Bill Text: MS SB2080 | 2016 | Regular Session | Introduced
Bill Title: Credit freeze; revise obligations of consumer reporting agencies and revise fees.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2016-02-23 - Died In Committee [SB2080 Detail]
Download: Mississippi-2016-SB2080-Introduced.html
MISSISSIPPI LEGISLATURE
2016 Regular Session
To: Business and Financial Institutions
By: Senator(s) Hopson
Senate Bill 2080
AN ACT TO AMEND SECTIONS 75-24-201 AND 75-24-207, MISSISSIPPI CODE OF 1972, TO REVISE THE METHOD BY WHICH A CONSUMER MAY REQUEST A SECURITY FREEZE TO BE PLACED ON HIS CONSUMER FILE; TO REVISE THE REQUIRED TIMING OF THE PLACEMENT, REMOVAL OR TEMPORARY LIFTING OF THE SECURITY FREEZE; TO REVISE THE FEES WHICH MAY BE CHARGED BY CONSUMER REPORTING AGENCIES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 75-24-201, Mississippi Code of 1972, is amended as follows:
75-24-201. (1) A consumer may place a security freeze
on the consumer's credit report by making a request to a consumer reporting
agency in accordance with this subsection. A security freeze shall prohibit,
subject to exceptions in Sections 75-24-209 and 75-24-211, the consumer
reporting agency from releasing the consumer's credit report or any information
from it without the express authorization of the consumer. When a security
freeze is in place, a consumer reporting agency may not release the consumer's
credit report or information to a third party without prior express
authorization from the consumer. This subsection does not prevent a consumer
reporting agency from advising a third party that a security freeze is in
effect with respect to the consumer's credit report, provided that the consumer
reporting agency does not state or otherwise imply to the third party that the
consumer's security freeze reflects a negative credit score, history, report or
rating. * * * A consumer reporting agency
shall place a security freeze on a consumer's consumer file * * * if the consumer requests a security freeze by any of the
following methods:
(a) First-class mail;
(b) Telephone call; or
(c) Secure website or secure electronic mail connection.
(2) * * * A nationwide consumer reporting agency, as defined in Section
603(p) [15 USC 1681a(p)] of the federal Fair Credit Reporting Act, 15 USC 1681
et seq., that receives a request from a consumer residing in this state to
place a security freeze on the consumer's file, shall provide a notice
communicating to the consumer that the freeze is only placed with the consumer
reporting agency to which the consumer directed the request. The notice shall
provide to the consumer the website, postal address and telephone number of the
other nationwide consumer reporting agencies and of the Mississippi Attorney
General's Office and shall inform the consumer that he or she may use this
information to contact other nationwide consumer reporting agencies to make
security freeze requests and obtain information on combating identity theft.
No part of the notice to the consumer shall be used to make a solicitation for
other goods and services.
(3) A consumer reporting
agency shall * * * place
a security freeze on a consumer's credit report no later than three (3)
business days after receiving a written request from the consumer by mail. A
consumer reporting agency that receives such a request electronically or by
telephone shall comply with the request within twenty-four (24) hours of
receiving the request.
(4) The consumer reporting agency shall within three (3) business days of placing the security freeze:
(a) Send a written confirmation of the security freeze to the consumer; and
(b) Provide the consumer with a unique personal identification number or password, other than the consumer's social security number, to be used by the consumer to authorize a removal or temporary lifting of the security freeze under Section 75-24-207.
( * * *5) A consumer may request in writing a
replacement personal identification number or password. The request must
comply with the requirements for requesting a security freeze under subsection
(1). The consumer reporting agency shall, not later than the third business
day after the date the agency receives the request for a replacement personal
identification number or password, provide the consumer with a new unique
personal identification number or password to be used by the consumer instead
of the number or password that was provided under subsection ( * * *4).
( * * *6) As used in Sections 75-24-201
through 75-24-217, the term "security freeze" means a notice that (a)
prohibits a consumer reporting agency from releasing all or any part of a
consumer report or any information derived from a consumer report relating to
the extension of credit, and (b) is placed in the file retained by the consumer
reporting agency on that consumer at the consumer's request pursuant to
subsection (1).
SECTION 2. Section 75-24-207, Mississippi Code of 1972, is amended as follows:
75-24-207. (1) * * * If the consumer wishes to
allow the consumer's credit report to be accessed for a specific period of time
or by a specific party while a freeze is in place, the consumer shall contact
the consumer reporting agency by mail, phone or electronically, and request
that the freeze be lifted or lifted with respect to a specific party, and
provide all of the following:
(a) Proper identification;
(b) The unique personal identification number or password provided by the consumer reporting agency pursuant to Section 75-24-201(4); and
(c) The proper information regarding the third party who is authorized to receive the consumer credit report or the time period for which the report shall be available to users of the credit report.
(2) * * *
A consumer reporting
agency that receives a request by mail from a consumer to lift a freeze on a
credit report pursuant to subsection (1) of this section shall comply with the
request no later than three (3) business days after receiving the request. A
consumer reporting agency that receives such a request electronically or by
telephone shall comply with the request within fifteen (15) minutes of
receiving the request.
(3) A consumer reporting agency shall remove, temporarily lift, or lift with respect to a specific third party a freeze placed on a consumer's credit report only in the following cases:
(a) Upon the consumer's request, pursuant to subsection (1) or (7) of this section.
(b) If the consumer's credit report was frozen due to a material misrepresentation of fact by the consumer. If a consumer reporting agency intends to remove a freeze upon a consumer's credit report pursuant to this subdivision, the consumer reporting agency shall notify the consumer in writing prior to removing the freeze on the consumer's credit report.
(4) A consumer reporting agency need not meet the time requirements provided in this section, only for such time as the occurrences prevent compliance, if any of the following occurrences apply:
(a) The consumer fails to meet the requirements of subsection (1) or (7) of this section.
(b) The consumer reporting agency's ability to remove, place, temporarily lift, or lift with respect to a specific party the security freeze is prevented by any of the following:
(i) An act of God, including fire, earthquakes, hurricanes, storms, or similar natural disaster or phenomena.
(ii) Unauthorized or illegal acts by a third party, including terrorism, sabotage, riot, vandalism, labor strikes or disputes disrupting operations, or similar occurrences.
(iii) Operational interruption, including electrical failure, unanticipated delay in equipment or replacement part delivery, computer hardware or software failures inhibiting response time, or similar disruption.
(iv) Governmental action, including emergency orders or regulations, judicial or law enforcement action, or similar directives.
(v) Regularly scheduled maintenance, during other than normal business hours, of, or updates to, the consumer reporting agency's systems.
(vi) Commercially reasonable maintenance of, or repair to, the consumer reporting agency's systems that is unexpected or unscheduled.
(vii) Receipt of a request outside of normal business hours.
(5) If a third party requests access to a consumer credit report on which a security freeze is in effect and this request is in connection with an application for credit or any other use and the consumer does not allow the consumer's credit report to be accessed for that specific period of time, the third party may treat the application as incomplete.
(6) If a consumer requests a security freeze pursuant to this section, the consumer reporting agency shall disclose to the consumer the process of placing and temporarily lifting a security freeze and the process for allowing access to information from the consumer's credit report for a specific period of time or to a specific third party while the security freeze is in place.
(7) A security freeze shall remain in place until the consumer requests that the security freeze be temporarily lifted for a specific period of time or to a specific third party or removed. A consumer reporting agency shall remove a security freeze within fifteen (15) minutes of receiving an electronic request for removal from the consumer or within three (3) business days of receiving a written or telephonic request for removal from the consumer, who provides all of the following:
(a) Proper identification.
(b) The unique personal identification number or password provided by the consumer reporting agency pursuant to Section 75-24-201.
(8) A consumer reporting agency shall require proper identification of the person making a request to place or remove a security freeze.
* * *
( * * *9)
A consumer reporting agency may not charge a fee * * * to
put a security freeze in place, remove a freeze, or lift a freeze pursuant to
subsection (1) or (7) of this section, provided that any such request is made
electronically. If a request to put a security freeze in place is made
by telephone or by mail, a consumer reporting agency may charge a fee to a
consumer not to exceed Three Dollars ($3.00), except that a consumer reporting
agency may not charge any fee to a consumer over the age of sixty-two (62), to
a victim of identity theft who has submitted a copy of a valid investigative or incident report or
complaint with a law enforcement agency about the unlawful use of the victim's
identifying information by another person, or to the victim's spouse. A
consumer reporting agency shall not charge an additional fee to a consumer who
requests to temporarily lift for a specific period of time or to a specific
third party, reinstate, or remove a security freeze. A consumer reporting
agency shall not charge a consumer for a one-time reissue of a replacement
personal identification number. A consumer reporting agency may charge a fee
not to exceed Three Dollars ($3.00) to provide any subsequent replacement
personal identification number.
(10) A parent or guardian of a minor residing in this state may, upon appropriate proof of identity and proof of their relationship to the minor, inquire of a nationwide consumer reporting agency, as defined in Section 603(p) [15 USC 1681a(p)] of the federal Fair Credit Reporting Act, 15 USC 1681 et seq., as to the existence of a credit report for the minor of the parent or guardian. If a credit report for the minor exists, the nationwide consumer reporting agency shall make reasonable efforts to prevent providing a credit report on the minor until the minor reaches the age of majority. If a credit report for the minor does not exist, the nationwide consumer reporting agency has no obligation to create one.
(11) At any time that a consumer is required to receive a summary of rights required under Section 609 of the federal Fair Credit Reporting Act, the following notice shall be included:
"Mississippi Consumers Have the Right to Obtain a Security Freeze.
You have a right to place a "security freeze" on your credit report pursuant to Mississippi law. The security freeze will prohibit a consumer reporting agency from releasing any information in your credit report without your express authorization. A security freeze can be requested in writing by first-class mail, by telephone, or electronically. You also may request a freeze by visiting the following website: [URL] or calling the following telephone number: [NUMBER].
The security freeze is designed to prevent credit, loans and services from being approved in your name without your consent. However, you should be aware that using a security freeze to take control over who gains access to the personal and financial information in your credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding new loans, credit, mortgage, insurance, rental housing, employment, investment, license, cellular phone, utilities, digital signature, Internet credit card transactions, or other services, including an extension of credit at point of sale.
The freeze will be placed within three (3) business days if you request it by mail, or within twenty-four (24) hours if you request it by telephone or electronically. When you place a security freeze on your credit report, within three (3) business days, you will be sent a personal identification number or a password to use when you want to remove the security freeze, temporarily lift it, or lift it with respect to a particular third party.
A freeze does not apply when you have an existing account relationship and a copy of your report is requested by your existing creditor or its agents or affiliates for certain types of account review, collection, fraud control, or similar activities.
You should plan ahead and lift a freeze if you are actively seeking credit or services as a security freeze may slow your applications, as mentioned above.
You can remove a freeze, temporarily lift a freeze, or lift a freeze with respect to a particular third party by contacting the consumer reporting agency and providing all of the following:
(a) Your personal identification number or password,
(b) Proper identification to verify your identity, and
(c) Proper information regarding the period of time you want your report available to users of the credit report, or the third party with respect to which you want to lift the freeze.
A consumer reporting agency that receives a request from you to temporarily lift a freeze or to lift a freeze with respect to a particular third party on a credit report shall comply with the request no later than three (3) business days after receiving the request by mail and no later than fifteen (15) minutes after receiving a request by telephone or electronically. A consumer reporting agency may charge you up to Three Dollars ($3.00) to institute a freeze if your request is made by telephone or by mail. A consumer reporting agency may not charge you any amount to freeze, remove a freeze, temporarily lift a freeze, or lift a freeze with respect to a particular third party, if any of the following are true:
(a) Your request is made electronically.
(b) You are over the age of sixty-two (62).
(c) You are the victim of identity theft and have submitted a copy of a valid investigative or incident report or complaint with a law enforcement agency about the unlawful use of your identifying information by another person, or you are the spouse of such a person.
You have a right to bring a civil action against someone who violates your rights under the credit reporting laws. The action can be brought against a consumer reporting agency or a user of your credit report."
(12) A violation of Sections 75-24-201 through 75-24-217 is a violation of Section 75-24-5.
SECTION 3. This act shall take effect and be in force from and after July 1, 2016.
