Sen. Sue Rezin

Filed: 5/2/2023





10300SB1071sam001LRB103 05970 SPS 61270 a


2    AMENDMENT NO. ______. Amend Senate Bill 1071 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
9freeze on credit reports.
10    (a) A credit card issuer who mails an offer or
11solicitation to apply for a credit card and who receives a
12completed application in response to the offer or solicitation
13which lists an address that is not substantially the same as
14the address on the offer or solicitation may not issue a credit
15card based on that application until reasonable steps have
16been taken to verify the applicant's change of address.



10300SB1071sam001- 2 -LRB103 05970 SPS 61270 a

1    (b) Any person who uses a consumer credit report in
2connection with the approval of credit based on the
3application for an extension of credit, and who has received
4notification of a police report filed with a consumer
5reporting agency that the applicant has been a victim of
6financial identity theft, as defined in Section 16-30 or
716G-15 of the Criminal Code of 1961 or the Criminal Code of
82012, may not lend money or extend credit without taking
9reasonable steps to verify the consumer's identity and confirm
10that the application for an extension of credit is not the
11result of financial identity theft.
12    (c) A consumer may request that a security freeze be
13placed on his or her credit report by sending a request in
14writing by certified mail or by at least one of telephone or
15electronic means to a consumer reporting agency at an address
16or telephone or electronic location designated by the consumer
17reporting agency to receive such requests.
18    The following persons may request that a security freeze
19be 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.



10300SB1071sam001- 3 -LRB103 05970 SPS 61270 a

1    The following persons may request that a security freeze
2be 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
15agency from advising a third party that a security freeze is in
16effect with respect to the consumer's credit report.
17    (d) A consumer reporting agency shall place a security
18freeze on a consumer's credit report no later than 5 business
19days 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
23credit report, the consumer reporting agency shall send to the
24consumer within 10 business days a written confirmation of the
25placement of the security freeze and a unique personal
26identification number or password or similar device, other



10300SB1071sam001- 4 -LRB103 05970 SPS 61270 a

1than the consumer's Social Security number, to be used by the
2consumer when providing authorization for the release of his
3or her credit report for a specific party or period of time.
4    (f) If the consumer wishes to allow his or her credit
5report to be accessed for a specific party or period of time
6while a freeze is in place, he or she shall contact the
7consumer reporting agency using a point of contact designated
8by the consumer reporting agency, request that the freeze be
9temporarily 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
18lifted. This Section does not require a consumer reporting
19agency to provide to a minor or a parent or guardian of a minor
20on behalf of the minor a unique personal identification
21number, password, or similar device provided by the consumer
22reporting agency for the minor, or parent or guardian of the
23minor, to use to authorize the consumer reporting agency to
24release information from a minor.
25    (g) A consumer reporting agency shall develop a contact
26method to receive and process a request from a consumer to



10300SB1071sam001- 5 -LRB103 05970 SPS 61270 a

1temporarily lift a freeze on a credit report pursuant to
2subsection (f) in an expedited manner.
3    A contact method under this subsection shall include: (i)
4a postal address; and (ii) an electronic contact method chosen
5by the consumer reporting agency, which may include the use of
6telephone, fax, Internet, or other electronic means.
7    (h) A consumer reporting agency that receives a request
8from a consumer to temporarily lift a freeze on a credit report
9pursuant to subsection (f), shall comply with the request no
10later than 3 business days after receiving the request.
11    (i) A consumer reporting agency shall remove or
12temporarily lift a freeze placed on a consumer's credit report
13only 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
19upon a consumer's credit report pursuant to this subsection,
20the consumer reporting agency shall notify the consumer in
21writing prior to removing the freeze on the consumer's credit
23    (j) If a third party requests access to a credit report on
24which a security freeze is in effect, and this request is in
25connection with an application for credit or any other use,
26and the consumer does not allow his or her credit report to be



10300SB1071sam001- 6 -LRB103 05970 SPS 61270 a

1accessed for that specific party or period of time, the third
2party may treat the application as incomplete.
3    (k) If a consumer requests a security freeze, the credit
4reporting agency shall disclose to the consumer the process of
5placing and temporarily lifting a security freeze, and the
6process for allowing access to information from the consumer's
7credit report for a specific party or period of time while the
8freeze is in place.
9    (l) A security freeze shall remain in place until the
10consumer or person authorized under subsection (c) to act on
11behalf of the minor or person with a disability who is the
12subject of the security freeze requests, using a point of
13contact designated by the consumer reporting agency, that the
14security freeze be removed. A credit reporting agency shall
15remove a security freeze within 3 business days of receiving a
16request 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
22identification of the person making a request to place or
23remove a security freeze and may require proper identification
24and proper authority from the person making the request to
25place or remove a freeze on behalf of the person with a
26disability or minor.



10300SB1071sam001- 7 -LRB103 05970 SPS 61270 a

1    (n) The provisions of subsections (c) through (m) of this
2Section do not apply to the use of a consumer credit report by
3any 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



10300SB1071sam001- 8 -LRB103 05970 SPS 61270 a

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
22on a consumer for placing a freeze, removing a freeze, or
23temporarily lifting a freeze.
24    (o) If a security freeze is in place, a consumer reporting
25agency shall not change any of the following official
26information in a credit report without sending a written



10300SB1071sam001- 9 -LRB103 05970 SPS 61270 a

1confirmation of the change to the consumer within 30 days of
2the change being posted to the consumer's file: (i) name, (ii)
3date of birth, (iii) Social Security number, and (iv) address.
4Written confirmation is not required for technical
5modifications of a consumer's official information, including
6name and street abbreviations, complete spellings, or
7transposition of numbers or letters. In the case of an address
8change, the written confirmation shall be sent to both the new
9address and to the former address.
10    (p) The following entities are not required to place a
11security freeze in a consumer report, however, pursuant to
12paragraph (3) of this subsection, a consumer reporting agency
13acting as a reseller shall honor any security freeze placed on
14a 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.



10300SB1071sam001- 10 -LRB103 05970 SPS 61270 a

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
10report that is not requested by the consumer if the report is
11being procured based in whole or in part on the presence of an
12inquiry made in connection with a residential mortgage loan as
13defined by Section 103 of the Truth in Lending Act (15 U.S.C.
15    (q) For purposes of this Section:
16    "Credit report" has the same meaning as "consumer report",
17as ascribed to it in 15 U.S.C. Sec. 1681a(d).
18    "Consumer reporting agency" has the meaning ascribed to it
19in 15 U.S.C. Sec. 1681a(f).
20    "Security freeze" means a notice placed in a consumer's
21credit report, at the request of the consumer and subject to
22certain exceptions, that prohibits the consumer reporting
23agency from releasing the consumer's credit report or score
24relating to an extension of credit, without the express
25authorization of the consumer.
26    "Extension of credit" does not include an increase in an



10300SB1071sam001- 11 -LRB103 05970 SPS 61270 a

1existing open-end credit plan, as defined in Regulation Z of
2the Federal Reserve System (12 C.F.R. 226.2), or any change to
3or review of an existing credit account.
4    "Proper authority" means documentation that shows that a
5parent, guardian, or agent has authority to act on behalf of a
6minor or person with a disability. "Proper authority" includes
7(1) an order issued by a court of law that shows that a
8guardian has authority to act on behalf of a minor or person
9with a disability, (2) a written, notarized statement signed
10by a parent that expressly describes the authority of the
11parent to act on behalf of the minor, or (3) a durable power of
12attorney that complies with the Illinois Power of Attorney
14    "Proper identification" means information generally deemed
15sufficient to identify a person. Only if the consumer is
16unable to reasonably identify himself or herself with the
17information described above, may a consumer reporting agency
18require additional information concerning the consumer's
19employment and personal or family history in order to verify
20his or her identity.
21    (r) Any person who violates this Section commits an
22unlawful practice within the meaning of this Act.
23(Source: P.A. 99-143, eff. 7-27-15; 99-373, eff. 1-1-16;
2499-642, eff. 7-28-16; 100-589, eff. 6-8-18.)".