Full Text of HB0586 102nd General Assembly
HB0586 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB0586 Introduced 2/8/2021, by Rep. Janet Yang Rohr SYNOPSIS AS INTRODUCED: |
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Amends the Consumer Fraud and Deceptive Business Practices Act. Permits a minor's parent or guardian to request that a security freeze be placed on the minor's credit file. Requires the security freeze request to be in writing and include (i) certain information about the parent or guardian making the request and (ii) certain information on the minor who is the subject of the security freeze request. Provides that a security freeze on a credit file for a minor may not be temporarily lifted. Defines "credit file".
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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 | 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.
| 17 | | (b) Any person who uses a consumer credit report in | 18 | | connection with the
approval of credit based on the | 19 | | application for an extension of credit, and who
has received | 20 | | notification of a police report filed with a consumer | 21 | | reporting
agency that the applicant has been a victim of | 22 | | financial
identity theft, as defined in Section 16-30 or | 23 | | 16G-15 of the Criminal Code of 1961 or the Criminal Code of |
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| 1 | | 2012, may
not lend money or extend credit without taking | 2 | | reasonable steps to verify the
consumer's identity and confirm | 3 | | that the application for an extension of
credit
is not the | 4 | | result of financial identity theft.
| 5 | | (c) A consumer may request that a security freeze be | 6 | | placed on his or her credit report by sending a request in | 7 | | writing by certified mail or by at least one of telephone or | 8 | | electronic means to a consumer reporting agency at an address | 9 | | or telephone or electronic location designated by the consumer | 10 | | reporting agency to receive such requests. | 11 | | The following persons may request that a security freeze | 12 | | be placed on the credit report of a person with a disability: | 13 | | (1) a guardian of the person with a disability who is | 14 | | the subject of the request, appointed under Article XIa of | 15 | | the Probate Act of 1975; and | 16 | | (2) an agent of the person with a disability who is the | 17 | | subject of the request, under a written durable power of | 18 | | attorney that complies with the Illinois Power of Attorney | 19 | | Act. | 20 | | The following persons may request that a security freeze | 21 | | be placed on the credit report of a minor: | 22 | | (1) a guardian of the minor who is the subject of the | 23 | | request, appointed under Article XI of the Probate Act of | 24 | | 1975; | 25 | | (2) a parent of the minor who is the subject of the | 26 | | request; and |
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| 1 | | (3) a guardian appointed under the Juvenile Court Act | 2 | | of 1987 for a minor under the age of 18 who is the subject | 3 | | of the request or, with a court order authorizing the | 4 | | guardian consent power, for a youth who is the subject of | 5 | | the request who has attained the age of 18, but who is | 6 | | under the age of 21. | 7 | | This subsection (c) does not prevent a consumer reporting | 8 | | agency from advising a third party that a security freeze is in | 9 | | effect with respect to the consumer's credit report.
| 10 | | (d) A consumer reporting agency shall place a security | 11 | | freeze on a consumer's credit report no later than 5 business | 12 | | days after receiving a written request from the consumer:
| 13 | | (1) a written request described in subsection (c); and | 14 | | (2) proper identification. | 15 | | (e) Upon placing the security freeze on the consumer's | 16 | | credit report, the consumer reporting agency shall send to the | 17 | | consumer within 10 business days a written confirmation of the | 18 | | placement of the security freeze and a unique personal | 19 | | identification number or password or similar device, other | 20 | | than the consumer's Social Security number, to be used by the | 21 | | consumer when providing authorization for the release of his | 22 | | or her credit report for a specific party or period of time.
| 23 | | (f) If the consumer wishes to allow his or her credit | 24 | | report to be accessed for a specific party or period of time | 25 | | while a freeze is in place, he or she shall contact the | 26 | | consumer reporting agency using a point of contact designated |
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| 1 | | by the consumer reporting agency, request that the freeze be | 2 | | temporarily lifted, and provide the following:
| 3 | | (1) proper identification;
| 4 | | (2) the unique personal identification number or | 5 | | password or similar device provided by the consumer | 6 | | reporting agency;
and | 7 | | (3) the proper information regarding the third party | 8 | | or time period for which the report shall be available to | 9 | | users of the credit report.
| 10 | | A security freeze for a minor may not be temporarily | 11 | | lifted. This Section does not require a consumer reporting | 12 | | agency to provide to a minor or a parent or guardian of a minor | 13 | | on behalf of the minor a unique personal identification | 14 | | number, password, or similar device provided by the consumer | 15 | | reporting agency for the minor, or parent or guardian of the | 16 | | minor, to use to authorize the consumer reporting agency to | 17 | | release information from a minor. | 18 | | (f-5) The following persons may request that a security | 19 | | freeze 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, of 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's consent power, of 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 | | (f-10) A request under subsection (f-5) must be in writing | 6 | | and must contain: | 7 | | (1) The following information with respect to the | 8 | | parent or guardian: | 9 | | (A) complete name, including any suffix; | 10 | | (B) a complete address; | 11 | | (C) a copy of the person's social security card or | 12 | | a certified or official copy of the person's birth | 13 | | certificate; and | 14 | | (D) a copy of the person's driver's license, | 15 | | identification card issued by the Secretary of State | 16 | | or any other government-issued identification, or a | 17 | | copy of a utility bill that shows name and home | 18 | | address. | 19 | | (2) The following information with respect to the | 20 | | protected consumer or minor who is
the subject of the | 21 | | freeze: | 22 | | (A) complete name, including any suffix; | 23 | | (B) a complete address; | 24 | | (C) a copy of a social security card; | 25 | | (D) for a minor, a certified or official copy of | 26 | | the minor's birth certificate; and |
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| 1 | | (E) for a person under guardianship or power of | 2 | | attorney, an order issued by a court of law, a lawfully | 3 | | executed and valid power of attorney, or a written, | 4 | | signed, and notarized statement that expressly | 5 | | describes the authority of the person making the | 6 | | request to act on behalf of the protected consumer. | 7 | | A security freeze on a credit file for a minor may not be | 8 | | temporarily lifted. | 9 | | (g) A consumer reporting agency shall develop a contact | 10 | | method to receive and process a request from a consumer to | 11 | | temporarily lift a freeze on a credit report pursuant to | 12 | | subsection (f) in an expedited manner.
| 13 | | A contact method under this subsection shall include:
(i) | 14 | | a postal address; and (ii) an electronic contact method chosen | 15 | | by the consumer reporting agency, which may include the use of | 16 | | telephone, fax, Internet, or other electronic means.
| 17 | | (h) A consumer reporting agency that receives a request | 18 | | from a consumer to temporarily lift a freeze on a credit report | 19 | | pursuant to subsection (f), shall comply with the request no | 20 | | later than 3 business days after receiving the request.
| 21 | | (i) A consumer reporting agency shall remove or | 22 | | temporarily lift a freeze placed on a consumer's credit report | 23 | | only in the following cases:
| 24 | | (1) upon consumer request, pursuant to subsection (f) | 25 | | or subsection (l) of this Section; or
| 26 | | (2) if the consumer's credit report was frozen due to |
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| 1 | | a material misrepresentation of fact by the consumer.
| 2 | | If a consumer reporting agency intends to remove a freeze | 3 | | upon a consumer's credit report pursuant to this subsection, | 4 | | the consumer reporting agency shall notify the consumer in | 5 | | writing prior to removing the freeze on the consumer's credit | 6 | | report.
| 7 | | (j) If a third party requests access to a credit report on | 8 | | which a security freeze is in effect, and this request is in | 9 | | connection with an application for credit or any other use, | 10 | | and the consumer does not allow his or her credit report to be | 11 | | accessed for that specific party or period of time, the third | 12 | | party may treat the application as incomplete.
| 13 | | (k) If a consumer requests a security freeze, the credit | 14 | | reporting agency shall disclose to the consumer the process of | 15 | | placing and temporarily lifting a security freeze, and the | 16 | | process for allowing access to information from the consumer's | 17 | | credit report for a specific party or period of time while the | 18 | | freeze is in place.
| 19 | | (l) A security freeze shall remain in place until the | 20 | | consumer or person authorized under subsection (c) to act on | 21 | | behalf of the minor or person with a disability who is the | 22 | | subject of the security freeze requests, using a point of | 23 | | contact designated by the consumer reporting agency, that the | 24 | | security freeze be removed. A credit reporting agency shall | 25 | | remove a security freeze within 3 business days of receiving a | 26 | | request for removal from the consumer, who provides:
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| 1 | | (1) proper identification;
and | 2 | | (2) the unique personal identification number or | 3 | | password or similar device provided by the consumer | 4 | | reporting agency.
| 5 | | (m) A consumer reporting agency shall require proper | 6 | | identification of the person making a request to place or | 7 | | remove a security freeze and may require proper identification | 8 | | and proper authority from the person making the request to | 9 | | place or remove a freeze on behalf of the person with a | 10 | | disability or minor.
| 11 | | (n) The provisions of subsections (c) through (m) of this | 12 | | Section do not apply to the use of a consumer credit report by | 13 | | any of the following:
| 14 | | (1) A person or entity, or a subsidiary, affiliate, or | 15 | | agent of that person or entity, or an assignee of a | 16 | | financial obligation owing by the consumer to that person | 17 | | or entity, or a prospective assignee of a financial | 18 | | obligation owing by the consumer to that person or entity | 19 | | in conjunction with the proposed purchase of the financial | 20 | | obligation, with which the consumer has or had prior to | 21 | | assignment an account or contract, including a demand | 22 | | deposit account, or to whom the consumer issued a | 23 | | negotiable instrument, for the purposes of reviewing the | 24 | | account or collecting the financial obligation owing for | 25 | | the account, contract, or negotiable instrument. For | 26 | | purposes of this subsection, "reviewing the account" |
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| 1 | | includes activities related to account maintenance, | 2 | | monitoring, credit line increases, and account upgrades | 3 | | and enhancements.
| 4 | | (2) A subsidiary, affiliate, agent, assignee, or | 5 | | prospective assignee of a person to whom access has been | 6 | | granted under subsection (f) of this Section for purposes | 7 | | of facilitating the extension of credit or other | 8 | | permissible use.
| 9 | | (3) Any state or local agency, law enforcement agency, | 10 | | trial court, or private collection agency acting pursuant | 11 | | to a court order, warrant, or subpoena.
| 12 | | (4) A child support agency acting pursuant to Title | 13 | | IV-D of the Social Security Act.
| 14 | | (5) The State or its agents or assigns acting to | 15 | | investigate fraud.
| 16 | | (6) The Department of Revenue or its agents or assigns | 17 | | acting to investigate or collect delinquent taxes or | 18 | | unpaid court orders or to fulfill any of its other | 19 | | statutory responsibilities.
| 20 | | (7) The use of credit information for the purposes of | 21 | | prescreening as provided for by the federal Fair Credit | 22 | | Reporting Act.
| 23 | | (8) Any person or entity administering a credit file | 24 | | monitoring subscription or similar service to which the | 25 | | consumer has subscribed.
| 26 | | (9) Any person or entity for the purpose of providing |
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| 1 | | a consumer with a copy of his or her credit report or score | 2 | | upon the consumer's request.
| 3 | | (10) Any person using the information in connection | 4 | | with the underwriting of insurance.
| 5 | | (n-5) A consumer reporting agency may not impose a charge | 6 | | on a consumer for placing a freeze, removing a freeze, or | 7 | | temporarily lifting a freeze.
| 8 | | (o) If a security freeze is in place, a consumer reporting | 9 | | agency shall not change any of the following official | 10 | | information in a credit report without sending a written | 11 | | confirmation of the change to the consumer within 30 days of | 12 | | the change being posted to the consumer's file: (i) name, (ii) | 13 | | date of birth, (iii) Social Security number, and (iv) address. | 14 | | Written confirmation is not required for technical | 15 | | modifications of a consumer's official information, including | 16 | | name and street abbreviations, complete spellings, or | 17 | | transposition of numbers or letters. In the case of an address | 18 | | change, the written confirmation shall be sent to both the new | 19 | | address and to the former address.
| 20 | | (p) The following entities are not required to place a | 21 | | security freeze in a consumer report, however, pursuant to | 22 | | paragraph (3) of this subsection, a consumer reporting agency | 23 | | acting as a reseller shall honor any security freeze placed on | 24 | | a consumer credit report by another consumer reporting agency:
| 25 | | (1) A check services or fraud prevention services | 26 | | company, which issues reports on incidents of fraud or |
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| 1 | | authorizations for the purpose of approving or processing | 2 | | negotiable instruments, electronic funds transfers, or | 3 | | similar methods of payment.
| 4 | | (2) A deposit account information service company, | 5 | | which issues reports regarding account closures due to | 6 | | fraud, substantial overdrafts, ATM abuse, or similar | 7 | | negative information regarding a consumer to inquiring | 8 | | banks or other financial institutions for use only in | 9 | | reviewing a consumer request for a deposit account at the | 10 | | inquiring bank or financial institution.
| 11 | | (3) A consumer reporting agency that:
| 12 | | (A) acts only to resell credit information by | 13 | | assembling and merging information contained in a | 14 | | database of one or more consumer reporting agencies; | 15 | | and
| 16 | | (B) does not maintain a permanent database of | 17 | | credit information from which new credit reports are | 18 | | produced.
| 19 | | (q) For purposes of this Section: | 20 | | "Credit file" has the same meaning as provided for "file" | 21 | | in 15 U.S.C. 1681a(g). | 22 | | "Credit report" has the same meaning as "consumer report", | 23 | | as ascribed to it in 15 U.S.C. Sec. 1681a(d). | 24 | | "Consumer reporting agency" has the meaning ascribed to it | 25 | | in 15 U.S.C. Sec. 1681a(f). | 26 | | "Security freeze" means
a notice placed in a consumer's |
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| 1 | | credit report, at the request of the consumer and subject to | 2 | | certain exceptions, that prohibits the consumer reporting | 3 | | agency from releasing the consumer's credit report or score | 4 | | relating to an extension of credit, without the express | 5 | | authorization of the consumer.
| 6 | | "Extension of credit" does not include
an increase in an | 7 | | existing open-end credit plan, as defined in Regulation Z of
| 8 | | the Federal Reserve System (12 C.F.R. 226.2), or any change to | 9 | | or review of an
existing credit account.
| 10 | | "Proper authority" means documentation that shows that a | 11 | | parent, guardian, or agent has authority to act on behalf of a | 12 | | minor or person with a disability. "Proper authority" includes | 13 | | (1) an order issued by a court of law that shows that a | 14 | | guardian has authority to act on behalf of a minor or person | 15 | | with a disability, (2) a written, notarized statement signed | 16 | | by a parent that expressly describes the authority of the | 17 | | parent to act on behalf of the minor, or (3) a durable power of | 18 | | attorney that complies with the Illinois Power of Attorney | 19 | | Act. | 20 | | "Proper identification" means information generally deemed | 21 | | sufficient to identify a person. Only if the consumer is | 22 | | unable to reasonably identify himself or herself with the | 23 | | information described above, may a consumer reporting agency | 24 | | require additional information concerning the consumer's | 25 | | employment and personal or family history in order to verify | 26 | | his or her identity.
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| 1 | | (r) Any person who violates this Section commits an
| 2 | | unlawful practice within the meaning of this Act.
| 3 | | (Source: P.A. 99-143, eff. 7-27-15; 99-373, eff. 1-1-16; | 4 | | 99-642, eff. 7-28-16; 100-589, eff. 6-8-18.)
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