Bill Text: IL HB3380 | 2013-2014 | 98th General Assembly | Amended
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-Amended.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-Amended.html
| |||||||
| |||||||
| |||||||
1 | AMENDMENT TO HOUSE BILL 3380
| ||||||
2 | AMENDMENT NO. ______. Amend House Bill 3380 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 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
| ||||||
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.
|
| |||||||
| |||||||
1 | (b) Any person who uses a consumer credit report in | ||||||
2 | connection with the
approval of credit based on the application | ||||||
3 | for an extension of credit, and who
has received notification | ||||||
4 | of a police report filed with a consumer reporting
agency that | ||||||
5 | the applicant has been a victim of financial
identity theft, as | ||||||
6 | defined in Section 16-30 or 16G-15 of the Criminal Code of 1961 | ||||||
7 | or the Criminal Code of 2012, may
not lend money or extend | ||||||
8 | credit without taking reasonable steps to verify the
consumer's | ||||||
9 | identity and confirm that the application for an extension of
| ||||||
10 | credit
is not the result of financial identity theft.
| ||||||
11 | (c) A consumer may request that a security freeze be placed | ||||||
12 | on his or her credit report by sending a request in writing by | ||||||
13 | certified mail to a consumer reporting agency at an address | ||||||
14 | designated by the consumer reporting agency to receive such | ||||||
15 | requests. | ||||||
16 | The following persons may request that a security freeze be | ||||||
17 | placed on the credit report of a disabled person: | ||||||
18 | (1) a guardian appointed under Article XIa of the | ||||||
19 | Probate Act of 1975; and | ||||||
20 | (2) an agent under a written durable power of attorney | ||||||
21 | that complies with Illinois Power of Attorney Act. | ||||||
22 | The following persons may request that a security freeze | ||||||
23 | be placed on the credit report of a minor: | ||||||
24 | (1) a guardian appointed under Article XI of the | ||||||
25 | Probate Act of 1975; and | ||||||
26 | (2) a parent. |
| |||||||
| |||||||
1 | This subsection (c) does not prevent a consumer reporting | ||||||
2 | agency from advising a third party that a security freeze is in | ||||||
3 | effect with respect to the consumer's credit report.
| ||||||
4 | (d) A consumer reporting agency shall place a security | ||||||
5 | freeze on a consumer's credit report no later than 5 business | ||||||
6 | days after receiving a written request from the consumer:
| ||||||
7 | (1) a written request described in subsection (c); | ||||||
8 | (2) proper identification; and | ||||||
9 | (3) payment of a fee, if applicable.
| ||||||
10 | (e) Upon placing the security freeze on the consumer's | ||||||
11 | credit report, the consumer reporting agency shall send to the | ||||||
12 | consumer within 10 business days a written confirmation of the | ||||||
13 | placement of the security freeze and a unique personal | ||||||
14 | identification number or password or similar device, other than | ||||||
15 | the consumer's Social Security number, to be used by the | ||||||
16 | consumer when providing authorization for the release of his or | ||||||
17 | her credit report for a specific party or period of time.
| ||||||
18 | (f) If the consumer wishes to allow his or her credit | ||||||
19 | report to be accessed for a specific party or period of time | ||||||
20 | while a freeze is in place, he or she shall contact the | ||||||
21 | consumer reporting agency using a point of contact designated | ||||||
22 | by the consumer reporting agency, request that the freeze be | ||||||
23 | temporarily lifted, and provide the following:
| ||||||
24 | (1) Proper identification;
| ||||||
25 | (2) The unique personal identification number or | ||||||
26 | password or similar device provided by the consumer |
| |||||||
| |||||||
1 | reporting agency;
| ||||||
2 | (3) The proper information regarding the third party or | ||||||
3 | time period for which the report shall be available to | ||||||
4 | users of the credit report; and
| ||||||
5 | (4) A fee, if applicable.
| ||||||
6 | A security freeze for a minor may not be temporarily | ||||||
7 | lifted. This Section does not require a consumer reporting | ||||||
8 | agency to provide to a minor or a parent or guardian of a minor | ||||||
9 | on behalf of the minor a unique personal identification number, | ||||||
10 | password, or similar device provided by the consumer reporting | ||||||
11 | agency for the minor, or parent or guardian of the minor, to | ||||||
12 | use to authorize the consumer reporting agency to release | ||||||
13 | information from a minor. | ||||||
14 | (g) A consumer reporting agency shall develop a contact | ||||||
15 | method to receive and process a request from a consumer to | ||||||
16 | temporarily lift a freeze on a credit report pursuant to | ||||||
17 | subsection (f) in an expedited manner.
| ||||||
18 | A contact method under this subsection shall include:
(i) a | ||||||
19 | postal address; and (ii) an electronic contact method chosen by | ||||||
20 | the consumer reporting agency, which may include the use of | ||||||
21 | telephone, fax, Internet, or other electronic means.
| ||||||
22 | (h) A consumer reporting agency that receives a request | ||||||
23 | from a consumer to temporarily lift a freeze on a credit report | ||||||
24 | pursuant to subsection (f), shall comply with the request no | ||||||
25 | later than 3 business days after receiving the request.
| ||||||
26 | (i) A consumer reporting agency shall remove or temporarily |
| |||||||
| |||||||
1 | lift a freeze placed on a consumer's credit report only in the | ||||||
2 | following cases:
| ||||||
3 | (1) upon consumer request, pursuant to subsection (f) | ||||||
4 | or subsection (l) of this Section; or
| ||||||
5 | (2) if the consumer's credit report was frozen due to a | ||||||
6 | material misrepresentation of fact by the consumer.
| ||||||
7 | If a consumer reporting agency intends to remove a freeze | ||||||
8 | upon a consumer's credit report pursuant to this subsection, | ||||||
9 | the consumer reporting agency shall notify the consumer in | ||||||
10 | writing prior to removing the freeze on the consumer's credit | ||||||
11 | report.
| ||||||
12 | (j) If a third party requests access to a credit report on | ||||||
13 | which a security freeze is in effect, and this request is in | ||||||
14 | connection with an application for credit or any other use, and | ||||||
15 | the consumer does not allow his or her credit report to be | ||||||
16 | accessed for that specific party or period of time, the third | ||||||
17 | party may treat the application as incomplete.
| ||||||
18 | (k) If a consumer requests a security freeze, the credit | ||||||
19 | reporting agency shall disclose to the consumer the process of | ||||||
20 | placing and temporarily lifting a security freeze, and the | ||||||
21 | process for allowing access to information from the consumer's | ||||||
22 | credit report for a specific party or period of time while the | ||||||
23 | freeze is in place.
| ||||||
24 | (l) A security freeze shall remain in place until the | ||||||
25 | consumer or person authorized under subsection (c) to act on | ||||||
26 | behalf of a minor or disabled person requests, using a point of |
| |||||||
| |||||||
1 | contact designated by the consumer reporting agency, that the | ||||||
2 | security freeze be removed. A credit reporting agency shall | ||||||
3 | remove a security freeze within 3 business days of receiving a | ||||||
4 | request for removal from the consumer, who provides:
| ||||||
5 | (1) Proper identification;
| ||||||
6 | (2) The unique personal identification number or | ||||||
7 | password or similar device provided by the consumer | ||||||
8 | reporting agency; and
| ||||||
9 | (3) A fee, if applicable.
| ||||||
10 | (m) A consumer reporting agency shall require proper | ||||||
11 | identification of the person making a request to place or | ||||||
12 | remove a security freeze and may require proper identification | ||||||
13 | and proper authority from the person making the request to | ||||||
14 | place or remove a freeze on behalf of the disabled person or | ||||||
15 | minor .
| ||||||
16 | (n) The provisions of subsections (c) through (m) of this | ||||||
17 | Section do not apply to the use of a consumer credit report by | ||||||
18 | any of the following:
| ||||||
19 | (1) A person or entity, or a subsidiary, affiliate, or | ||||||
20 | agent of that person or entity, or an assignee of a | ||||||
21 | financial obligation owing by the consumer to that person | ||||||
22 | or entity, or a prospective assignee of a financial | ||||||
23 | obligation owing by the consumer to that person or entity | ||||||
24 | in conjunction with the proposed purchase of the financial | ||||||
25 | obligation, with which the consumer has or had prior to | ||||||
26 | assignment an account or contract, including a demand |
| |||||||
| |||||||
1 | deposit account, or to whom the consumer issued a | ||||||
2 | negotiable instrument, for the purposes of reviewing the | ||||||
3 | account or collecting the financial obligation owing for | ||||||
4 | the account, contract, or negotiable instrument. For | ||||||
5 | purposes of this subsection, "reviewing the account" | ||||||
6 | includes activities related to account maintenance, | ||||||
7 | monitoring, credit line increases, and account upgrades | ||||||
8 | and enhancements.
| ||||||
9 | (2) A subsidiary, affiliate, agent, assignee, or | ||||||
10 | prospective assignee of a person to whom access has been | ||||||
11 | granted under subsection (f) of this Section for purposes | ||||||
12 | of facilitating the extension of credit or other | ||||||
13 | permissible use.
| ||||||
14 | (3) Any state or local agency, law enforcement agency, | ||||||
15 | trial court, or private collection agency acting pursuant | ||||||
16 | to a court order, warrant, or subpoena.
| ||||||
17 | (4) A child support agency acting pursuant to Title | ||||||
18 | IV-D of the Social Security Act.
| ||||||
19 | (5) The State or its agents or assigns acting to | ||||||
20 | investigate fraud.
| ||||||
21 | (6) The Department of Revenue or its agents or assigns | ||||||
22 | acting to investigate or collect delinquent taxes or unpaid | ||||||
23 | court orders or to fulfill any of its other statutory | ||||||
24 | responsibilities.
| ||||||
25 | (7) The use of credit information for the purposes of | ||||||
26 | prescreening as provided for by the federal Fair Credit |
| |||||||
| |||||||
1 | Reporting Act.
| ||||||
2 | (8) Any person or entity administering a credit file | ||||||
3 | monitoring subscription or similar service to which the | ||||||
4 | consumer has subscribed.
| ||||||
5 | (9) Any person or entity for the purpose of providing a | ||||||
6 | consumer with a copy of his or her credit report or score | ||||||
7 | upon the consumer's request.
| ||||||
8 | (10) Any person using the information in connection | ||||||
9 | with the underwriting of insurance.
| ||||||
10 | (n-5) This Section does not prevent a consumer reporting | ||||||
11 | agency from charging a fee of no more than $10 to a consumer | ||||||
12 | for each freeze, removal, or temporary lift of the freeze, | ||||||
13 | regarding access to a consumer credit report, except that a | ||||||
14 | consumer reporting agency may not charge a fee to (i) a | ||||||
15 | consumer 65 years of age or over for placement and removal of a | ||||||
16 | freeze, or (ii) a victim of identity theft who has submitted to | ||||||
17 | the consumer reporting agency a valid copy of a police report, | ||||||
18 | investigative report, or complaint that the consumer has filed | ||||||
19 | with a law enforcement agency about unlawful use of his or her | ||||||
20 | personal information by another person.
| ||||||
21 | (o) If a security freeze is in place, a consumer reporting | ||||||
22 | agency shall not change any of the following official | ||||||
23 | information in a credit report without sending a written | ||||||
24 | confirmation of the change to the consumer within 30 days of | ||||||
25 | the change being posted to the consumer's file: (i) name, (ii) | ||||||
26 | date of birth, (iii) Social Security number, and (iv) address. |
| |||||||
| |||||||
1 | Written confirmation is not required for technical | ||||||
2 | modifications of a consumer's official information, including | ||||||
3 | name and street abbreviations, complete spellings, or | ||||||
4 | transposition of numbers or letters. In the case of an address | ||||||
5 | change, the written confirmation shall be sent to both the new | ||||||
6 | address and to the former address.
| ||||||
7 | (p) The following entities are not required to place a | ||||||
8 | security freeze in a consumer report, however, pursuant to | ||||||
9 | paragraph (3) of this subsection, a consumer reporting agency | ||||||
10 | acting as a reseller shall honor any security freeze placed on | ||||||
11 | a consumer credit report by another consumer reporting agency:
| ||||||
12 | (1) A check services or fraud prevention services | ||||||
13 | company, which issues reports on incidents of fraud or | ||||||
14 | authorizations for the purpose of approving or processing | ||||||
15 | negotiable instruments, electronic funds transfers, or | ||||||
16 | similar methods of payment.
| ||||||
17 | (2) A deposit account information service company, | ||||||
18 | which issues reports regarding account closures due to | ||||||
19 | fraud, substantial overdrafts, ATM abuse, or similar | ||||||
20 | negative information regarding a consumer to inquiring | ||||||
21 | banks or other financial institutions for use only in | ||||||
22 | reviewing a consumer request for a deposit account at the | ||||||
23 | inquiring bank or financial institution.
| ||||||
24 | (3) A consumer reporting agency that:
| ||||||
25 | (A) acts only to resell credit information by | ||||||
26 | assembling and merging information contained in a |
| |||||||
| |||||||
1 | database of one or more consumer reporting agencies; | ||||||
2 | and
| ||||||
3 | (B) does not maintain a permanent database of | ||||||
4 | credit information from which new credit reports are | ||||||
5 | produced.
| ||||||
6 | (q) For purposes of this Section: | ||||||
7 | "Credit report" has the same meaning as "consumer report", | ||||||
8 | as ascribed to it in 15 U.S.C. Sec. 1681a(d). | ||||||
9 | "Consumer reporting agency" has the meaning ascribed to it | ||||||
10 | in 15 U.S.C. Sec. 1681a(f). | ||||||
11 | "Security freeze" means
a notice placed in a consumer's | ||||||
12 | credit report, at the request of the consumer and subject to | ||||||
13 | certain exceptions, that prohibits the consumer reporting | ||||||
14 | agency from releasing the consumer's credit report or score | ||||||
15 | relating to an extension of credit, without the express | ||||||
16 | authorization of the consumer.
| ||||||
17 | "Extension of credit" does not include
an increase in an | ||||||
18 | existing open-end credit plan, as defined in Regulation Z of
| ||||||
19 | the Federal Reserve System (12 C.F.R. 226.2), or any change to | ||||||
20 | or review of an
existing credit account.
| ||||||
21 | "Proper authority" means documentation that shows that a | ||||||
22 | parent or guardian has authority to act on behalf of a minor or | ||||||
23 | disabled person. "Proper authority" includes (1) an order | ||||||
24 | issued by a court of law that shows that a guardian has | ||||||
25 | authority to act on behalf of a minor or disabled person, (2) a | ||||||
26 | written, notarized statement signed by a parent that expressly |
| |||||||
| |||||||
1 | describes the authority of the parent to act on behalf of the | ||||||
2 | minor, or (3) a power of attorney that complies with the | ||||||
3 | Illinois Power of Attorney Act. | ||||||
4 | "Proper identification" means information generally deemed | ||||||
5 | sufficient to identify a person. Only if the consumer is unable | ||||||
6 | to reasonably identify himself or herself with the information | ||||||
7 | described above, may a consumer reporting agency require | ||||||
8 | additional information concerning the consumer's employment | ||||||
9 | and personal or family history in order to verify his or her | ||||||
10 | identity.
| ||||||
11 | (r) Any person who violates this Section commits an
| ||||||
12 | unlawful practice within the meaning of this Act.
| ||||||
13 | (Source: P.A. 97-597, eff. 1-1-12; 97-1150, eff. 1-25-13.)".
|