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Public Act 100-0589 | ||||
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AN ACT concerning business.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Consumer Fraud and Deceptive Business | ||||
Practices Act is amended by changing Section 2MM as follows:
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(815 ILCS 505/2MM)
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Sec. 2MM. Verification of accuracy of consumer reporting | ||||
information used to
extend consumers credit and security freeze | ||||
on credit reports. | ||||
(a) A credit card issuer who mails an offer or solicitation | ||||
to apply for a
credit card and who receives a completed | ||||
application in response to the offer
or
solicitation which | ||||
lists an address that is not substantially the same as the
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address on the offer or solicitation may not issue a credit | ||||
card based on that
application until reasonable steps have been | ||||
taken to verify the applicant's
change of address.
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(b) Any person who uses a consumer credit report in | ||||
connection with the
approval of credit based on the application | ||||
for an extension of credit, and who
has received notification | ||||
of a police report filed with a consumer reporting
agency that | ||||
the applicant has been a victim of financial
identity theft, as | ||||
defined in Section 16-30 or 16G-15 of the Criminal Code of 1961 | ||||
or the Criminal Code of 2012, may
not lend money or extend |
credit without taking reasonable steps to verify the
consumer's | ||
identity and confirm that the application for an extension of
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credit
is not the result of financial identity theft.
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(c) A consumer may request that a security freeze be placed | ||
on his or her credit report by sending a request in writing by | ||
certified mail or by at least one of telephone or electronic | ||
means to a consumer reporting agency at an address or telephone | ||
or electronic location designated by the consumer reporting | ||
agency to receive such requests. | ||
The following persons may request that a security freeze be | ||
placed on the credit report of a person with a disability: | ||
(1) a guardian of the person with a disability who is | ||
the subject of the request, appointed under Article XIa of | ||
the Probate Act of 1975; and | ||
(2) an agent of the person with a disability who is the | ||
subject of the request, under a written durable power of | ||
attorney that complies with the Illinois Power of Attorney | ||
Act. | ||
The following persons may request that a security freeze be | ||
placed on the credit report of a minor: | ||
(1) a guardian of the minor who is the subject of the | ||
request, appointed under Article XI of the Probate Act of | ||
1975; | ||
(2) a parent of the minor who is the subject of the | ||
request; and | ||
(3) a guardian appointed under the Juvenile Court Act |
of 1987 for a minor under the age of 18 who is the subject | ||
of the request or, with a court order authorizing the | ||
guardian consent power, for a youth who is the subject of | ||
the request who has attained the age of 18, but who is | ||
under the age of 21. | ||
This subsection (c) 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.
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(d) A consumer reporting agency shall place a security | ||
freeze on a consumer's credit report no later than 5 business | ||
days after receiving a written request from the consumer:
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(1) a written request described in subsection (c); and | ||
(2) proper identification . ; and | ||
(3) payment of a fee, if applicable.
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(e) Upon placing the security freeze on the consumer's | ||
credit report, the consumer reporting agency shall send to the | ||
consumer within 10 business days a written confirmation of the | ||
placement of the security freeze and a unique personal | ||
identification number or password or similar device, other than | ||
the consumer's Social Security number, to be used by the | ||
consumer when providing authorization for the release of his or | ||
her credit report for a specific party or period of time.
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(f) If the consumer wishes to allow his or her credit | ||
report to be accessed for a specific party or period of time | ||
while a freeze is in place, he or she shall contact the | ||
consumer reporting agency using a point of contact designated |
by the consumer reporting agency, request that the freeze be | ||
temporarily lifted, and provide the following:
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(1) proper identification;
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(2) the unique personal identification number or | ||
password or similar device provided by the consumer | ||
reporting agency;
and | ||
(3) the proper information regarding the third party or | ||
time period for which the report shall be available to | ||
users of the credit report . ; and
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(4) A fee, if applicable.
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A security freeze for a minor may not be temporarily | ||
lifted. This Section does not require a consumer reporting | ||
agency to provide to a minor or a parent or guardian of a minor | ||
on behalf of the minor a unique personal identification number, | ||
password, or similar device provided by the consumer reporting | ||
agency for the minor, or parent or guardian of the minor, to | ||
use to authorize the consumer reporting agency to release | ||
information from a minor. | ||
(g) A consumer reporting agency shall develop a contact | ||
method to receive and process a request from a consumer to | ||
temporarily lift a freeze on a credit report pursuant to | ||
subsection (f) in an expedited manner.
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A contact method under this subsection shall include:
(i) a | ||
postal address; and (ii) an electronic contact method chosen by | ||
the consumer reporting agency, which may include the use of | ||
telephone, fax, Internet, or other electronic means.
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(h) A consumer reporting agency that receives a request | ||
from a consumer to temporarily lift a freeze on a credit report | ||
pursuant to subsection (f), shall comply with the request no | ||
later than 3 business days after receiving the request.
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(i) A consumer reporting agency shall remove or temporarily | ||
lift a freeze placed on a consumer's credit report only in the | ||
following cases:
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(1) upon consumer request, pursuant to subsection (f) | ||
or subsection (l) of this Section; or
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(2) if the consumer's credit report was frozen due to a | ||
material misrepresentation of fact by the consumer.
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If a consumer reporting agency intends to remove a freeze | ||
upon a consumer's credit report pursuant to this subsection, | ||
the consumer reporting agency shall notify the consumer in | ||
writing prior to removing the freeze on the consumer's credit | ||
report.
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(j) If a third party requests access to a 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 his or her credit report to be | ||
accessed for that specific party or period of time, the third | ||
party may treat the application as incomplete.
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(k) If a consumer requests a security freeze, the credit | ||
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 party or period of time while the | ||
freeze is in place.
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(l) A security freeze shall remain in place until the | ||
consumer or person authorized under subsection (c) to act on | ||
behalf of the minor or person with a disability who is the | ||
subject of the security freeze requests, using a point of | ||
contact designated by the consumer reporting agency, that the | ||
security freeze be removed. A credit reporting agency shall | ||
remove a security freeze within 3 business days of receiving a | ||
request for removal from the consumer, who provides:
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(1) proper identification;
and | ||
(2) the unique personal identification number or | ||
password or similar device provided by the consumer | ||
reporting agency . ; and
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(3) A fee, if applicable.
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(m) A consumer reporting agency shall require proper | ||
identification of the person making a request to place or | ||
remove a security freeze and may require proper identification | ||
and proper authority from the person making the request to | ||
place or remove a freeze on behalf of the person with a | ||
disability or minor.
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(n) The provisions of subsections (c) through (m) of this | ||
Section do not apply to the use of a consumer credit report by | ||
any of the following:
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(1) A person or entity, or a subsidiary, affiliate, or | ||
agent of that person or entity, or an assignee of a |
financial obligation owing by the consumer to that person | ||
or entity, or a prospective assignee of a financial | ||
obligation owing by the consumer to that person or entity | ||
in conjunction with the proposed purchase of the financial | ||
obligation, with which the consumer has or had prior to | ||
assignment an account or contract, including a demand | ||
deposit account, or to whom the consumer issued a | ||
negotiable instrument, for the purposes of reviewing the | ||
account or collecting the financial obligation owing for | ||
the account, contract, or negotiable instrument. For | ||
purposes of this subsection, "reviewing the account" | ||
includes activities related to account maintenance, | ||
monitoring, credit line increases, and account upgrades | ||
and enhancements.
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(2) A subsidiary, affiliate, agent, assignee, or | ||
prospective assignee of a person to whom access has been | ||
granted under subsection (f) of this Section for purposes | ||
of facilitating the extension of credit or other | ||
permissible use.
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(3) Any state or local agency, law enforcement agency, | ||
trial court, or private collection agency acting pursuant | ||
to a court order, warrant, or subpoena.
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(4) A child support agency acting pursuant to Title | ||
IV-D of the Social Security Act.
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(5) The State or its agents or assigns acting to | ||
investigate fraud.
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(6) The Department of Revenue or its agents or assigns | ||
acting to investigate or collect delinquent taxes or unpaid | ||
court orders or to fulfill any of its other statutory | ||
responsibilities.
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(7) The use of credit information for the purposes of | ||
prescreening as provided for by the federal Fair Credit | ||
Reporting Act.
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(8) Any person or entity administering a credit file | ||
monitoring subscription or similar service to which the | ||
consumer has subscribed.
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(9) Any person or entity for the purpose of providing a | ||
consumer with a copy of his or her credit report or score | ||
upon the consumer's request.
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(10) Any person using the information in connection | ||
with the underwriting of insurance.
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(n-5) A consumer reporting agency may not impose a charge | ||
on a consumer for placing a freeze, removing a freeze, or | ||
temporarily lifting a freeze. This Section does not prevent a | ||
consumer reporting agency from charging a fee of no more than | ||
$10 to a consumer for each freeze, removal, or temporary lift | ||
of the freeze, regarding access to a consumer credit report, | ||
except that a consumer reporting agency may not charge a fee | ||
to: (i) a consumer 65 years of age or over for placement and | ||
removal of a freeze; (ii) a victim of identity theft who has | ||
submitted to the consumer reporting agency a valid copy of a | ||
police report, investigative report, or complaint that the |
consumer has filed with a law enforcement agency about unlawful | ||
use of his or her personal information by another person; or | ||
(iii) an active duty military service member who has submitted | ||
to the consumer reporting agency a copy of his or her orders | ||
calling the service member to military service and any orders | ||
further extending the service member's period of service if | ||
currently active.
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(o) If a security freeze is in place, a consumer reporting | ||
agency shall not change any of the following official | ||
information in a credit report without sending a written | ||
confirmation of the change to the consumer within 30 days of | ||
the change being posted to the consumer's file: (i) name, (ii) | ||
date of birth, (iii) Social Security number, and (iv) address. | ||
Written confirmation is not required for technical | ||
modifications of a consumer's official information, including | ||
name and street abbreviations, complete spellings, or | ||
transposition of numbers or letters. In the case of an address | ||
change, the written confirmation shall be sent to both the new | ||
address and to the former address.
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(p) The following entities are not required to place a | ||
security freeze in a consumer report, however, pursuant to | ||
paragraph (3) of this subsection, a consumer reporting agency | ||
acting as a reseller shall honor any security freeze placed on | ||
a consumer credit report by another consumer reporting agency:
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(1) A check services or fraud prevention services | ||
company, which issues reports on incidents of fraud or |
authorizations for the purpose of approving or processing | ||
negotiable instruments, electronic funds transfers, or | ||
similar methods of payment.
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(2) A deposit account information service company, | ||
which issues reports regarding account closures due to | ||
fraud, substantial overdrafts, ATM abuse, or similar | ||
negative information regarding a consumer to inquiring | ||
banks or other financial institutions for use only in | ||
reviewing a consumer request for a deposit account at the | ||
inquiring bank or financial institution.
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(3) A consumer reporting agency that:
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(A) acts only to resell credit information by | ||
assembling and merging information contained in a | ||
database of one or more consumer reporting agencies; | ||
and
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(B) does not maintain a permanent database of | ||
credit information from which new credit reports are | ||
produced.
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(q) For purposes of this Section: | ||
"Credit report" has the same meaning as "consumer report", | ||
as ascribed to it in 15 U.S.C. Sec. 1681a(d). | ||
"Consumer reporting agency" has the meaning ascribed to it | ||
in 15 U.S.C. Sec. 1681a(f). | ||
"Security freeze" means
a notice placed in a consumer's | ||
credit report, at the request of the consumer and subject to | ||
certain exceptions, that prohibits the consumer reporting |
agency from releasing the consumer's credit report or score | ||
relating to an extension of credit, without the express | ||
authorization of the consumer.
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"Extension of credit" does not include
an increase in an | ||
existing open-end credit plan, as defined in Regulation Z of
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the Federal Reserve System (12 C.F.R. 226.2), or any change to | ||
or review of an
existing credit account.
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"Proper authority" means documentation that shows that a | ||
parent, guardian, or agent has authority to act on behalf of a | ||
minor or person with a disability. "Proper authority" includes | ||
(1) an order issued by a court of law that shows that a | ||
guardian has authority to act on behalf of a minor or person | ||
with a disability, (2) a written, notarized statement signed by | ||
a parent that expressly describes the authority of the parent | ||
to act on behalf of the minor, or (3) a durable power of | ||
attorney that complies with the Illinois Power of Attorney Act. | ||
"Proper identification" means information generally deemed | ||
sufficient to identify a person. Only if the consumer is unable | ||
to reasonably identify himself or herself with the information | ||
described above, may a consumer reporting agency require | ||
additional information concerning the consumer's employment | ||
and personal or family history in order to verify his or her | ||
identity.
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"Military service member" means a resident of Illinois who | ||
is a member of any component of the U.S. Armed Forces or the | ||
National Guard of any state, the District of Columbia, a |
commonwealth, or a territory of the United States who has | ||
entered any full-time training or duty for which the service | ||
member was ordered to report by the President, the governor of | ||
a state, commonwealth, or territory of the United States, or | ||
another appropriate military authority. | ||
(r) Any person who violates this Section commits an
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unlawful practice within the meaning of this Act.
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(Source: P.A. 98-486, eff. 1-1-14; 98-756, eff. 7-16-14; | ||
99-143, eff. 7-27-15; 99-373, eff. 1-1-16; 99-642, eff. | ||
7-28-16.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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