Bill Amendment: IL SB1071 | 2023-2024 | 103rd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: GOVERNMENT-TECH
Status: 2023-05-19 - Rule 19(a) / Re-referred to Rules Committee [SB1071 Detail]
Download: Illinois-2023-SB1071-Senate_Amendment_001.html
Bill Title: GOVERNMENT-TECH
Status: 2023-05-19 - Rule 19(a) / Re-referred to Rules Committee [SB1071 Detail]
Download: Illinois-2023-SB1071-Senate_Amendment_001.html
| |||||||
| |||||||
| |||||||
1 | AMENDMENT TO SENATE BILL 1071
| ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 1071 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
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.
|
| |||||||
| |||||||
1 | (b) Any person who uses a consumer credit report in | ||||||
2 | connection with the
approval of credit based on the | ||||||
3 | application for an extension of credit, and who
has received | ||||||
4 | notification of a police report filed with a consumer | ||||||
5 | reporting
agency that the applicant has been a victim of | ||||||
6 | financial
identity theft, as defined in Section 16-30 or | ||||||
7 | 16G-15 of the Criminal Code of 1961 or the Criminal Code of | ||||||
8 | 2012, may
not lend money or extend credit without taking | ||||||
9 | reasonable steps to verify the
consumer's identity and confirm | ||||||
10 | that the application for an extension of
credit
is not the | ||||||
11 | result of financial identity theft.
| ||||||
12 | (c) A consumer may request that a security freeze be | ||||||
13 | placed on his or her credit report by sending a request in | ||||||
14 | writing by certified mail or by at least one of telephone or | ||||||
15 | electronic means to a consumer reporting agency at an address | ||||||
16 | or telephone or electronic location designated by the consumer | ||||||
17 | reporting agency to receive such requests. | ||||||
18 | The following persons may request that a security freeze | ||||||
19 | be 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. |
| |||||||
| |||||||
1 | The following persons may request that a security freeze | ||||||
2 | be 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 | ||||||
15 | agency from advising a third party that a security freeze is in | ||||||
16 | effect with respect to the consumer's credit report.
| ||||||
17 | (d) A consumer reporting agency shall place a security | ||||||
18 | freeze on a consumer's credit report no later than 5 business | ||||||
19 | days 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 | ||||||
23 | credit report, the consumer reporting agency shall send to the | ||||||
24 | consumer within 10 business days a written confirmation of the | ||||||
25 | placement of the security freeze and a unique personal | ||||||
26 | identification number or password or similar device, other |
| |||||||
| |||||||
1 | than the consumer's Social Security number, to be used by the | ||||||
2 | consumer when providing authorization for the release of his | ||||||
3 | or her credit report for a specific party or period of time.
| ||||||
4 | (f) If the consumer wishes to allow his or her credit | ||||||
5 | report to be accessed for a specific party or period of time | ||||||
6 | while a freeze is in place, he or she shall contact the | ||||||
7 | consumer reporting agency using a point of contact designated | ||||||
8 | by the consumer reporting agency, request that the freeze be | ||||||
9 | temporarily 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 | ||||||
18 | lifted. This Section does not require a consumer reporting | ||||||
19 | agency to provide to a minor or a parent or guardian of a minor | ||||||
20 | on behalf of the minor a unique personal identification | ||||||
21 | number, password, or similar device provided by the consumer | ||||||
22 | reporting agency for the minor, or parent or guardian of the | ||||||
23 | minor, to use to authorize the consumer reporting agency to | ||||||
24 | release information from a minor. | ||||||
25 | (g) A consumer reporting agency shall develop a contact | ||||||
26 | method to receive and process a request from a consumer to |
| |||||||
| |||||||
1 | temporarily lift a freeze on a credit report pursuant to | ||||||
2 | subsection (f) in an expedited manner.
| ||||||
3 | A contact method under this subsection shall include:
(i) | ||||||
4 | a postal address; and (ii) an electronic contact method chosen | ||||||
5 | by the consumer reporting agency, which may include the use of | ||||||
6 | telephone, fax, Internet, or other electronic means.
| ||||||
7 | (h) A consumer reporting agency that receives a request | ||||||
8 | from a consumer to temporarily lift a freeze on a credit report | ||||||
9 | pursuant to subsection (f), shall comply with the request no | ||||||
10 | later than 3 business days after receiving the request.
| ||||||
11 | (i) A consumer reporting agency shall remove or | ||||||
12 | temporarily lift a freeze placed on a consumer's credit report | ||||||
13 | only 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 | ||||||
19 | upon a consumer's credit report pursuant to this subsection, | ||||||
20 | the consumer reporting agency shall notify the consumer in | ||||||
21 | writing prior to removing the freeze on the consumer's credit | ||||||
22 | report.
| ||||||
23 | (j) If a third party requests access to a credit report on | ||||||
24 | which a security freeze is in effect, and this request is in | ||||||
25 | connection with an application for credit or any other use, | ||||||
26 | and the consumer does not allow his or her credit report to be |
| |||||||
| |||||||
1 | accessed for that specific party or period of time, the third | ||||||
2 | party may treat the application as incomplete.
| ||||||
3 | (k) If a consumer requests a security freeze, the credit | ||||||
4 | reporting agency shall disclose to the consumer the process of | ||||||
5 | placing and temporarily lifting a security freeze, and the | ||||||
6 | process for allowing access to information from the consumer's | ||||||
7 | credit report for a specific party or period of time while the | ||||||
8 | freeze is in place.
| ||||||
9 | (l) A security freeze shall remain in place until the | ||||||
10 | consumer or person authorized under subsection (c) to act on | ||||||
11 | behalf of the minor or person with a disability who is the | ||||||
12 | subject of the security freeze requests, using a point of | ||||||
13 | contact designated by the consumer reporting agency, that the | ||||||
14 | security freeze be removed. A credit reporting agency shall | ||||||
15 | remove a security freeze within 3 business days of receiving a | ||||||
16 | request 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 | ||||||
22 | identification of the person making a request to place or | ||||||
23 | remove a security freeze and may require proper identification | ||||||
24 | and proper authority from the person making the request to | ||||||
25 | place or remove a freeze on behalf of the person with a | ||||||
26 | disability or minor.
|
| |||||||
| |||||||
1 | (n) The provisions of subsections (c) through (m) of this | ||||||
2 | Section do not apply to the use of a consumer credit report by | ||||||
3 | any 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 |
| |||||||
| |||||||
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 | ||||||
22 | on a consumer for placing a freeze, removing a freeze, or | ||||||
23 | temporarily lifting a freeze.
| ||||||
24 | (o) If a security freeze is in place, a consumer reporting | ||||||
25 | agency shall not change any of the following official | ||||||
26 | information in a credit report without sending a written |
| |||||||
| |||||||
1 | confirmation of the change to the consumer within 30 days of | ||||||
2 | the change being posted to the consumer's file: (i) name, (ii) | ||||||
3 | date of birth, (iii) Social Security number, and (iv) address. | ||||||
4 | Written confirmation is not required for technical | ||||||
5 | modifications of a consumer's official information, including | ||||||
6 | name and street abbreviations, complete spellings, or | ||||||
7 | transposition of numbers or letters. In the case of an address | ||||||
8 | change, the written confirmation shall be sent to both the new | ||||||
9 | address and to the former address.
| ||||||
10 | (p) The following entities are not required to place a | ||||||
11 | security freeze in a consumer report, however, pursuant to | ||||||
12 | paragraph (3) of this subsection, a consumer reporting agency | ||||||
13 | acting as a reseller shall honor any security freeze placed on | ||||||
14 | a 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.
|
| |||||||
| |||||||
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 | ||||||
10 | report that is not requested by the consumer if the report is | ||||||
11 | being procured based in whole or in part on the presence of an | ||||||
12 | inquiry made in connection with a residential mortgage loan as | ||||||
13 | defined by Section 103 of the Truth in Lending Act (15 U.S.C. | ||||||
14 | 1602). | ||||||
15 | (q) For purposes of this Section: | ||||||
16 | "Credit report" has the same meaning as "consumer report", | ||||||
17 | as ascribed to it in 15 U.S.C. Sec. 1681a(d). | ||||||
18 | "Consumer reporting agency" has the meaning ascribed to it | ||||||
19 | in 15 U.S.C. Sec. 1681a(f). | ||||||
20 | "Security freeze" means
a notice placed in a consumer's | ||||||
21 | credit report, at the request of the consumer and subject to | ||||||
22 | certain exceptions, that prohibits the consumer reporting | ||||||
23 | agency from releasing the consumer's credit report or score | ||||||
24 | relating to an extension of credit, without the express | ||||||
25 | authorization of the consumer.
| ||||||
26 | "Extension of credit" does not include
an increase in an |
| |||||||
| |||||||
1 | existing open-end credit plan, as defined in Regulation Z of
| ||||||
2 | the Federal Reserve System (12 C.F.R. 226.2), or any change to | ||||||
3 | or review of an
existing credit account.
| ||||||
4 | "Proper authority" means documentation that shows that a | ||||||
5 | parent, guardian, or agent has authority to act on behalf of a | ||||||
6 | minor or person with a disability. "Proper authority" includes | ||||||
7 | (1) an order issued by a court of law that shows that a | ||||||
8 | guardian has authority to act on behalf of a minor or person | ||||||
9 | with a disability, (2) a written, notarized statement signed | ||||||
10 | by a parent that expressly describes the authority of the | ||||||
11 | parent to act on behalf of the minor, or (3) a durable power of | ||||||
12 | attorney that complies with the Illinois Power of Attorney | ||||||
13 | Act. | ||||||
14 | "Proper identification" means information generally deemed | ||||||
15 | sufficient to identify a person. Only if the consumer is | ||||||
16 | unable to reasonably identify himself or herself with the | ||||||
17 | information described above, may a consumer reporting agency | ||||||
18 | require additional information concerning the consumer's | ||||||
19 | employment and personal or family history in order to verify | ||||||
20 | his or her identity.
| ||||||
21 | (r) Any person who violates this Section commits an
| ||||||
22 | unlawful practice within the meaning of this Act.
| ||||||
23 | (Source: P.A. 99-143, eff. 7-27-15; 99-373, eff. 1-1-16; | ||||||
24 | 99-642, eff. 7-28-16; 100-589, eff. 6-8-18.)".
|