Bill Text: IL HB3380 | 2013-2014 | 98th General Assembly | Enrolled
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-Enrolled.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-Enrolled.html
| |||||||
| |||||||
| |||||||
1 | AN ACT concerning business.
| ||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||
3 | represented in the General Assembly:
| ||||||
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.
| ||||||
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 |
| |||||||
| |||||||
1 | credit without taking reasonable steps to verify the
consumer's | ||||||
2 | identity and confirm that the application for an extension of
| ||||||
3 | credit
is not the result of financial identity theft.
| ||||||
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. | ||||||
9 | The following persons may request that a security freeze be | ||||||
10 | placed on the credit report of a disabled person: | ||||||
11 | (1) a guardian of the disabled person that is the | ||||||
12 | subject of the request, appointed under Article XIa of the | ||||||
13 | Probate Act of 1975; and | ||||||
14 | (2) an agent of the disabled person that is the subject | ||||||
15 | of the request, under a written durable power of attorney | ||||||
16 | that complies with Illinois Power of Attorney Act. | ||||||
17 | The following persons may request that a security freeze | ||||||
18 | be placed on the credit report of a minor: | ||||||
19 | (1) a guardian of the minor that is the subject of the | ||||||
20 | request, appointed under Article XI of the Probate Act of | ||||||
21 | 1975; | ||||||
22 | (2) a parent of the minor that is the subject of the | ||||||
23 | request; and | ||||||
24 | (3) a guardian appointed under the Juvenile Court Act | ||||||
25 | of 1987 for a minor under the age of 18 who is the subject | ||||||
26 | of the request or, with a court order authorizing the |
| |||||||
| |||||||
1 | guardian consent power, for a youth who is the subject of | ||||||
2 | the request who has attained the age of 18, but who is | ||||||
3 | under the age of 21. | ||||||
4 | This subsection (c) does not prevent a consumer reporting | ||||||
5 | agency from advising a third party that a security freeze is in | ||||||
6 | effect with respect to the consumer's credit report.
| ||||||
7 | (d) A consumer reporting agency shall place a security | ||||||
8 | freeze on a consumer's credit report no later than 5 business | ||||||
9 | days after receiving a written request from the consumer:
| ||||||
10 | (1) a written request described in subsection (c); | ||||||
11 | (2) proper identification; and | ||||||
12 | (3) payment of a fee, if applicable.
| ||||||
13 | (e) Upon placing the security freeze on the consumer's | ||||||
14 | credit report, the consumer reporting agency shall send to the | ||||||
15 | consumer within 10 business days a written confirmation of the | ||||||
16 | placement of the security freeze and a unique personal | ||||||
17 | identification number or password or similar device, other than | ||||||
18 | the consumer's Social Security number, to be used by the | ||||||
19 | consumer when providing authorization for the release of his or | ||||||
20 | her credit report for a specific party or period of time.
| ||||||
21 | (f) If the consumer wishes to allow his or her credit | ||||||
22 | report to be accessed for a specific party or period of time | ||||||
23 | while a freeze is in place, he or she shall contact the | ||||||
24 | consumer reporting agency using a point of contact designated | ||||||
25 | by the consumer reporting agency, request that the freeze be | ||||||
26 | temporarily lifted, and provide the following:
|
| |||||||
| |||||||
1 | (1) Proper identification;
| ||||||
2 | (2) The unique personal identification number or | ||||||
3 | password or similar device provided by the consumer | ||||||
4 | reporting agency;
| ||||||
5 | (3) The proper information regarding the third party or | ||||||
6 | time period for which the report shall be available to | ||||||
7 | users of the credit report; and
| ||||||
8 | (4) A fee, if applicable.
| ||||||
9 | A security freeze for a minor may not be temporarily | ||||||
10 | lifted. This Section does not require a consumer reporting | ||||||
11 | agency to provide to a minor or a parent or guardian of a minor | ||||||
12 | on behalf of the minor a unique personal identification number, | ||||||
13 | password, or similar device provided by the consumer reporting | ||||||
14 | agency for the minor, or parent or guardian of the minor, to | ||||||
15 | use to authorize the consumer reporting agency to release | ||||||
16 | information from a minor. | ||||||
17 | (g) A consumer reporting agency shall develop a contact | ||||||
18 | method to receive and process a request from a consumer to | ||||||
19 | temporarily lift a freeze on a credit report pursuant to | ||||||
20 | subsection (f) in an expedited manner.
| ||||||
21 | A contact method under this subsection shall include:
(i) a | ||||||
22 | postal address; and (ii) an electronic contact method chosen by | ||||||
23 | the consumer reporting agency, which may include the use of | ||||||
24 | telephone, fax, Internet, or other electronic means.
| ||||||
25 | (h) A consumer reporting agency that receives a request | ||||||
26 | from a consumer to temporarily lift a freeze on a credit report |
| |||||||
| |||||||
1 | pursuant to subsection (f), shall comply with the request no | ||||||
2 | later than 3 business days after receiving the request.
| ||||||
3 | (i) A consumer reporting agency shall remove or temporarily | ||||||
4 | lift a freeze placed on a consumer's credit report only in the | ||||||
5 | following cases:
| ||||||
6 | (1) upon consumer request, pursuant to subsection (f) | ||||||
7 | or subsection (l) of this Section; or
| ||||||
8 | (2) if the consumer's credit report was frozen due to a | ||||||
9 | material misrepresentation of fact by the consumer.
| ||||||
10 | If a consumer reporting agency intends to remove a freeze | ||||||
11 | upon a consumer's credit report pursuant to this subsection, | ||||||
12 | the consumer reporting agency shall notify the consumer in | ||||||
13 | writing prior to removing the freeze on the consumer's credit | ||||||
14 | report.
| ||||||
15 | (j) If a third party requests access to a credit report on | ||||||
16 | which a security freeze is in effect, and this request is in | ||||||
17 | connection with an application for credit or any other use, and | ||||||
18 | the consumer does not allow his or her credit report to be | ||||||
19 | accessed for that specific party or period of time, the third | ||||||
20 | party may treat the application as incomplete.
| ||||||
21 | (k) If a consumer requests a security freeze, the credit | ||||||
22 | reporting agency shall disclose to the consumer the process of | ||||||
23 | placing and temporarily lifting a security freeze, and the | ||||||
24 | process for allowing access to information from the consumer's | ||||||
25 | credit report for a specific party or period of time while the | ||||||
26 | freeze is in place.
|
| |||||||
| |||||||
1 | (l) A security freeze shall remain in place until the | ||||||
2 | consumer or person authorized under subsection (c) to act on | ||||||
3 | behalf of the minor or disabled person that is the subject of | ||||||
4 | the security freeze requests, using a point of contact | ||||||
5 | designated by the consumer reporting agency, that the security | ||||||
6 | freeze be removed. A credit reporting agency shall remove a | ||||||
7 | security freeze within 3 business days of receiving a request | ||||||
8 | for removal from the consumer, who provides:
| ||||||
9 | (1) Proper identification;
| ||||||
10 | (2) The unique personal identification number or | ||||||
11 | password or similar device provided by the consumer | ||||||
12 | reporting agency; and
| ||||||
13 | (3) A fee, if applicable.
| ||||||
14 | (m) A consumer reporting agency shall require proper | ||||||
15 | identification of the person making a request to place or | ||||||
16 | remove a security freeze and may require proper identification | ||||||
17 | and proper authority from the person making the request to | ||||||
18 | place or remove a freeze on behalf of the disabled person or | ||||||
19 | minor .
| ||||||
20 | (n) The provisions of subsections (c) through (m) of this | ||||||
21 | Section do not apply to the use of a consumer credit report by | ||||||
22 | any of the following:
| ||||||
23 | (1) A person or entity, or a subsidiary, affiliate, or | ||||||
24 | agent of that person or entity, or an assignee of a | ||||||
25 | financial obligation owing by the consumer to that person | ||||||
26 | or entity, or a prospective assignee of a financial |
| |||||||
| |||||||
1 | obligation owing by the consumer to that person or entity | ||||||
2 | in conjunction with the proposed purchase of the financial | ||||||
3 | obligation, with which the consumer has or had prior to | ||||||
4 | assignment an account or contract, including a demand | ||||||
5 | deposit account, or to whom the consumer issued a | ||||||
6 | negotiable instrument, for the purposes of reviewing the | ||||||
7 | account or collecting the financial obligation owing for | ||||||
8 | the account, contract, or negotiable instrument. For | ||||||
9 | purposes of this subsection, "reviewing the account" | ||||||
10 | includes activities related to account maintenance, | ||||||
11 | monitoring, credit line increases, and account upgrades | ||||||
12 | and enhancements.
| ||||||
13 | (2) A subsidiary, affiliate, agent, assignee, or | ||||||
14 | prospective assignee of a person to whom access has been | ||||||
15 | granted under subsection (f) of this Section for purposes | ||||||
16 | of facilitating the extension of credit or other | ||||||
17 | permissible use.
| ||||||
18 | (3) Any state or local agency, law enforcement agency, | ||||||
19 | trial court, or private collection agency acting pursuant | ||||||
20 | to a court order, warrant, or subpoena.
| ||||||
21 | (4) A child support agency acting pursuant to Title | ||||||
22 | IV-D of the Social Security Act.
| ||||||
23 | (5) The State or its agents or assigns acting to | ||||||
24 | investigate fraud.
| ||||||
25 | (6) The Department of Revenue or its agents or assigns | ||||||
26 | acting to investigate or collect delinquent taxes or unpaid |
| |||||||
| |||||||
1 | court orders or to fulfill any of its other statutory | ||||||
2 | responsibilities.
| ||||||
3 | (7) The use of credit information for the purposes of | ||||||
4 | prescreening as provided for by the federal Fair Credit | ||||||
5 | Reporting Act.
| ||||||
6 | (8) Any person or entity administering a credit file | ||||||
7 | monitoring subscription or similar service to which the | ||||||
8 | consumer has subscribed.
| ||||||
9 | (9) Any person or entity for the purpose of providing a | ||||||
10 | consumer with a copy of his or her credit report or score | ||||||
11 | upon the consumer's request.
| ||||||
12 | (10) Any person using the information in connection | ||||||
13 | with the underwriting of insurance.
| ||||||
14 | (n-5) This Section does not prevent a consumer reporting | ||||||
15 | agency from charging a fee of no more than $10 to a consumer | ||||||
16 | for each freeze, removal, or temporary lift of the freeze, | ||||||
17 | regarding access to a consumer credit report, except that a | ||||||
18 | consumer reporting agency may not charge a fee to (i) a | ||||||
19 | consumer 65 years of age or over for placement and removal of a | ||||||
20 | freeze, or (ii) a victim of identity theft who has submitted to | ||||||
21 | the consumer reporting agency a valid copy of a police report, | ||||||
22 | investigative report, or complaint that the consumer has filed | ||||||
23 | with a law enforcement agency about unlawful use of his or her | ||||||
24 | personal information by another person.
| ||||||
25 | (o) If a security freeze is in place, a consumer reporting | ||||||
26 | agency shall not change any of the following official |
| |||||||
| |||||||
1 | information in a credit report without sending a written | ||||||
2 | confirmation of the change to the consumer within 30 days of | ||||||
3 | the change being posted to the consumer's file: (i) name, (ii) | ||||||
4 | date of birth, (iii) Social Security number, and (iv) address. | ||||||
5 | Written confirmation is not required for technical | ||||||
6 | modifications of a consumer's official information, including | ||||||
7 | name and street abbreviations, complete spellings, or | ||||||
8 | transposition of numbers or letters. In the case of an address | ||||||
9 | change, the written confirmation shall be sent to both the new | ||||||
10 | address and to the former address.
| ||||||
11 | (p) The following entities are not required to place a | ||||||
12 | security freeze in a consumer report, however, pursuant to | ||||||
13 | paragraph (3) of this subsection, a consumer reporting agency | ||||||
14 | acting as a reseller shall honor any security freeze placed on | ||||||
15 | a consumer credit report by another consumer reporting agency:
| ||||||
16 | (1) A check services or fraud prevention services | ||||||
17 | company, which issues reports on incidents of fraud or | ||||||
18 | authorizations for the purpose of approving or processing | ||||||
19 | negotiable instruments, electronic funds transfers, or | ||||||
20 | similar methods of payment.
| ||||||
21 | (2) A deposit account information service company, | ||||||
22 | which issues reports regarding account closures due to | ||||||
23 | fraud, substantial overdrafts, ATM abuse, or similar | ||||||
24 | negative information regarding a consumer to inquiring | ||||||
25 | banks or other financial institutions for use only in | ||||||
26 | reviewing a consumer request for a deposit account at the |
| |||||||
| |||||||
1 | inquiring bank or financial institution.
| ||||||
2 | (3) A consumer reporting agency that:
| ||||||
3 | (A) acts only to resell credit information by | ||||||
4 | assembling and merging information contained in a | ||||||
5 | database of one or more consumer reporting agencies; | ||||||
6 | and
| ||||||
7 | (B) does not maintain a permanent database of | ||||||
8 | credit information from which new credit reports are | ||||||
9 | produced.
| ||||||
10 | (q) For purposes of this Section: | ||||||
11 | "Credit report" has the same meaning as "consumer report", | ||||||
12 | as ascribed to it in 15 U.S.C. Sec. 1681a(d). | ||||||
13 | "Consumer reporting agency" has the meaning ascribed to it | ||||||
14 | in 15 U.S.C. Sec. 1681a(f). | ||||||
15 | "Security freeze" means
a notice placed in a consumer's | ||||||
16 | credit report, at the request of the consumer and subject to | ||||||
17 | certain exceptions, that prohibits the consumer reporting | ||||||
18 | agency from releasing the consumer's credit report or score | ||||||
19 | relating to an extension of credit, without the express | ||||||
20 | authorization of the consumer.
| ||||||
21 | "Extension of credit" does not include
an increase in an | ||||||
22 | existing open-end credit plan, as defined in Regulation Z of
| ||||||
23 | the Federal Reserve System (12 C.F.R. 226.2), or any change to | ||||||
24 | or review of an
existing credit account.
| ||||||
25 | "Proper authority" means documentation that shows that a | ||||||
26 | parent, guardian, or agent has authority to act on behalf of a |
| |||||||
| |||||||
1 | minor or disabled person. "Proper authority" includes (1) an | ||||||
2 | order issued by a court of law that shows that a guardian has | ||||||
3 | authority to act on behalf of a minor or disabled person, (2) a | ||||||
4 | written, notarized statement signed by a parent that expressly | ||||||
5 | describes the authority of the parent to act on behalf of the | ||||||
6 | minor, or (3) a durable power of attorney that complies with | ||||||
7 | the Illinois Power of Attorney Act. | ||||||
8 | "Proper identification" means information generally deemed | ||||||
9 | sufficient to identify a person. Only if the consumer is unable | ||||||
10 | to reasonably identify himself or herself with the information | ||||||
11 | described above, may a consumer reporting agency require | ||||||
12 | additional information concerning the consumer's employment | ||||||
13 | and personal or family history in order to verify his or her | ||||||
14 | identity.
| ||||||
15 | (r) Any person who violates this Section commits an
| ||||||
16 | unlawful practice within the meaning of this Act.
| ||||||
17 | (Source: P.A. 97-597, eff. 1-1-12; 97-1150, eff. 1-25-13.)
|