Bill Text: IA SF2054 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act relating to consumer protection modifying provisions applicable to consumer security freezes and including effective date provisions. (See SF 2177.)

Spectrum: Strong Partisan Bill (Republican 15-1)

Status: (Introduced - Dead) 2018-01-30 - Subcommittee recommends passage. [SF2054 Detail]

Download: Iowa-2017-SF2054-Introduced.html

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Senate File 2054 - Introduced




                                 SENATE FILE       
                                 BY  ZAUN, CHAPMAN,
                                     CHELGREN, SINCLAIR,
                                     GREENE, D. JOHNSON,
                                     DAWSON, SCHNEIDER,
                                     CARLIN, EDLER,
                                     ROZENBOOM, BREITBACH,
                                     COSTELLO, SEGEBART,
                                     KAPUCIAN, and GUTH

                                      A BILL FOR

  1 An Act relating to consumer protection modifying provisions
  2    applicable to consumer security freezes and including
  3    effective date provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 714G.2, Code 2018, is amended to read as
  1  2 follows:
  1  3    714G.2  Security freeze.
  1  4    1.  A consumer may submit by certified mail to a consumer
  1  5 reporting agency a written request for a security freeze to
  1  6 a consumer reporting agency by first=class mail, telephone,
  1  7 facsimile, secure internet connection, secure electronic mail,
  1  8 or other secure electronic contact method. The consumer must
  1  9 submit proper identification and the applicable fee with the
  1 10 request. Within five three business days after receiving
  1 11 the request, the consumer reporting agency shall commence
  1 12 the security freeze. Within ten three business days after
  1 13 commencing the security freeze, the consumer reporting agency
  1 14 shall send a written confirmation to the consumer of the
  1 15 security freeze, a personal identification number or password,
  1 16 other than the consumer's social security number, for the
  1 17 consumer to use in authorizing the suspension or removal of
  1 18 the security freeze, including information on how the security
  1 19 freeze may be temporarily suspended.
  1 20    2.  a.  If a consumer requests a security freeze from a
  1 21 consumer reporting agency that compiles and maintains files
  1 22 on a nationwide basis, the consumer may request to have the
  1 23 security freeze applied to any other consumer reporting agency
  1 24 that compiles and maintains files on consumers on a nationwide
  1 25 basis.
  1 26    b.  For purposes of this subsection, "consumer reporting
  1 27 agency that compiles and maintains files on a nationwide basis"
  1 28  means the same as defined in 15 U.S.C. {1681a(p).
  1 29    Sec. 2.  Section 714G.3, subsection 1, Code 2018, is amended
  1 30 to read as follows:
  1 31    1.  A consumer may request that a security freeze be
  1 32 temporarily suspended to allow the consumer reporting agency to
  1 33 release the consumer credit report for a specific time period.
  1 34 The consumer reporting agency may shall develop procedures
  1 35 to expedite the receipt and processing of requests which may
  2  1 involve the use of telephones by first=class mail, telephone,
  2  2 facsimile transmissions, the secure internet connection, secure
  2  3 electronic mail, or other secure electronic media contact
  2  4 method. The consumer reporting agency shall comply with
  2  5 the request within three business days after receiving the
  2  6 consumer's written request, or within fifteen minutes after
  2  7 the consumer's request is received by the consumer reporting
  2  8 agency through facsimile, the secure internet connection,
  2  9 secure electronic mail, or other secure electronic contact
  2 10 method chosen by the consumer reporting agency, or the use of
  2 11 a telephone, during normal business hours. The consumer's
  2 12 request shall include all of the following:
  2 13    a.  Proper identification.
  2 14    b.  The personal identification number or password provided
  2 15 by the consumer reporting agency.
  2 16    c.  Explicit instructions of the specific time period
  2 17 designated for suspension of the security freeze.
  2 18    d.  Payment of the applicable fee.
  2 19    Sec. 3.  Section 714G.4, unnumbered paragraph 1, Code 2018,
  2 20 is amended to read as follows:
  2 21    A security freeze remains in effect until the consumer
  2 22 requests that the security freeze be removed. A consumer
  2 23 reporting agency shall remove a security freeze within three
  2 24 business days after receiving a request for removal that
  2 25 includes proper identification of the consumer, and the
  2 26 personal identification number or password provided by the
  2 27 consumer reporting agency, and payment of the applicable fee.
  2 28    Sec. 4.  Section 714G.5, Code 2018, is amended to read as
  2 29 follows:
  2 30    714G.5  Fees prohibited.
  2 31    1.  A consumer reporting agency shall not charge any fee to
  2 32 a consumer who is the victim of identity theft for commencing
  2 33 a security freeze, temporary suspension, or removal if with
  2 34 the initial security freeze request, the consumer submits a
  2 35 valid copy of the police report concerning the unlawful use of
  3  1 identification information by another person.
  3  2    2.  A consumer reporting agency may charge a fee not to
  3  3 exceed ten dollars to a consumer who is not the victim of
  3  4 identity theft for each security freeze, removal, or for
  3  5 reissuing a personal identification number or password if the
  3  6 consumer fails to retain the original number. The consumer
  3  7 reporting agency may charge a fee not to exceed twelve dollars
  3  8 for each temporary suspension of a security freeze.
  3  9    A consumer reporting agency shall not charge a fee to a
  3 10 consumer for providing any service pursuant to this chapter,
  3 11 including but not limited to placing, removing, temporarily
  3 12 suspending, or reinstating a security freeze.
  3 13    Sec. 5.  Section 714G.8A, subsection 1, paragraph d, Code
  3 14 2018, is amended by striking the paragraph.
  3 15    Sec. 6.  Section 714G.8A, subsection 3, paragraph d, Code
  3 16 2018, is amended by striking the paragraph.
  3 17    Sec. 7.  Section 714G.8A, subsection 5, Code 2018, is amended
  3 18 to read as follows:
  3 19    5.  a.  A consumer reporting agency may shall not charge
  3 20 a reasonable fee, not to exceed five dollars, for each the
  3 21  placement, or removal, or reinstatement of a protected consumer
  3 22 security freeze. A consumer reporting agency may not charge
  3 23 any other fee for a service performed pursuant to this section.
  3 24    b.  Notwithstanding paragraph "a", a fee may not be charged
  3 25 by a consumer reporting agency pursuant to either of the
  3 26 following:
  3 27    (1)  If the protected consumer's representative has obtained
  3 28 a police report or affidavit of alleged identity theft under
  3 29 section 715A.8 and submits a copy of the report or affidavit to
  3 30 the consumer reporting agency.
  3 31    (2)  A request for the commencement or removal of a protected
  3 32 consumer security freeze is for a protected consumer who is
  3 33 under the age of sixteen years at the time of the request and
  3 34 the consumer reporting agency has a consumer credit report
  3 35 pertaining to the protected consumer.
  4  1    Sec. 8.  EFFECTIVE DATE.  This Act, being deemed of immediate
  4  2 importance, takes effect upon enactment.
  4  3                           EXPLANATION
  4  4 The inclusion of this explanation does not constitute agreement with
  4  5 the explanation's substance by the members of the general assembly.
  4  6    This bill relates to consumer security freezes.
  4  7    Current law permits a consumer to submit a request for a
  4  8 security freeze via certified mail. The bill expands the
  4  9 methods permitted for a consumer to submit a request for
  4 10 a security freeze to allow such requests to be submitted
  4 11 via first=class mail, telephone, facsimile, secure internet
  4 12 connection, secure electronic mail, or other secure electronic
  4 13 contact method.
  4 14    The bill reduces the number of days by which a consumer
  4 15 reporting agency must commence a security freeze after
  4 16 receiving a request from five to three business days. The bill
  4 17 also reduces the number of days by which a consumer reporting
  4 18 agency must send written confirmation to a consumer after
  4 19 commencing a security freeze from ten to three business days.
  4 20    The bill provides that if a consumer requests a security
  4 21 freeze from a consumer reporting agency that compiles and
  4 22 maintains files on a nationwide basis, as defined in the bill,
  4 23 the consumer may request to have the security freeze applied to
  4 24 any other similar consumer reporting agency.
  4 25    The bill requires consumer reporting agencies to develop
  4 26 procedures to expedite the receipt and processing of security
  4 27 freeze suspension requests received via the same methods
  4 28 permitted for consumers to submit such requests. The bill
  4 29 requires a consumer reporting agency to commence a security
  4 30 freeze suspension within 15 minutes after receiving a request
  4 31 through telephone, facsimile, secure internet connection,
  4 32 secure electronic mail, or other secure electronic contact
  4 33 method.
  4 34    The bill prohibits consumer reporting agencies from charging
  4 35 fees to consumers for providing any service pursuant to Code
  5  1 chapter 714G, including but not limited to placing, removing,
  5  2 temporarily suspending, or reinstating a security freeze. The
  5  3 bill also prohibits consumer reporting agencies from charging
  5  4 fees for placing or removing a protected consumer security
  5  5 freeze pursuant to Code section 714G.8A.  The bill removes
  5  6 several references to payment of fees in Code chapter 714G.
  5  7    The bill takes effect upon enactment.
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