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| Public Act 094-0074 |
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AN ACT concerning business.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Consumer Fraud and Deceptive Business | ||||
Practices Act is amended by changing Section 2MM as follows:
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(815 ILCS 505/2MM)
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Sec. 2MM. Verification of accuracy of credit reporting | ||||
information used to
extend consumers credit and security freeze | ||||
on credit report for identity theft victims.
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(a) A credit card issuer who mails an offer or solicitation | ||||
to apply for a
credit card and who receives a completed | ||||
application in response to the offer
or
solicitation which | ||||
lists an address that is not substantially the same as the
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address on the offer or solicitation may not issue a credit | ||||
card based on that
application until reasonable steps have been | ||||
taken to verify the applicant's
change of address.
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(b) Any person who uses a consumer credit report in | ||||
connection with the
approval of credit based on the application | ||||
for an extension of credit, and who
has received notification | ||||
of a police report filed with a consumer reporting
agency that | ||||
the applicant has been a victim of financial
identity theft, as | ||||
defined in Section 16G-15 of the Criminal Code of 1961, may
not | ||||
lend money or extend credit without taking reasonable steps to | ||||
verify the
consumer's identity and confirm that the application | ||||
for an extension of
credit
is not the result of financial | ||||
identity theft.
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(c) A consumer who has been the victim of identity theft | ||||
may place a security freeze on his or her credit report by | ||||
making a request in writing by certified mail to a consumer | ||||
credit reporting agency with a valid copy of a police report, | ||||
investigative report, or complaint that the consumer has filed | ||||
with a law enforcement agency about unlawful use of his or her | ||||
personal information by another person. A credit reporting | ||
agency shall not charge a fee for placing, removing, or | ||
removing for a specific party or period of time a security | ||
freeze on a credit report. A security freeze shall prohibit, | ||
subject to the exceptions under subsection (i) of this Section, | ||
the credit reporting agency from releasing the consumer's | ||
credit report or any information from it without the express | ||
authorization of the consumer. When a security freeze is in | ||
place, information from a consumer's credit report shall not be | ||
released to a third party without prior express authorization | ||
from the consumer. This subsection does not prevent a credit | ||
reporting agency from advising a third party that a security | ||
freeze is in effect with respect to the consumer's credit | ||
report.
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(d) A credit reporting agency shall place a security freeze | ||
on a consumer's credit report no later than 5 business days | ||
after receiving a written request from the consumer.
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(e) The credit reporting agency shall send a written | ||
confirmation of the security freeze to the consumer within 10 | ||
business days and shall provide the consumer with a unique | ||
personal identification number or password, other than the | ||
consumer's Social Security number, to be used by the consumer | ||
when providing authorization for the release of his or her | ||
credit for a specific party or period of time.
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(f) If the consumer wishes to allow his or her credit | ||
report to be accessed for a specific party or period of time | ||
while a freeze is in place, he or she shall contact the | ||
consumer credit reporting agency, request that the freeze be | ||
temporarily lifted, and provide the following:
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(1) Proper identification;
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(2) The unique personal identification number or | ||
password provided by the credit reporting agency; and
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(3) The proper information regarding the third party or | ||
time period for which the report shall be available to | ||
users of the credit report.
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(g) A credit reporting agency may develop procedures | ||
involving the use of telephone, fax, the Internet, or other | ||
electronic media to receive and process a request from a | ||
consumer to temporarily lift a freeze on a credit report | ||
pursuant to subsection (f) in an expedited manner.
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(h) A credit reporting agency that receives a request from | ||
a consumer to temporarily lift a freeze on a credit report | ||
pursuant to subsection (f), shall comply with the request no | ||
later than 3 business days after receiving the request.
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(i) A credit reporting agency shall remove or temporarily | ||
lift a freeze placed on a consumer's credit report only in the | ||
following cases:
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(1) upon consumer request, pursuant to subsection (f) | ||
or subsection (l) of this Section; or
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(2) if the consumer's credit report was frozen due to a | ||
material misrepresentation of fact by the consumer.
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If a consumer credit reporting agency intends to remove a | ||
freeze upon a consumer's credit report pursuant to this | ||
subsection, the consumer credit reporting agency shall notify | ||
the consumer in writing prior to removing the freeze on the | ||
consumer's credit report.
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(j) If a third party requests access to a credit report on | ||
which a security freeze is in effect, and this request is in | ||
connection with an application for credit or any other use, and | ||
the consumer does not allow his or her credit report to be | ||
accessed for that specific party or period of time, the third | ||
party may treat the application as incomplete.
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(k) If a consumer requests a security freeze, the credit | ||
reporting agency shall disclose to the consumer the process of | ||
placing and temporarily lifting a security freeze, and the | ||
process for allowing access to information from the consumer's | ||
credit report for a specific party or period of time while the | ||
freeze is in place.
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(l) A security freeze shall remain in place until the | ||
consumer requests that the security freeze be removed. A credit | ||
reporting agency shall remove a security freeze within 3 | ||
business days of receiving a request for removal from the | ||
consumer, who provides both of the following:
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(1) Proper identification; and
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(2) The unique personal identification number or | ||
password provided by the credit reporting agency.
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(m) A consumer credit reporting agency shall require proper | ||
identification of the person making a request to place or | ||
remove a security freeze.
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(n) The provisions of subsections (c) through (m) of this | ||
Section do not apply to the use of a consumer credit report by | ||
any of the following:
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(1) A person or entity, or a subsidiary, affiliate, or | ||
agent of that person or entity, or an assignee of a | ||
financial obligation owing by the consumer to that person | ||
or entity, or a prospective assignee of a financial | ||
obligation owing by the consumer to that person or entity | ||
in conjunction with the proposed purchase of the financial | ||
obligation, with which the consumer has or had prior to | ||
assignment an account or contract, including a demand | ||
deposit account, or to whom the consumer issued a | ||
negotiable instrument, for the purposes of reviewing the | ||
account or collecting the financial obligation owing for | ||
the account, contract, or negotiable instrument. For | ||
purposes of this subsection, "reviewing the account" | ||
includes activities related to account maintenance, | ||
monitoring, credit line increases, and account upgrades | ||
and enhancements.
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(2) A subsidiary, affiliate, agent, assignee, or | ||
prospective assignee of a person to whom access has been | ||
granted under subsection (f) of this Section for purposes | ||
of facilitating the extension of credit or other | ||
permissible use.
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(3) Any state or local agency, law enforcement agency, | ||
trial court, or private collection agency acting pursuant | ||
to a court order, warrant, or subpoena.
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(4) A child support agency acting pursuant to Title | ||
IV-D of the Social Security Act.
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(5) The relevant state agency or its agents or assigns | ||
acting to investigate Medicaid fraud.
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(6) The Department of Revenue or its agents or assigns | ||
acting to investigate or collect delinquent taxes or unpaid | ||
court orders or to fulfill any of its other statutory | ||
responsibilities.
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(7) The use of credit information for the purposes of | ||
prescreening as provided for by the federal Fair Credit | ||
Reporting Act.
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(8) Any person or entity administering a credit file | ||
monitoring subscription service to which the consumer has | ||
subscribed.
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(9) Any person or entity for the purpose of providing a | ||
consumer with a copy of his or her credit report upon the | ||
consumer's request.
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(o) If a security freeze is in place, a credit reporting | ||
agency shall not change any of the following official | ||
information in a credit report without sending a written | ||
confirmation of the change to the consumer within 30 days of | ||
the change being posted to the consumer's file: (i) name, (ii) | ||
date of birth, (iii) Social Security number, and (iv) address. | ||
Written confirmation is not required for technical | ||
modifications of a consumer's official information, including | ||
name and street abbreviations, complete spellings, or | ||
transposition of numbers or letters. In the case of an address | ||
change, the written confirmation shall be sent to both the new | ||
address and to the former address.
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(p) The following entities are not required to place a | ||
security freeze in a credit report, provided, however, that any | ||
person that is not required to place a security freeze on a | ||
credit report under paragraph (3) of this subsection, shall be | ||
subject to any security freeze placed on a credit report by | ||
another credit reporting agency from which it obtains | ||
information:
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(1) A check services or fraud prevention services | ||
company, which issues reports on incidents of fraud or | ||
authorizations for the purpose of approving or processing | ||
negotiable instruments, electronic funds transfers, or | ||
similar methods of payment.
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(2) A deposit account information service company, | ||
which issues reports regarding account closures due to | ||
fraud, substantial overdrafts, ATM abuse, or similar | ||
negative information regarding a consumer to inquiring | ||
banks or other financial institutions for use only in | ||
reviewing a consumer request for a deposit account at the | ||
inquiring bank or financial institution.
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(3) A credit reporting agency that:
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(A) acts only to resell credit information by | ||
assembling and merging information contained in a | ||
database of one or more credit reporting agencies; and
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(B) does not maintain a permanent database of | ||
credit information from which new credit reports are | ||
produced.
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(q)
(c) For purposes of this Section:
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"Extension
extension of credit" does not include
an | ||
increase in an existing open-end credit plan, as defined in | ||
Regulation Z of
the Federal Reserve System (12 C.F.R. 226.2), | ||
or any change to or review of an
existing credit account.
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"Proper identification" means information generally deemed | ||
sufficient to identify a person. Only if the consumer is unable | ||
to reasonably identify himself or herself with the information | ||
described above, may a consumer credit reporting agency require | ||
additional information concerning the consumer's employment | ||
and personal or family history in order to verify his or her | ||
identity.
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(r)
(d) Any person who violates this Section
subsection (a) | ||
or subsection (b) commits an
unlawful practice within the | ||
meaning of this Act.
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(Source: P.A. 93-195, eff. 1-1-04.)
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