Full Text of HB3425 99th General Assembly
HB3425 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB3425 Introduced , by Rep. Eddie Lee Jackson, Sr. SYNOPSIS AS INTRODUCED: |
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Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that consumer reporting agencies shall implement a credit freeze without cost to military personnel and veterans.
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| | A BILL FOR |
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| 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 |
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| 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 the 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 |
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| 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:
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| 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 |
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| 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.
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| 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 |
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| 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 |
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| 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 | 21 | | to the consumer reporting agency a valid copy of a police | 22 | | report, investigative report, or complaint that the consumer | 23 | | has filed with a law enforcement agency about unlawful use of | 24 | | his or her personal information by another person ; or (iii) a | 25 | | veteran or active duty military service member who has | 26 | | submitted to the consumer reporting agency a copy of his or her |
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| 1 | | most recent Certificate of Release or Discharge from Active | 2 | | Duty if a veteran or orders calling the service member to | 3 | | military service and any orders further extending the service | 4 | | member's period of service if currently active .
| 5 | | (o) If a security freeze is in place, a consumer reporting | 6 | | agency shall not change any of the following official | 7 | | information in a credit report without sending a written | 8 | | confirmation of the change to the consumer within 30 days of | 9 | | the change being posted to the consumer's file: (i) name, (ii) | 10 | | date of birth, (iii) Social Security number, and (iv) address. | 11 | | Written confirmation is not required for technical | 12 | | modifications of a consumer's official information, including | 13 | | name and street abbreviations, complete spellings, or | 14 | | transposition of numbers or letters. In the case of an address | 15 | | change, the written confirmation shall be sent to both the new | 16 | | address and to the former address.
| 17 | | (p) The following entities are not required to place a | 18 | | security freeze in a consumer report, however, pursuant to | 19 | | paragraph (3) of this subsection, a consumer reporting agency | 20 | | acting as a reseller shall honor any security freeze placed on | 21 | | a consumer credit report by another consumer reporting agency:
| 22 | | (1) A check services or fraud prevention services | 23 | | company, which issues reports on incidents of fraud or | 24 | | authorizations for the purpose of approving or processing | 25 | | negotiable instruments, electronic funds transfers, or | 26 | | similar methods of payment.
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| 1 | | (2) A deposit account information service company, | 2 | | which issues reports regarding account closures due to | 3 | | fraud, substantial overdrafts, ATM abuse, or similar | 4 | | negative information regarding a consumer to inquiring | 5 | | banks or other financial institutions for use only in | 6 | | reviewing a consumer request for a deposit account at the | 7 | | inquiring bank or financial institution.
| 8 | | (3) A consumer reporting agency that:
| 9 | | (A) acts only to resell credit information by | 10 | | assembling and merging information contained in a | 11 | | database of one or more consumer reporting agencies; | 12 | | and
| 13 | | (B) does not maintain a permanent database of | 14 | | credit information from which new credit reports are | 15 | | produced.
| 16 | | (q) For purposes of this Section: | 17 | | "Credit report" has the same meaning as "consumer report", | 18 | | as ascribed to it in 15 U.S.C. Sec. 1681a(d). | 19 | | "Consumer reporting agency" has the meaning ascribed to it | 20 | | in 15 U.S.C. Sec. 1681a(f). | 21 | | "Security freeze" means
a notice placed in a consumer's | 22 | | credit report, at the request of the consumer and subject to | 23 | | certain exceptions, that prohibits the consumer reporting | 24 | | agency from releasing the consumer's credit report or score | 25 | | relating to an extension of credit, without the express | 26 | | authorization of the consumer.
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| 1 | | "Extension of credit" does not include
an increase in an | 2 | | existing open-end credit plan, as defined in Regulation Z of
| 3 | | the Federal Reserve System (12 C.F.R. 226.2), or any change to | 4 | | or review of an
existing credit account.
| 5 | | "Proper authority" means documentation that shows that a | 6 | | parent, guardian, or agent has authority to act on behalf of a | 7 | | minor or disabled person. "Proper authority" includes (1) an | 8 | | order issued by a court of law that shows that a guardian has | 9 | | authority to act on behalf of a minor or disabled person, (2) a | 10 | | written, notarized statement signed by a parent that expressly | 11 | | describes the authority of the parent to act on behalf of the | 12 | | minor, or (3) a durable power of attorney that complies with | 13 | | the Illinois Power of Attorney Act. | 14 | | "Proper identification" means information generally deemed | 15 | | sufficient to identify a person. Only if the consumer is unable | 16 | | to reasonably identify himself or herself with the information | 17 | | described above, may a consumer reporting agency require | 18 | | additional information concerning the consumer's employment | 19 | | and personal or family history in order to verify his or her | 20 | | identity.
| 21 | | "Military service member" means a resident of Illinois who | 22 | | is a member of any component of the U.S. Armed Forces or the | 23 | | National Guard of any state, the District of Columbia, a | 24 | | commonwealth, or a territory of the United States who has | 25 | | entered any full-time training or duty for which the service | 26 | | member was ordered to report by the President, the governor of |
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| 1 | | a state, commonwealth, or territory of the United States, or | 2 | | another appropriate military authority. | 3 | | "Veteran" means a person who (i) has been a member of the | 4 | | armed forces of the United States or, while a citizen of the | 5 | | United States, was a member of the armed forces of allies of | 6 | | the United States in time of hostilities with a foreign country | 7 | | and (ii) has served under one or more of the following | 8 | | conditions: (1) the veteran served a total of at least 6 | 9 | | months; (2) the veteran served for the duration of hostilities | 10 | | regardless of the length of the engagement; (3) the veteran was | 11 | | discharged on the basis of hardship; or (4) the veteran was | 12 | | released from active duty because of a service connected | 13 | | disability and was discharged under honorable conditions. | 14 | | (r) Any person who violates this Section commits an
| 15 | | unlawful practice within the meaning of this Act.
| 16 | | (Source: P.A. 97-597, eff. 1-1-12; 97-1150, eff. 1-25-13; | 17 | | 98-486, eff. 1-1-14; 98-756, eff. 7-16-14.)
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