Bill Text: NY S06682 | 2013-2014 | General Assembly | Introduced
Bill Title: Relates to credit record freezes and protected minors.
Spectrum: Partisan Bill (Republican 7-0)
Status: (Introduced - Dead) 2014-06-17 - SUBSTITUTED BY A8955B [S06682 Detail]
Download: New_York-2013-S06682-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
6682
I N S E N A T E
February 26, 2014
___________
Introduced by Sens. ZELDIN, DeFRANCISCO, MARTINS, RANZENHOFER -- read
twice and ordered printed, and when printed to be committed to the
Committee on Consumer Protection
AN ACT to amend the general business law, in relation to credit record
freezes and protected minors
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 380-a of the general business law is amended by
2 adding six new subdivisions (o), (p), (q), (r), (s) and (t) to read as
3 follows:
4 (O) THE TERM "PROTECTED CONSUMER" SHALL MEAN AN INDIVIDUAL WHO IS
5 UNDER THE AGE OF SIXTEEN YEARS AT THE TIME A REQUEST FOR THE PLACEMENT
6 OF A SECURITY FREEZE IS MADE.
7 (P) THE TERM "RECORD" SHALL MEAN A COMPILATION OF INFORMATION THAT (1)
8 IDENTIFIES A PROTECTED CONSUMER; (2) IS CREATED BY A CONSUMER CREDIT
9 REPORTING AGENCY SOLELY FOR THE PURPOSE OF COMPLYING WITH SECTION THREE
10 HUNDRED EIGHTY-U OF THIS ARTICLE; AND (3) MAY NOT BE CREATED OR USED TO
11 CONSIDER THE PROTECTED CONSUMER'S CREDIT WORTHINESS, CREDIT STANDING,
12 CREDIT CAPACITY, CHARACTER, GENERAL REPUTATION, PERSONAL CHARACTER-
13 ISTICS, OR MODE OF LIVING FOR ANY PURPOSE LISTED IN THIS ARTICLE.
14 (Q) THE TERM "REPRESENTATIVE" MEANS A PERSON WHO PROVIDES TO A CONSUM-
15 ER CREDIT REPORTING AGENCY SUFFICIENT PROOF OF AUTHORITY TO ACT ON
16 BEHALF OF A PROTECTED CONSUMER.
17 (R) THE TERM "SECURITY FREEZE FOR A PROTECTED PERSON" MEANS (1) IF A
18 CONSUMER CREDIT REPORTING AGENCY DOES NOT HAVE A FILE PERTAINING TO A
19 PROTECTED CONSUMER, A RESTRICTION THAT: (I) IS PLACED ON THE PROTECTED
20 CONSUMER'S RECORD IN ACCORDANCE WITH THIS SECTION; AND (II) PROHIBITS
21 THE CONSUMER CREDIT REPORTING AGENCY FROM RELEASING THE PROTECTED
22 CONSUMER'S RECORD EXCEPT AS PROVIDED IN THIS SECTION; OR
23 (2) IF A CONSUMER CREDIT REPORTING AGENCY HAS A FILE PERTAINING TO THE
24 PROTECTED CONSUMER, A RESTRICTION THAT (I) IS PLACED ON THE PROTECTED
25 CONSUMER'S CONSUMER CREDIT REPORT IN ACCORDANCE WITH THIS SECTION; AND
26 (II) PROHIBITS THE CONSUMER CREDIT REPORTING AGENCY FROM RELEASING THE
27 PROTECTED CONSUMER'S CONSUMER CREDIT REPORT OR ANY INFORMATION DERIVED
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13240-06-4
S. 6682 2
1 FROM THE PROTECTED CONSUMER'S CONSUMER CREDIT REPORT EXCEPT AS PROVIDED
2 IN THIS SECTION.
3 (S)(1) THE TERM "SUFFICIENT PROOF OF AUTHORITY" MEANS DOCUMENTATION
4 THAT SHOWS A REPRESENTATIVE HAS AUTHORITY TO ACT ON BEHALF OF A
5 PROTECTED CONSUMER.
6 (2) THE TERM "SUFFICIENT PROOF OF AUTHORITY" MAY INCLUDE (I) AN ORDER
7 ISSUED BY A COURT OF LAW; OR (II) A WRITTEN, NOTARIZED STATEMENT SIGNED
8 BY A REPRESENTATIVE THAT EXPRESSLY DESCRIBES THE AUTHORITY OF THE REPRE-
9 SENTATIVE TO ACT ON BEHALF OF A PROTECTED CONSUMER.
10 (T)(1) THE TERM "SUFFICIENT PROOF OF IDENTIFICATION" MEANS INFORMATION
11 OR DOCUMENTATION THAT IDENTIFIES A PROTECTED CONSUMER OR A REPRESEN-
12 TATIVE OF A PROTECTED CONSUMER.
13 (2) THE TERM "SUFFICIENT PROOF OF IDENTIFICATION" MAY INCLUDE (I) A
14 SOCIAL SECURITY NUMBER OR A COPY OF A SOCIAL SECURITY CARD ISSUED BY THE
15 SOCIAL SECURITY ADMINISTRATION; (II) A CERTIFIED OR OFFICIAL COPY OF A
16 BIRTH CERTIFICATE ISSUED BY THE ENTITY AUTHORIZED TO ISSUE THE BIRTH
17 CERTIFICATE; OR (III) A COPY OF A DRIVER'S LICENSE, AN IDENTIFICATION
18 CARD ISSUED BY THE DEPARTMENT OF MOTOR VEHICLES, OR ANY OTHER GOVERN-
19 MENT-ISSUED PHOTO IDENTIFICATION.
20 S 2. Section 380-u of the general business law, as relettered by chap-
21 ter 63 of the laws of 2006, is relettered section 380-v and a new
22 section 380-u is added to read as follows:
23 S 380-U. SECURITY RECORD FREEZE FOR PROTECTED MINORS. (A) A CONSUMER
24 CREDIT REPORTING AGENCY SHALL PLACE A SECURITY FREEZE FOR A PROTECTED
25 CONSUMER IF:
26 (1) THE CONSUMER CREDIT REPORTING AGENCY RECEIVES A REQUEST FROM THE
27 PROTECTED CONSUMER'S REPRESENTATIVE FOR THE PLACEMENT OF THE SECURITY
28 FREEZE UNDER THIS SECTION; AND
29 (2) THE PROTECTED CONSUMER'S REPRESENTATIVE (I) SUBMITS THE REQUEST TO
30 THE CONSUMER CREDIT REPORTING AGENCY AT THE ADDRESS OR OTHER POINT OF
31 CONTACT AND IN THE MANNER SPECIFIED BY THE CONSUMER CREDIT REPORTING
32 AGENCY; (II) PROVIDES TO THE CONSUMER CREDIT REPORTING AGENCY SUFFICIENT
33 PROOF OF IDENTIFICATION OF THE PROTECTED CONSUMER AND THE REPRESEN-
34 TATIVE; (III) PROVIDES TO THE CONSUMER CREDIT REPORTING AGENCY SUFFI-
35 CIENT PROOF OF AUTHORITY TO ACT ON BEHALF OF THE PROTECTED CONSUMER; AND
36 (IV) PAYS TO THE CONSUMER CREDIT REPORTING AGENCY A FEE AS PROVIDED IN
37 THIS SECTION.
38 (B) IF A CONSUMER CREDIT REPORTING AGENCY DOES NOT HAVE A FILE
39 PERTAINING TO A PROTECTED CONSUMER WHEN THE CONSUMER CREDIT REPORTING
40 AGENCY RECEIVES A REQUEST UNDER SUBDIVISION (A) OF THIS SECTION, THE
41 CONSUMER CREDIT REPORTING AGENCY SHALL CREATE A RECORD FOR THE PROTECTED
42 CONSUMER.
43 (C) WITHIN THIRTY DAYS AFTER RECEIVING A REQUEST THAT MEETS THE
44 REQUIREMENTS OF PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION, A
45 CONSUMER CREDIT REPORTING AGENCY SHALL PLACE A SECURITY FREEZE FOR THE
46 PROTECTED CONSUMER ON THE RECORD CREATED FOR THE PROTECTED CONSUMER OR
47 ON THE FILE PERTAINING TO THE PROTECTED CONSUMER IN THE EVENT THAT THE
48 CONSUMER REPORTING AGENCY ALREADY HAS A FILE PERTAINING TO THE PROTECTED
49 CONSUMER.
50 (D) UNLESS A SECURITY FREEZE FOR A PROTECTED PERSON IS REMOVED IN
51 ACCORDANCE WITH THIS SECTION, A CONSUMER CREDIT REPORTING AGENCY MAY NOT
52 RELEASE THE PROTECTED CONSUMER'S CONSUMER CREDIT REPORT, ANY INFORMATION
53 DERIVED FROM THE PROTECTED CONSUMER'S CONSUMER REPORT, OR ANY RECORD
54 CREATED FOR THE PROTECTED CONSUMER.
55 (E) A SECURITY FREEZE FOR A PROTECTED CONSUMER PLACED UNDER THIS
56 SECTION SHALL REMAIN IN EFFECT UNTIL:
S. 6682 3
1 (1) THE PROTECTED CONSUMER OR THE PROTECTED CONSUMER'S REPRESENTATIVE
2 REQUESTS THE CONSUMER CREDIT REPORTING AGENCY TO REMOVE THE SECURITY
3 FREEZE FOR A PROTECTED PERSON IN ACCORDANCE WITH SUBDIVISION (F) OF THIS
4 SECTION; OR
5 (2) THE SECURITY FREEZE IS REMOVED IN ACCORDANCE WITH SUBDIVISION (I)
6 OF THIS SECTION.
7 (F) IF A PROTECTED CONSUMER OR A PROTECTED CONSUMER'S REPRESENTATIVE
8 WISHES TO REMOVE A SECURITY FREEZE FOR THE PROTECTED CONSUMER, THE
9 PROTECTED CONSUMER OR THE PROTECTED CONSUMER'S REPRESENTATIVE SHALL:
10 (1) SUBMIT A REQUEST FOR THE REMOVAL OF THE SECURITY FREEZE TO THE
11 CONSUMER CREDIT REPORTING AGENCY AT THE ADDRESS OR OTHER POINT OF
12 CONTACT AND IN THE MANNER SPECIFIED BY THE CONSUMER CREDIT REPORTING
13 AGENCY;
14 (2) PROVIDE TO THE CONSUMER CREDIT REPORTING AGENCY: (I) IN THE CASE
15 OF A REQUEST BY THE PROTECTED CONSUMER: (A) PROOF THAT THE SUFFICIENT
16 PROOF OF AUTHORITY FOR THE PROTECTED CONSUMER'S REPRESENTATIVE TO ACT ON
17 BEHALF OF THE PROTECTED CONSUMER IS NO LONGER VALID OR THAT THE
18 PROTECTED CONSUMER HAS ATTAINED THE AGE OF SIXTEEN; AND (B) SUFFICIENT
19 PROOF OF IDENTIFICATION OF THE PROTECTED CONSUMER; OR (II) IN THE CASE
20 OF A REQUEST BY THE REPRESENTATIVE OF A PROTECTED CONSUMER: (A) SUFFI-
21 CIENT PROOF OF IDENTIFICATION OF THE PROTECTED CONSUMER AND THE REPRE-
22 SENTATIVE; AND (B) SUFFICIENT PROOF OF AUTHORITY TO ACT ON BEHALF OF THE
23 PROTECTED CONSUMER; AND (C) PAY TO THE CONSUMER CREDIT REPORTING AGENCY
24 A FEE AS PROVIDED IN SUBDIVISION (H) OF THIS SECTION.
25 (G) WITHIN THIRTY DAYS AFTER RECEIVING A REQUEST THAT MEETS THE
26 REQUIREMENTS OF SUBDIVISION (F) OF THIS SECTION, THE CONSUMER CREDIT
27 REPORTING AGENCY SHALL REMOVE THE SECURITY FREEZE FOR THE PROTECTED
28 CONSUMER.
29 (H)(1) EXCEPT AS PROVIDED IN PARAGRAPH THREE OF THIS SUBDIVISION, A
30 CONSUMER CREDIT REPORTING AGENCY MAY NOT CHARGE A FEE FOR ANY SERVICE
31 PERFORMED UNDER THIS SECTION.
32 (2) A CONSUMER CREDIT REPORTING AGENCY MAY CHARGE A REASONABLE FEE,
33 NOT EXCEEDING FIFTEEN DOLLARS, FOR EACH PLACEMENT OR REMOVAL OF A SECU-
34 RITY FREEZE FOR A PROTECTED CONSUMER AS PROVIDED FOR IN SUBPARAGRAPH
35 (IV) OF PARAGRAPH TWO OF SUBDIVISION (A) OR CLAUSE (C) OF SUBPARAGRAPH
36 (II) OF PARAGRAPH TWO OF SUBDIVISION (F) OF THIS SECTION.
37 (3) NOTWITHSTANDING PARAGRAPH TWO OF THIS SUBDIVISION, A CONSUMER
38 CREDIT REPORTING AGENCY MAY NOT CHARGE ANY FEE UNDER THIS SECTION IF;
39 (I) THE PROTECTED CONSUMER'S REPRESENTATIVE: (A) HAS OBTAINED A REPORT
40 OF ALLEGED IDENTITY FRAUD AGAINST THE PROTECTED CONSUMER UNDER SECTIONS
41 190.77 THROUGH 190.80 OF THE PENAL LAW; AND (B) PROVIDES A COPY OF THE
42 REPORT TO THE CONSUMER CREDIT REPORTING AGENCY; OR (II) (A) A REQUEST
43 FOR THE PLACEMENT OR REMOVAL OF A SECURITY FREEZE IS FOR A PROTECTED
44 CONSUMER WHO IS UNDER THE AGE OF SIXTEEN YEARS AT THE TIME OF THE
45 REQUEST; AND (B) THE CONSUMER CREDIT REPORTING AGENCY HAS A CONSUMER
46 CREDIT REPORT PERTAINING TO THE PROTECTED CONSUMER.
47 (I) A CONSUMER CREDIT REPORTING AGENCY SHALL REMOVE A SECURITY FREEZE
48 FOR A PROTECTED CONSUMER OR DELETE A RECORD OF A PROTECTED CONSUMER IF
49 THE SECURITY FREEZE WAS PLACED OR THE RECORD WAS CREATED BASED ON A
50 MATERIAL MISREPRESENTATION OF FACT BY THE PROTECTED CONSUMER OR THE
51 PROTECTED CONSUMER'S REPRESENTATIVE.
52 (J) THIS SECTION DOES NOT APPLY TO:
53 (1) A PERSON ADMINISTERING A CREDIT FILE MONITORING SUBSCRIPTION
54 SERVICE TO WHICH: (I) THE PROTECTED CONSUMER HAS SUBSCRIBED; OR (II) THE
55 REPRESENTATIVE OF THE PROTECTED CONSUMER HAS SUBSCRIBED ON BEHALF OF THE
56 PROTECTED CONSUMER;
S. 6682 4
1 (2) A PERSON PROVIDING THE PROTECTED CONSUMER OR THE PROTECTED CONSUM-
2 ER'S REPRESENTATIVE WITH A COPY OF THE PROTECTED CONSUMER'S CONSUMER
3 CREDIT REPORT UPON THE REQUEST OF THE PROTECTED CONSUMER OR THE
4 PROTECTED CONSUMER'S REPRESENTATIVE;
5 (3)(I) AN ENTITY LISTED IN PARAGRAPHS THREE THROUGH EIGHT OF SUBDIVI-
6 SION (M) OF SECTION THREE HUNDRED EIGHTY-T OF THIS ARTICLE; (II) AN
7 ENTITY LISTED IN SUBDIVISION (P) OF SECTION THREE HUNDRED EIGHTY-T OF
8 THIS ARTICLE; OR (III) A CONSUMER CREDIT REPORTING AGENCY'S DATABASE OR
9 FILE THAT CONSISTS OF INFORMATION CONCERNING, AND USED FOR, ONE OR MORE
10 OF THE FOLLOWING: CRIMINAL RECORD INFORMATION, FRAUD PREVENTION OR
11 DETECTION, PERSONAL LOSS HISTORY INFORMATION, AND EMPLOYMENT, TENANT, OR
12 BACKGROUND SCREENING.
13 (K) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE EXCLUSIVE REMEDY
14 FOR A VIOLATION OF THIS SECTION SHALL BE IN AN ACTION COMMENCED BY THE
15 ATTORNEY GENERAL.
16 S 3. This act shall take effect January 1, 2015.
