of
20placing and temporarily lifting a security freeze, and the
21process for allowing access to information from the consumer's
22credit report for a specific party or period of time while the
23freeze is in place.
24    (l) A security freeze shall remain in place until the
25consumer or person authorized under subsection (c) to act on
26behalf of a minor or disabled person requests, using a point of



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1contact designated by the consumer reporting agency, that the
2security freeze be removed. A credit reporting agency shall
3remove a security freeze within 3 business days of receiving a
4request for removal from the consumer, who provides:
5        (1) Proper identification;
6        (2) The unique personal identification number or
7    password or similar device provided by the consumer
8    reporting agency; and
9        (3) A fee, if applicable.
10    (m) A consumer reporting agency shall require proper
11identification of the person making a request to place or
12remove a security freeze and may require proper identification
13and proper authority from the person making the request to
14place or remove a freeze on behalf of the disabled person or
16    (n) The provisions of subsections (c) through (m) of this
17Section do not apply to the use of a consumer credit report by
18any of the following:
19        (1) A person or entity, or a subsidiary, affiliate, or
20    agent of that person or entity, or an assignee of a
21    financial obligation owing by the consumer to that person
22    or entity, or a prospective assignee of a financial
23    obligation owing by the consumer to that person or entity
24    in conjunction with the proposed purchase of the financial
25    obligation, with which the consumer has or had prior to
26    assignment an account or contract, including a demand



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1    deposit account, or to whom the consumer issued a
2    negotiable instrument, for the purposes of reviewing the
3    account or collecting the financial obligation owing for
4    the account, contract, or negotiable instrument. For
5    purposes of this subsection, "reviewing the account"
6    includes activities related to account maintenance,
7    monitoring, credit line increases, and account upgrades
8    and enhancements.
9        (2) A subsidiary, affiliate, agent, assignee, or
10    prospective assignee of a person to whom access has been
11    granted under subsection (f) of this Section for purposes
12    of facilitating the extension of credit or other
13    permissible use.
14        (3) Any state or local agency, law enforcement agency,
15    trial court, or private collection agency acting pursuant
16    to a court order, warrant, or subpoena.
17        (4) A child support agency acting pursuant to Title
18    IV-D of the Social Security Act.
19        (5) The State or its agents or assigns acting to
20    investigate fraud.
21        (6) The Department of Revenue or its agents or assigns
22    acting to investigate or collect delinquent taxes or unpaid
23    court orders or to fulfill any of its other statutory
24    responsibilities.
25        (7) The use of credit information for the purposes of
26    prescreening as provided for by the federal Fair Credit



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



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



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



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1describes the authority of the parent to act on behalf of the
2minor, or (3) a power of attorney that complies with the
3Illinois Power of Attorney Act.
4    "Proper identification" means information generally deemed
5sufficient to identify a person. Only if the consumer is unable
6to reasonably identify himself or herself with the information
7described above, may a consumer reporting agency require
8additional information concerning the consumer's employment
9and personal or family history in order to verify his or her
11    (r) Any person who violates this Section commits an
12unlawful practice within the meaning of this Act.
13(Source: P.A. 97-597, eff. 1-1-12; 97-1150, eff. 1-25-13.)".