Full Text of SB1071 103rd General Assembly
SB1071sam001 103RD GENERAL ASSEMBLY | Sen. Sue Rezin Filed: 5/2/2023
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| 1 | | AMENDMENT TO SENATE BILL 1071
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1071 by replacing | 3 | | everything after the enacting clause with the following:
| 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 | 9 | | freeze on credit reports. | 10 | | (a) A credit card issuer who mails an offer or | 11 | | solicitation to apply for a
credit card and who receives a | 12 | | completed application in response to the offer
or
solicitation | 13 | | which lists an address that is not substantially the same as | 14 | | the
address on the offer or solicitation may not issue a credit | 15 | | card based on that
application until reasonable steps have | 16 | | been taken to verify the applicant's
change of address.
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| 1 | | (b) Any person who uses a consumer credit report in | 2 | | connection with the
approval of credit based on the | 3 | | application for an extension of credit, and who
has received | 4 | | notification of a police report filed with a consumer | 5 | | reporting
agency that the applicant has been a victim of | 6 | | financial
identity theft, as defined in Section 16-30 or | 7 | | 16G-15 of the Criminal Code of 1961 or the Criminal Code of | 8 | | 2012, may
not lend money or extend credit without taking | 9 | | reasonable steps to verify the
consumer's identity and confirm | 10 | | that the application for an extension of
credit
is not the | 11 | | result of financial identity theft.
| 12 | | (c) A consumer may request that a security freeze be | 13 | | placed on his or her credit report by sending a request in | 14 | | writing by certified mail or by at least one of telephone or | 15 | | electronic means to a consumer reporting agency at an address | 16 | | or telephone or electronic location designated by the consumer | 17 | | reporting agency to receive such requests. | 18 | | The following persons may request that a security freeze | 19 | | be placed on the credit report of a person with a disability: | 20 | | (1) a guardian of the person with a disability who is | 21 | | the subject of the request, appointed under Article XIa of | 22 | | the Probate Act of 1975; and | 23 | | (2) an agent of the person with a disability who is the | 24 | | subject of the request, under a written durable power of | 25 | | attorney that complies with the Illinois Power of Attorney | 26 | | Act. |
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| 1 | | The following persons may request that a security freeze | 2 | | be placed on the credit report of a minor: | 3 | | (1) a guardian of the minor who is the subject of the | 4 | | request, appointed under Article XI of the Probate Act of | 5 | | 1975; | 6 | | (2) a parent of the minor who is the subject of the | 7 | | request; and | 8 | | (3) a guardian appointed under the Juvenile Court Act | 9 | | of 1987 for a minor under the age of 18 who is the subject | 10 | | of the request or, with a court order authorizing the | 11 | | guardian consent power, for a youth who is the subject of | 12 | | the request who has attained the age of 18, but who is | 13 | | under the age of 21. | 14 | | This subsection (c) does not prevent a consumer reporting | 15 | | agency from advising a third party that a security freeze is in | 16 | | effect with respect to the consumer's credit report.
| 17 | | (d) A consumer reporting agency shall place a security | 18 | | freeze on a consumer's credit report no later than 5 business | 19 | | days after receiving a written request from the consumer:
| 20 | | (1) a written request described in subsection (c); and | 21 | | (2) proper identification. | 22 | | (e) Upon placing the security freeze on the consumer's | 23 | | credit report, the consumer reporting agency shall send to the | 24 | | consumer within 10 business days a written confirmation of the | 25 | | placement of the security freeze and a unique personal | 26 | | identification number or password or similar device, other |
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| 1 | | than the consumer's Social Security number, to be used by the | 2 | | consumer when providing authorization for the release of his | 3 | | or her credit report for a specific party or period of time.
| 4 | | (f) If the consumer wishes to allow his or her credit | 5 | | report to be accessed for a specific party or period of time | 6 | | while a freeze is in place, he or she shall contact the | 7 | | consumer reporting agency using a point of contact designated | 8 | | by the consumer reporting agency, request that the freeze be | 9 | | temporarily lifted, and provide the following:
| 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) the proper information regarding the third party | 15 | | or time period for which the report shall be available to | 16 | | users of the credit report.
| 17 | | A security freeze for a minor may not be temporarily | 18 | | lifted. This Section does not require a consumer reporting | 19 | | agency to provide to a minor or a parent or guardian of a minor | 20 | | on behalf of the minor a unique personal identification | 21 | | number, password, or similar device provided by the consumer | 22 | | reporting agency for the minor, or parent or guardian of the | 23 | | minor, to use to authorize the consumer reporting agency to | 24 | | release information from a minor. | 25 | | (g) A consumer reporting agency shall develop a contact | 26 | | method to receive and process a request from a consumer to |
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| 1 | | temporarily lift a freeze on a credit report pursuant to | 2 | | subsection (f) in an expedited manner.
| 3 | | A contact method under this subsection shall include:
(i) | 4 | | a postal address; and (ii) an electronic contact method chosen | 5 | | by the consumer reporting agency, which may include the use of | 6 | | telephone, fax, Internet, or other electronic means.
| 7 | | (h) A consumer reporting agency that receives a request | 8 | | from a consumer to temporarily lift a freeze on a credit report | 9 | | pursuant to subsection (f), shall comply with the request no | 10 | | later than 3 business days after receiving the request.
| 11 | | (i) A consumer reporting agency shall remove or | 12 | | temporarily lift a freeze placed on a consumer's credit report | 13 | | only in the following cases:
| 14 | | (1) upon consumer request, pursuant to subsection (f) | 15 | | or subsection (l) of this Section; or
| 16 | | (2) if the consumer's credit report was frozen due to | 17 | | a material misrepresentation of fact by the consumer.
| 18 | | If a consumer reporting agency intends to remove a freeze | 19 | | upon a consumer's credit report pursuant to this subsection, | 20 | | the consumer reporting agency shall notify the consumer in | 21 | | writing prior to removing the freeze on the consumer's credit | 22 | | report.
| 23 | | (j) If a third party requests access to a credit report on | 24 | | which a security freeze is in effect, and this request is in | 25 | | connection with an application for credit or any other use, | 26 | | and the consumer does not allow his or her credit report to be |
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| 1 | | accessed for that specific party or period of time, the third | 2 | | party may treat the application as incomplete.
| 3 | | (k) If a consumer requests a security freeze, the credit | 4 | | reporting agency shall disclose to the consumer the process of | 5 | | placing and temporarily lifting a security freeze, and the | 6 | | process for allowing access to information from the consumer's | 7 | | credit report for a specific party or period of time while the | 8 | | freeze is in place.
| 9 | | (l) A security freeze shall remain in place until the | 10 | | consumer or person authorized under subsection (c) to act on | 11 | | behalf of the minor or person with a disability who is the | 12 | | subject of the security freeze requests, using a point of | 13 | | contact designated by the consumer reporting agency, that the | 14 | | security freeze be removed. A credit reporting agency shall | 15 | | remove a security freeze within 3 business days of receiving a | 16 | | request for removal from the consumer, who provides:
| 17 | | (1) proper identification;
and | 18 | | (2) the unique personal identification number or | 19 | | password or similar device provided by the consumer | 20 | | reporting agency.
| 21 | | (m) A consumer reporting agency shall require proper | 22 | | identification of the person making a request to place or | 23 | | remove a security freeze and may require proper identification | 24 | | and proper authority from the person making the request to | 25 | | place or remove a freeze on behalf of the person with a | 26 | | disability or minor.
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| 1 | | (n) The provisions of subsections (c) through (m) of this | 2 | | Section do not apply to the use of a consumer credit report by | 3 | | any of the following:
| 4 | | (1) A person or entity, or a subsidiary, affiliate, or | 5 | | agent of that person or entity, or an assignee of a | 6 | | financial obligation owing by the consumer to that person | 7 | | or entity, or a prospective assignee of a financial | 8 | | obligation owing by the consumer to that person or entity | 9 | | in conjunction with the proposed purchase of the financial | 10 | | obligation, with which the consumer has or had prior to | 11 | | assignment an account or contract, including a demand | 12 | | deposit account, or to whom the consumer issued a | 13 | | negotiable instrument, for the purposes of reviewing the | 14 | | account or collecting the financial obligation owing for | 15 | | the account, contract, or negotiable instrument. For | 16 | | purposes of this subsection, "reviewing the account" | 17 | | includes activities related to account maintenance, | 18 | | monitoring, credit line increases, and account upgrades | 19 | | and enhancements.
| 20 | | (2) A subsidiary, affiliate, agent, assignee, or | 21 | | prospective assignee of a person to whom access has been | 22 | | granted under subsection (f) of this Section for purposes | 23 | | of facilitating the extension of credit or other | 24 | | permissible use.
| 25 | | (3) Any state or local agency, law enforcement agency, | 26 | | trial court, or private collection agency acting pursuant |
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| 1 | | to a court order, warrant, or subpoena.
| 2 | | (4) A child support agency acting pursuant to Title | 3 | | IV-D of the Social Security Act.
| 4 | | (5) The State or its agents or assigns acting to | 5 | | investigate fraud.
| 6 | | (6) The Department of Revenue or its agents or assigns | 7 | | acting to investigate or collect delinquent taxes or | 8 | | unpaid court orders or to fulfill any of its other | 9 | | statutory responsibilities.
| 10 | | (7) The use of credit information for the purposes of | 11 | | prescreening as provided for by the federal Fair Credit | 12 | | Reporting Act.
| 13 | | (8) Any person or entity administering a credit file | 14 | | monitoring subscription or similar service to which the | 15 | | consumer has subscribed.
| 16 | | (9) Any person or entity for the purpose of providing | 17 | | a consumer with a copy of his or her credit report or score | 18 | | upon the consumer's request.
| 19 | | (10) Any person using the information in connection | 20 | | with the underwriting of insurance.
| 21 | | (n-5) A consumer reporting agency may not impose a charge | 22 | | on a consumer for placing a freeze, removing a freeze, or | 23 | | temporarily lifting a freeze.
| 24 | | (o) If a security freeze is in place, a consumer reporting | 25 | | agency shall not change any of the following official | 26 | | information in a credit report without sending a written |
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| 1 | | confirmation of the change to the consumer within 30 days of | 2 | | the change being posted to the consumer's file: (i) name, (ii) | 3 | | date of birth, (iii) Social Security number, and (iv) address. | 4 | | Written confirmation is not required for technical | 5 | | modifications of a consumer's official information, including | 6 | | name and street abbreviations, complete spellings, or | 7 | | transposition of numbers or letters. In the case of an address | 8 | | change, the written confirmation shall be sent to both the new | 9 | | address and to the former address.
| 10 | | (p) The following entities are not required to place a | 11 | | security freeze in a consumer report, however, pursuant to | 12 | | paragraph (3) of this subsection, a consumer reporting agency | 13 | | acting as a reseller shall honor any security freeze placed on | 14 | | a consumer credit report by another consumer reporting agency:
| 15 | | (1) A check services or fraud prevention services | 16 | | company, which issues reports on incidents of fraud or | 17 | | authorizations for the purpose of approving or processing | 18 | | negotiable instruments, electronic funds transfers, or | 19 | | similar methods of payment.
| 20 | | (2) A deposit account information service company, | 21 | | which issues reports regarding account closures due to | 22 | | fraud, substantial overdrafts, ATM abuse, or similar | 23 | | negative information regarding a consumer to inquiring | 24 | | banks or other financial institutions for use only in | 25 | | reviewing a consumer request for a deposit account at the | 26 | | inquiring bank or financial institution.
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| 1 | | (3) A consumer reporting agency that:
| 2 | | (A) acts only to resell credit information by | 3 | | assembling and merging information contained in a | 4 | | database of one or more consumer reporting agencies; | 5 | | and
| 6 | | (B) does not maintain a permanent database of | 7 | | credit information from which new credit reports are | 8 | | produced.
| 9 | | (p-5) No consumer reporting agency may furnish a consumer | 10 | | report that is not requested by the consumer if the report is | 11 | | being procured based in whole or in part on the presence of an | 12 | | inquiry made in connection with a residential mortgage loan as | 13 | | defined by Section 103 of the Truth in Lending Act (15 U.S.C. | 14 | | 1602). | 15 | | (q) For purposes of this Section: | 16 | | "Credit report" has the same meaning as "consumer report", | 17 | | as ascribed to it in 15 U.S.C. Sec. 1681a(d). | 18 | | "Consumer reporting agency" has the meaning ascribed to it | 19 | | in 15 U.S.C. Sec. 1681a(f). | 20 | | "Security freeze" means
a notice placed in a consumer's | 21 | | credit report, at the request of the consumer and subject to | 22 | | certain exceptions, that prohibits the consumer reporting | 23 | | agency from releasing the consumer's credit report or score | 24 | | relating to an extension of credit, without the express | 25 | | authorization of the consumer.
| 26 | | "Extension of credit" does not include
an increase in an |
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| 1 | | existing open-end credit plan, as defined in Regulation Z of
| 2 | | the Federal Reserve System (12 C.F.R. 226.2), or any change to | 3 | | or review of an
existing credit account.
| 4 | | "Proper authority" means documentation that shows that a | 5 | | parent, guardian, or agent has authority to act on behalf of a | 6 | | minor or person with a disability. "Proper authority" includes | 7 | | (1) an order issued by a court of law that shows that a | 8 | | guardian has authority to act on behalf of a minor or person | 9 | | with a disability, (2) a written, notarized statement signed | 10 | | by a parent that expressly describes the authority of the | 11 | | parent to act on behalf of the minor, or (3) a durable power of | 12 | | attorney that complies with the Illinois Power of Attorney | 13 | | Act. | 14 | | "Proper identification" means information generally deemed | 15 | | sufficient to identify a person. Only if the consumer is | 16 | | unable to reasonably identify himself or herself with the | 17 | | information described above, may a consumer reporting agency | 18 | | require additional information concerning the consumer's | 19 | | employment and personal or family history in order to verify | 20 | | his or her identity.
| 21 | | (r) Any person who violates this Section commits an
| 22 | | unlawful practice within the meaning of this Act.
| 23 | | (Source: P.A. 99-143, eff. 7-27-15; 99-373, eff. 1-1-16; | 24 | | 99-642, eff. 7-28-16; 100-589, eff. 6-8-18.)".
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