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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.
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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 16G-15 of the Criminal Code of 1961, may
not | |||||||||||||||||||
23 | lend money or extend credit without taking reasonable steps to |
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1 | verify the
consumer's identity and confirm that the application | ||||||
2 | for an extension of
credit
is not the result of financial | ||||||
3 | 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. This subsection (c) does not prevent a consumer | ||||||
9 | reporting agency from advising a third party that a security | ||||||
10 | freeze is in effect with respect to the consumer's credit | ||||||
11 | report.
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12 | (d) A consumer reporting agency shall place a security | ||||||
13 | freeze on a consumer's credit report no later than 5 business | ||||||
14 | days after receiving a written request from the consumer:
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15 | (1) a written request described in subsection (c); | ||||||
16 | (2) proper identification; and | ||||||
17 | (3) payment of a fee, if applicable.
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18 | (e) Upon placing the security freeze on the consumer's | ||||||
19 | credit report, the consumer reporting agency shall send to the | ||||||
20 | consumer within 10 business days a written confirmation of the | ||||||
21 | placement of the security freeze and a unique personal | ||||||
22 | identification number or password or similar device, other than | ||||||
23 | the consumer's Social Security number, to be used by the | ||||||
24 | consumer when providing authorization for the release of his or | ||||||
25 | her credit report for a specific party or period of time.
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26 | (f) If the consumer wishes to allow his or her credit |
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1 | report to be accessed for a specific party or period of time | ||||||
2 | while a freeze is in place, he or she shall contact the | ||||||
3 | consumer reporting agency using a point of contact designated | ||||||
4 | by the consumer reporting agency, request that the freeze be | ||||||
5 | temporarily lifted, and provide the following:
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6 | (1) Proper identification;
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7 | (2) The unique personal identification number or | ||||||
8 | password or similar device provided by the consumer | ||||||
9 | reporting agency;
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10 | (3) The proper information regarding the third party or | ||||||
11 | time period for which the report shall be available to | ||||||
12 | users of the credit report; and
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13 | (4) A fee, if applicable.
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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.
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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.
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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.
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26 | (i) A consumer reporting agency shall remove or temporarily |
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1 | lift a freeze placed on a consumer's credit report only in the | ||||||
2 | following cases:
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3 | (1) upon consumer request, pursuant to subsection (f) | ||||||
4 | or subsection (l) of this Section; or
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5 | (2) if the consumer's credit report was frozen due to a | ||||||
6 | material misrepresentation of fact by the consumer.
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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.
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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.
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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.
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24 | (l) A security freeze shall remain in place until the | ||||||
25 | consumer requests, using a point of contact designated by the | ||||||
26 | consumer reporting agency, that the security freeze be removed. |
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1 | A credit reporting agency shall remove a security freeze within | ||||||
2 | 3 business days of receiving a request for removal from the | ||||||
3 | consumer, who provides:
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4 | (1) Proper identification;
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5 | (2) The unique personal identification number or | ||||||
6 | password or similar device provided by the consumer | ||||||
7 | reporting agency; and
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8 | (3) A fee, if applicable.
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9 | (m) A consumer reporting agency shall require proper | ||||||
10 | identification of the person making a request to place or | ||||||
11 | remove a security freeze.
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12 | (n) The provisions of subsections (c) through (m) of this | ||||||
13 | Section do not apply to the use of a consumer credit report by | ||||||
14 | any of the following:
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15 | (1) A person or entity, or a subsidiary, affiliate, or | ||||||
16 | agent of that person or entity, or an assignee of a | ||||||
17 | financial obligation owing by the consumer to that person | ||||||
18 | or entity, or a prospective assignee of a financial | ||||||
19 | obligation owing by the consumer to that person or entity | ||||||
20 | in conjunction with the proposed purchase of the financial | ||||||
21 | obligation, with which the consumer has or had prior to | ||||||
22 | assignment an account or contract, including a demand | ||||||
23 | deposit account, or to whom the consumer issued a | ||||||
24 | negotiable instrument, for the purposes of reviewing the | ||||||
25 | account or collecting the financial obligation owing for | ||||||
26 | the account, contract, or negotiable instrument. For |
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1 | purposes of this subsection, "reviewing the account" | ||||||
2 | includes activities related to account maintenance, | ||||||
3 | monitoring, credit line increases, and account upgrades | ||||||
4 | and enhancements.
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5 | (2) A subsidiary, affiliate, agent, assignee, or | ||||||
6 | prospective assignee of a person to whom access has been | ||||||
7 | granted under subsection (f) of this Section for purposes | ||||||
8 | of facilitating the extension of credit or other | ||||||
9 | permissible use.
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10 | (3) Any state or local agency, law enforcement agency, | ||||||
11 | trial court, or private collection agency acting pursuant | ||||||
12 | to a court order, warrant, or subpoena.
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13 | (4) A child support agency acting pursuant to Title | ||||||
14 | IV-D of the Social Security Act.
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15 | (5) The State or its agents or assigns acting to | ||||||
16 | investigate fraud.
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17 | (6) The Department of Revenue or its agents or assigns | ||||||
18 | acting to investigate or collect delinquent taxes or unpaid | ||||||
19 | court orders or to fulfill any of its other statutory | ||||||
20 | responsibilities.
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21 | (7) The use of credit information for the purposes of | ||||||
22 | prescreening as provided for by the federal Fair Credit | ||||||
23 | Reporting Act.
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24 | (8) Any person or entity administering a credit file | ||||||
25 | monitoring subscription or similar service to which the | ||||||
26 | consumer has subscribed.
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1 | (9) Any person or entity for the purpose of providing a | ||||||
2 | consumer with a copy of his or her credit report or score | ||||||
3 | upon the consumer's request.
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4 | (10) Any person using the information in connection | ||||||
5 | with the underwriting of insurance.
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6 | (n-5) This Section does not prevent a consumer reporting | ||||||
7 | agency from charging a fee of no more than $10 to a consumer | ||||||
8 | for each freeze, removal, or temporary lift of the freeze, | ||||||
9 | regarding access to a consumer credit report, except that a | ||||||
10 | consumer reporting agency may not charge a fee to (i) a | ||||||
11 | consumer 65 years of age or over for placement and removal of a | ||||||
12 | freeze, or (ii) a victim of identity theft who has submitted to | ||||||
13 | the consumer reporting agency a valid copy of a police report, | ||||||
14 | investigative report, or complaint that the consumer has filed | ||||||
15 | with a law enforcement agency about unlawful use of his or her | ||||||
16 | personal information by another person.
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17 | (o) If a security freeze is in place, a consumer reporting | ||||||
18 | agency shall not change any of the following official | ||||||
19 | information in a credit report without sending a written | ||||||
20 | confirmation of the change to the consumer within 30 days of | ||||||
21 | the change being posted to the consumer's file: (i) name, (ii) | ||||||
22 | date of birth, (iii) Social Security number, and (iv) address. | ||||||
23 | Written confirmation is not required for technical | ||||||
24 | modifications of a consumer's official information, including | ||||||
25 | name and street abbreviations, complete spellings, or | ||||||
26 | transposition of numbers or letters. In the case of an address |
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1 | change, the written confirmation shall be sent to both the new | ||||||
2 | address and to the former address.
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3 | (o-5) A consumer reporting agency shall ensure that any | ||||||
4 | information provided to a consumer via an Internet website, | ||||||
5 | telephone, fax, or other electronic means is accurate, reflects | ||||||
6 | the provisions of this Section in its entirety, and includes | ||||||
7 | the following:
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8 | (1) A link that is clearly posted on the home page of | ||||||
9 | the consumer reporting agency's Internet website to | ||||||
10 | information on how to place, temporarily lift, and remove a | ||||||
11 | security freeze. | ||||||
12 | (2) Information on placing a security freeze and the | ||||||
13 | designated address for submitting a request that is | ||||||
14 | available via all telephone, fax, Internet, or other | ||||||
15 | electronic means.
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16 | (p) The following entities are not required to place a | ||||||
17 | security freeze in a consumer report, however, pursuant to | ||||||
18 | paragraph (3) of this subsection, a consumer reporting agency | ||||||
19 | acting as a reseller shall honor any security freeze placed on | ||||||
20 | a consumer credit report by another consumer reporting agency:
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21 | (1) A check services or fraud prevention services | ||||||
22 | company, which issues reports on incidents of fraud or | ||||||
23 | authorizations for the purpose of approving or processing | ||||||
24 | negotiable instruments, electronic funds transfers, or | ||||||
25 | similar methods of payment.
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26 | (2) A deposit account information service company, |
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1 | which issues reports regarding account closures due to | ||||||
2 | fraud, substantial overdrafts, ATM abuse, or similar | ||||||
3 | negative information regarding a consumer to inquiring | ||||||
4 | banks or other financial institutions for use only in | ||||||
5 | reviewing a consumer request for a deposit account at the | ||||||
6 | inquiring bank or financial institution.
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7 | (3) A consumer reporting agency that:
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8 | (A) acts only to resell credit information by | ||||||
9 | assembling and merging information contained in a | ||||||
10 | database of one or more consumer reporting agencies; | ||||||
11 | and
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12 | (B) does not maintain a permanent database of | ||||||
13 | credit information from which new credit reports are | ||||||
14 | produced.
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15 | (q) For purposes of this Section: | ||||||
16 | "Credit report" has the same meaning as "consumer report", | ||||||
17 | as ascribed to it in 15 U.S.C. Sec. 1681a(d). | ||||||
18 | "Consumer reporting agency" has the meaning ascribed to it | ||||||
19 | in 15 U.S.C. Sec. 1681a(f). | ||||||
20 | "Security freeze" means
a notice placed in a consumer's | ||||||
21 | credit report, at the request of the consumer and subject to | ||||||
22 | certain exceptions, that prohibits the consumer reporting | ||||||
23 | agency from releasing the consumer's credit report or score | ||||||
24 | relating to an extension of credit, without the express | ||||||
25 | authorization of the consumer.
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26 | "Extension of credit" does not include
an increase in an |
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1 | existing open-end credit plan, as defined in Regulation Z of
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2 | the Federal Reserve System (12 C.F.R. 226.2), or any change to | ||||||
3 | or review of an
existing credit account.
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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.
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11 | (r) Any person who violates this Section commits an
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12 | unlawful practice within the meaning of this Act.
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13 | (Source: P.A. 94-74, eff. 1-1-06; 94-799, eff. 1-1-07; 95-331, | ||||||
14 | eff. 8-21-07.)
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15 | Section 99. Effective date. This Act takes effect upon | ||||||
16 | becoming law.
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