Bill Text: IL HB3380 | 2013-2014 | 98th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a guardian of a disabled person appointed under the Guardians for Disabled Adults Article of the Probate Act of 1975 or a parent or guardian of a minor may request that a consumer reporting agency place a security freeze on the credit report of the disabled person or minor by sending a request to the consumer reporting agency.
Spectrum: Moderate Partisan Bill (Democrat 25-4)
Status: (Passed) 2013-08-16 - Public Act . . . . . . . . . 98-0486 [HB3380 Detail]
Download: Illinois-2013-HB3380-Introduced.html
Bill Title: Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a guardian of a disabled person appointed under the Guardians for Disabled Adults Article of the Probate Act of 1975 or a parent or guardian of a minor may request that a consumer reporting agency place a security freeze on the credit report of the disabled person or minor by sending a request to the consumer reporting agency.
Spectrum: Moderate Partisan Bill (Democrat 25-4)
Status: (Passed) 2013-08-16 - Public Act . . . . . . . . . 98-0486 [HB3380 Detail]
Download: Illinois-2013-HB3380-Introduced.html
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1 | AN ACT concerning business.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Consumer Fraud and Deceptive Business | |||||||||||||||||||
5 | Practices Act is amended by changing Section 2MM as follows:
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6 | (815 ILCS 505/2MM)
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7 | Sec. 2MM. Verification of accuracy of consumer reporting | |||||||||||||||||||
8 | information used to
extend consumers credit and security freeze | |||||||||||||||||||
9 | on credit reports. | |||||||||||||||||||
10 | (a) A credit card issuer who mails an offer or solicitation | |||||||||||||||||||
11 | to apply for a
credit card and who receives a completed | |||||||||||||||||||
12 | application in response to the offer
or
solicitation which | |||||||||||||||||||
13 | lists an address that is not substantially the same as the
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14 | address on the offer or solicitation may not issue a credit | |||||||||||||||||||
15 | card based on that
application until reasonable steps have been | |||||||||||||||||||
16 | taken to verify the applicant's
change of address.
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17 | (b) Any person who uses a consumer credit report in | |||||||||||||||||||
18 | connection with the
approval of credit based on the application | |||||||||||||||||||
19 | for an extension of credit, and who
has received notification | |||||||||||||||||||
20 | of a police report filed with a consumer reporting
agency that | |||||||||||||||||||
21 | the applicant has been a victim of financial
identity theft, as | |||||||||||||||||||
22 | defined in Section 16-30 or 16G-15 of the Criminal Code of 1961 | |||||||||||||||||||
23 | or the Criminal Code of 2012, may
not lend money or extend |
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1 | credit without taking reasonable steps to verify the
consumer's | ||||||
2 | identity and confirm that the application for an extension of
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3 | credit
is not the result of financial identity theft.
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4 | (c) A consumer may request that a security freeze be placed | ||||||
5 | on his or her credit report by sending a request in writing by | ||||||
6 | certified mail to a consumer reporting agency at an address | ||||||
7 | designated by the consumer reporting agency to receive such | ||||||
8 | requests. A guardian of a disabled person appointed under | ||||||
9 | Article XIa of the Probate Act of 1975 or a parent or guardian | ||||||
10 | of a minor may request that a consumer reporting agency place a | ||||||
11 | security freeze on the credit report of the disabled person or | ||||||
12 | minor by sending a request in writing by certified mail to the | ||||||
13 | consumer reporting agency at an address designated by the | ||||||
14 | consumer reporting agency to receive such requests. This | ||||||
15 | subsection (c) does not prevent a consumer reporting agency | ||||||
16 | from advising a third party that a security freeze is in effect | ||||||
17 | with respect to the consumer's credit report.
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18 | (d) A consumer reporting agency shall place a security | ||||||
19 | freeze on a consumer's credit report no later than 5 business | ||||||
20 | days after receiving a written request from the consumer:
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21 | (1) a written request described in subsection (c); | ||||||
22 | (2) proper identification; and | ||||||
23 | (3) payment of a fee, if applicable.
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24 | (e) Upon placing the security freeze on the consumer's | ||||||
25 | credit report, the consumer reporting agency shall send to the | ||||||
26 | consumer within 10 business days a written confirmation of the |
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1 | placement of the security freeze and a unique personal | ||||||
2 | identification number or password or similar device, other than | ||||||
3 | the consumer's Social Security number, to be used by the | ||||||
4 | consumer when providing authorization for the release of his or | ||||||
5 | her credit report for a specific party or period of time.
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6 | (f) If the consumer wishes to allow his or her credit | ||||||
7 | report to be accessed for a specific party or period of time | ||||||
8 | while a freeze is in place, he or she shall contact the | ||||||
9 | consumer reporting agency using a point of contact designated | ||||||
10 | by the consumer reporting agency, request that the freeze be | ||||||
11 | temporarily lifted, and provide the following:
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12 | (1) Proper identification;
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13 | (2) The unique personal identification number or | ||||||
14 | password or similar device provided by the consumer | ||||||
15 | reporting agency;
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16 | (3) The proper information regarding the third party or | ||||||
17 | time period for which the report shall be available to | ||||||
18 | users of the credit report; and
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19 | (4) A fee, if applicable.
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20 | (g) A consumer reporting agency shall develop a contact | ||||||
21 | method to receive and process a request from a consumer to | ||||||
22 | temporarily lift a freeze on a credit report pursuant to | ||||||
23 | subsection (f) in an expedited manner.
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24 | A contact method under this subsection shall include:
(i) a | ||||||
25 | postal address; and (ii) an electronic contact method chosen by | ||||||
26 | the consumer reporting agency, which may include the use of |
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1 | telephone, fax, Internet, or other electronic means.
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2 | (h) A consumer reporting agency that receives a request | ||||||
3 | from a consumer to temporarily lift a freeze on a credit report | ||||||
4 | pursuant to subsection (f), shall comply with the request no | ||||||
5 | later than 3 business days after receiving the request.
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6 | (i) A consumer reporting agency shall remove or temporarily | ||||||
7 | lift a freeze placed on a consumer's credit report only in the | ||||||
8 | following cases:
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9 | (1) upon consumer request, pursuant to subsection (f) | ||||||
10 | or subsection (l) of this Section; or
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11 | (2) if the consumer's credit report was frozen due to a | ||||||
12 | material misrepresentation of fact by the consumer.
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13 | If a consumer reporting agency intends to remove a freeze | ||||||
14 | upon a consumer's credit report pursuant to this subsection, | ||||||
15 | the consumer reporting agency shall notify the consumer in | ||||||
16 | writing prior to removing the freeze on the consumer's credit | ||||||
17 | report.
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18 | (j) If a third party requests access to a credit report on | ||||||
19 | which a security freeze is in effect, and this request is in | ||||||
20 | connection with an application for credit or any other use, and | ||||||
21 | the consumer does not allow his or her credit report to be | ||||||
22 | accessed for that specific party or period of time, the third | ||||||
23 | party may treat the application as incomplete.
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24 | (k) If a consumer requests a security freeze, the credit | ||||||
25 | reporting agency shall disclose to the consumer the process of | ||||||
26 | placing and temporarily lifting a security freeze, and the |
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1 | process for allowing access to information from the consumer's | ||||||
2 | credit report for a specific party or period of time while the | ||||||
3 | freeze is in place.
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4 | (l) A security freeze shall remain in place until the | ||||||
5 | consumer requests, using a point of contact designated by the | ||||||
6 | consumer reporting agency, that the security freeze be removed. | ||||||
7 | A credit reporting agency shall remove a security freeze within | ||||||
8 | 3 business days of receiving a request for removal from the | ||||||
9 | consumer, who provides:
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10 | (1) Proper identification;
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11 | (2) The unique personal identification number or | ||||||
12 | password or similar device provided by the consumer | ||||||
13 | reporting agency; and
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14 | (3) A fee, if applicable.
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15 | (m) A consumer reporting agency shall require proper | ||||||
16 | identification of the person making a request to place or | ||||||
17 | remove a security freeze.
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18 | (n) The provisions of subsections (c) through (m) of this | ||||||
19 | Section do not apply to the use of a consumer credit report by | ||||||
20 | any of the following:
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21 | (1) A person or entity, or a subsidiary, affiliate, or | ||||||
22 | agent of that person or entity, or an assignee of a | ||||||
23 | financial obligation owing by the consumer to that person | ||||||
24 | or entity, or a prospective assignee of a financial | ||||||
25 | obligation owing by the consumer to that person or entity | ||||||
26 | in conjunction with the proposed purchase of the financial |
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1 | obligation, with which the consumer has or had prior to | ||||||
2 | assignment an account or contract, including a demand | ||||||
3 | deposit account, or to whom the consumer issued a | ||||||
4 | negotiable instrument, for the purposes of reviewing the | ||||||
5 | account or collecting the financial obligation owing for | ||||||
6 | the account, contract, or negotiable instrument. For | ||||||
7 | purposes of this subsection, "reviewing the account" | ||||||
8 | includes activities related to account maintenance, | ||||||
9 | monitoring, credit line increases, and account upgrades | ||||||
10 | and enhancements.
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11 | (2) A subsidiary, affiliate, agent, assignee, or | ||||||
12 | prospective assignee of a person to whom access has been | ||||||
13 | granted under subsection (f) of this Section for purposes | ||||||
14 | of facilitating the extension of credit or other | ||||||
15 | permissible use.
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16 | (3) Any state or local agency, law enforcement agency, | ||||||
17 | trial court, or private collection agency acting pursuant | ||||||
18 | to a court order, warrant, or subpoena.
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19 | (4) A child support agency acting pursuant to Title | ||||||
20 | IV-D of the Social Security Act.
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21 | (5) The State or its agents or assigns acting to | ||||||
22 | investigate fraud.
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23 | (6) The Department of Revenue or its agents or assigns | ||||||
24 | acting to investigate or collect delinquent taxes or unpaid | ||||||
25 | court orders or to fulfill any of its other statutory | ||||||
26 | responsibilities.
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1 | (7) The use of credit information for the purposes of | ||||||
2 | prescreening as provided for by the federal Fair Credit | ||||||
3 | Reporting Act.
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4 | (8) Any person or entity administering a credit file | ||||||
5 | monitoring subscription or similar service to which the | ||||||
6 | consumer has subscribed.
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7 | (9) Any person or entity for the purpose of providing a | ||||||
8 | consumer with a copy of his or her credit report or score | ||||||
9 | upon the consumer's request.
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10 | (10) Any person using the information in connection | ||||||
11 | with the underwriting of insurance.
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12 | (n-5) This Section does not prevent a consumer reporting | ||||||
13 | agency from charging a fee of no more than $10 to a consumer | ||||||
14 | for each freeze, removal, or temporary lift of the freeze, | ||||||
15 | regarding access to a consumer credit report, except that a | ||||||
16 | consumer reporting agency may not charge a fee to (i) a | ||||||
17 | consumer 65 years of age or over for placement and removal of a | ||||||
18 | freeze, or (ii) a victim of identity theft who has submitted to | ||||||
19 | the consumer reporting agency a valid copy of a police report, | ||||||
20 | investigative report, or complaint that the consumer has filed | ||||||
21 | with a law enforcement agency about unlawful use of his or her | ||||||
22 | personal information by another person.
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23 | (o) If a security freeze is in place, a consumer reporting | ||||||
24 | agency shall not change any of the following official | ||||||
25 | information in a credit report without sending a written | ||||||
26 | confirmation of the change to the consumer within 30 days of |
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1 | the change being posted to the consumer's file: (i) name, (ii) | ||||||
2 | date of birth, (iii) Social Security number, and (iv) address. | ||||||
3 | Written confirmation is not required for technical | ||||||
4 | modifications of a consumer's official information, including | ||||||
5 | name and street abbreviations, complete spellings, or | ||||||
6 | transposition of numbers or letters. In the case of an address | ||||||
7 | change, the written confirmation shall be sent to both the new | ||||||
8 | address and to the former address.
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9 | (p) The following entities are not required to place a | ||||||
10 | security freeze in a consumer report, however, pursuant to | ||||||
11 | paragraph (3) of this subsection, a consumer reporting agency | ||||||
12 | acting as a reseller shall honor any security freeze placed on | ||||||
13 | a consumer credit report by another consumer reporting agency:
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14 | (1) A check services or fraud prevention services | ||||||
15 | company, which issues reports on incidents of fraud or | ||||||
16 | authorizations for the purpose of approving or processing | ||||||
17 | negotiable instruments, electronic funds transfers, or | ||||||
18 | similar methods of payment.
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19 | (2) A deposit account information service company, | ||||||
20 | which issues reports regarding account closures due to | ||||||
21 | fraud, substantial overdrafts, ATM abuse, or similar | ||||||
22 | negative information regarding a consumer to inquiring | ||||||
23 | banks or other financial institutions for use only in | ||||||
24 | reviewing a consumer request for a deposit account at the | ||||||
25 | inquiring bank or financial institution.
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26 | (3) A consumer reporting agency that:
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1 | (A) acts only to resell credit information by | ||||||
2 | assembling and merging information contained in a | ||||||
3 | database of one or more consumer reporting agencies; | ||||||
4 | and
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5 | (B) does not maintain a permanent database of | ||||||
6 | credit information from which new credit reports are | ||||||
7 | produced.
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8 | (q) For purposes of this Section: | ||||||
9 | "Credit report" has the same meaning as "consumer report", | ||||||
10 | as ascribed to it in 15 U.S.C. Sec. 1681a(d). | ||||||
11 | "Consumer reporting agency" has the meaning ascribed to it | ||||||
12 | in 15 U.S.C. Sec. 1681a(f). | ||||||
13 | "Security freeze" means
a notice placed in a consumer's | ||||||
14 | credit report, at the request of the consumer and subject to | ||||||
15 | certain exceptions, that prohibits the consumer reporting | ||||||
16 | agency from releasing the consumer's credit report or score | ||||||
17 | relating to an extension of credit, without the express | ||||||
18 | authorization of the consumer.
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19 | "Extension of credit" does not include
an increase in an | ||||||
20 | existing open-end credit plan, as defined in Regulation Z of
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21 | the Federal Reserve System (12 C.F.R. 226.2), or any change to | ||||||
22 | or review of an
existing credit account.
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23 | "Proper identification" means information generally deemed | ||||||
24 | sufficient to identify a person. Only if the consumer is unable | ||||||
25 | to reasonably identify himself or herself with the information | ||||||
26 | described above, may a consumer reporting agency require |
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1 | additional information concerning the consumer's employment | ||||||
2 | and personal or family history in order to verify his or her | ||||||
3 | identity.
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4 | (r) Any person who violates this Section commits an
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5 | unlawful practice within the meaning of this Act.
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6 | (Source: P.A. 97-597, eff. 1-1-12; 97-1150, eff. 1-25-13.)
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