2018 -- S 2622 | |
======== | |
LC003976 | |
======== | |
STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2018 | |
____________ | |
A N A C T | |
RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS - | |
CONSUMER EMPOWERMENT AND IDENTITY THEFT PREVENTION ACT OF 2006 | |
| |
Introduced By: Senators Calkin, Quezada, Goldin, Conley, and Goodwin | |
Date Introduced: March 01, 2018 | |
Referred To: Senate Judiciary | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 6-48-5 of the General Laws in Chapter 6-48 entitled "Consumer |
2 | Empowerment and Identity Theft Prevention Act of 2006" is hereby amended to read as follows: |
3 | 6-48-5. Security freeze -- Timing, covered entities, cost. Security freeze -- Timing, |
4 | and covered entities. |
5 | (a) (1) A consumer may elect to place a "security freeze" on his or her credit report by |
6 | making a request by certified mail to a consumer reporting agency at an address designated by the |
7 | consumer reporting agency to receive such requests. |
8 | (2) A consumer reporting agency shall place a security freeze on a consumer's credit |
9 | report no later than five (5) business days after receiving from the consumer: |
10 | (i) A written request as described in subsection (a); and |
11 | (ii) Proper identification; and. |
12 | (iii) Payment of a fee, if applicable. |
13 | (3) The consumer reporting agency shall send a written confirmation of the security |
14 | freeze to the consumer within ten (10) business days of placing the freeze and at the same time |
15 | shall provide the consumer with a unique personal identification number, password, or similar |
16 | device to be used by the consumer when providing authorization for the release of his or her |
17 | credit for a specific period of time, or when permanently removing the freeze. |
18 | (4) If the consumer wishes to allow his or her credit report to be accessed for a specific |
| |
1 | period of time while a freeze is in place, he or she shall contact the consumer reporting agency, |
2 | using a point of contact designated by the consumer reporting agency, to request that the freeze |
3 | be temporarily lifted and provide the following: |
4 | (i) Proper identification; |
5 | (ii) The unique personal identification number or password provided by the consumer |
6 | reporting agency pursuant to subsection (a)(3) of this section; and |
7 | (iii) The proper information regarding the time period for which the report shall be |
8 | available to users of the credit report; and. |
9 | (iv) A fee if applicable. |
10 | (5) A consumer reporting agency that receives a request from a consumer to temporarily |
11 | lift a freeze on a credit report pursuant to subsection (a)(4) of this section shall comply with the |
12 | request no later than three (3) business days after receiving the request. |
13 | (6) A consumer reporting agency may develop procedures involving the use of telephone, |
14 | fax, or, upon the consent of the consumer in the manner required by the Electronic Signatures in |
15 | Global and National Commerce Act hereinafter referred to as ("E-Sign") for legally required |
16 | notices, by the Internet, e-mail, or other electronic media to receive and process a request from a |
17 | consumer to temporarily lift a freeze on a credit report pursuant to subsection (a)(4) of this |
18 | section in an expedited manner. |
19 | (7) A consumer reporting agency shall remove or temporarily lift a freeze placed on a |
20 | consumer's credit report only in the following cases: |
21 | (i) Upon consumer request, pursuant to subsection (a)(4) or (a)(10) of this section; and |
22 | (ii) If the consumer's credit report was frozen due to a material misrepresentation of fact |
23 | by the consumer. If a consumer reporting agency intends to remove a freeze upon a consumer's |
24 | credit report pursuant to this paragraph, the consumer reporting agency shall notify the consumer |
25 | in writing prior to removing the freeze on the consumer's credit report. |
26 | (8) If a third-party requests access to a consumer credit report on which a security freeze |
27 | is in effect; and this request is in connection with an application for credit or any other use; and |
28 | the consumer does not allow his or her credit report to be accessed; then the third-party may treat |
29 | the application as incomplete. |
30 | (9) A security freeze shall remain in place until the consumer requests, using a point of |
31 | contact designated by the consumer reporting agency, that the security freeze be removed. A |
32 | consumer reporting agency shall remove a security freeze within three (3) business days of |
33 | receiving a request for removal from the consumer who provides all of the following: |
34 | (i) Proper identification; and |
| LC003976 - Page 2 of 5 |
1 | (ii) The unique personal identification number or password provided by the consumer |
2 | reporting agency pursuant to subsection (a)(3) of this section; and. |
3 | (iii) A fee, if applicable. |
4 | (10) A consumer reporting agency shall require proper identification of the person |
5 | making a request to place or remove a security freeze. |
6 | (11) A consumer reporting agency may not suggest or otherwise state or imply to a third |
7 | party that the consumer's security freeze reflects a negative credit score, history, report, or rating. |
8 | (12) The provisions of this section do not apply to the use of a consumer credit report by |
9 | any of the following: |
10 | (i) A person, or the person's subsidiary, affiliate, agent, or assignee with which the |
11 | consumer has, or prior to assignment, had an account, contract, or debtor-creditor relationship for |
12 | the purposes of reviewing the account or collecting the financial obligation owing for the account, |
13 | contract, or debt; |
14 | (ii) A subsidiary, affiliate, agent, assignee, or prospective assignee of a person to whom |
15 | access has been granted under subsection (a)(4) of this section for purposes of facilitating the |
16 | extension of credit or other permissible use; |
17 | (iii) Any person acting pursuant to a court order, warrant, or subpoena; |
18 | (iv) A state or local agency that administers a program for establishing and enforcing |
19 | child support obligations; |
20 | (v) The department of health or its agents or assigns acting to investigate fraud; |
21 | (vi) The attorney general or its agents or assigns acting to investigate fraud; |
22 | (vii) The division of taxation or its agents or assigns acting to investigate or collect |
23 | delinquent taxes or unpaid court orders or to fulfill any of its other statutory responsibilities; |
24 | (viii) The use of a credit report by a person for purposes of prescreening as defined by the |
25 | federal Fair Credit Reporting Act 15 U.S.C. ยง 1681 et. seq.; |
26 | (ix) Any person or entity administering a credit file monitoring subscription service to |
27 | which the consumer has subscribed; |
28 | (x) Any person or entity for the purpose of providing a consumer with a copy of his or |
29 | her credit report upon the consumer's request; and |
30 | (xi) Any person or entity for use in setting or adjusting a rate, adjusting a claim, or |
31 | underwriting for insurance purposes. |
32 | (13) A consumer may be charged a fee of no more than ten dollars ($10.00) for any |
33 | security freeze services, including, but not limited to, the placement, temporary lifting, and |
34 | permanent removal of a security freeze. The consumer may not be charged for a one-time reissue |
| LC003976 - Page 3 of 5 |
1 | of a new personal identification number; provided, however, the consumer may be charged not |
2 | more than five dollars ($5.00) for subsequent instances of loss of the personal identification |
3 | number. However, a consumer reporting agency may not charge any fee to a victim of identity |
4 | theft who has submitted a copy of an incident report from, or a complaint to, a law enforcement |
5 | agency or to a consumer who is of sixty-five (65) years of age or older. |
6 | (b) Entities not required to place a security freeze. |
7 | The following entities are not required to place a security freeze on a credit report: |
8 | (1) A consumer reporting agency that acts only as a reseller of credit information by |
9 | assembling and merging information contained in the database of another consumer reporting |
10 | agency or multiple consumer credit reporting agencies and does not maintain a permanent data |
11 | base of credit information from which new consumer credit report are produced. However, a |
12 | consumer reporting agency acting as a reseller shall honor any security freeze placed on a |
13 | consumer credit report by another consumer reporting agency. |
14 | (2) A check services or fraud prevention services company that issues reports on |
15 | incidents of fraud or authorizations for the purpose of approving or processing negotiable |
16 | instruments, electronic funds transfers, or similar methods of payments. |
17 | (3) A deposit account information service company, that issues reports regarding account |
18 | closures due to fraud, substantial overdrafts, ATM abuse, or similar negative information |
19 | regarding a consumer, to inquiring banks or other financial institutions for use only in reviewing a |
20 | consumer request for a deposit account at the inquiring bank or financial institution. |
21 | (4) Any database or file that consists of any information adverse to the interests of the |
22 | consumer, including, but not limited to, criminal record information; personal loss history |
23 | information; information used for fraud prevention or detection; tenant screening; and |
24 | employment screening. |
25 | SECTION 2. This act shall take effect upon passage. |
======== | |
LC003976 | |
======== | |
| LC003976 - Page 4 of 5 |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS - | |
CONSUMER EMPOWERMENT AND IDENTITY THEFT PREVENTION ACT OF 2006 | |
*** | |
1 | This act would provide that a credit reporting agency may not charge a consumer any fee |
2 | in connection with the placement, temporary lifting or permanent removal of a credit security |
3 | freeze. |
4 | This act would take effect upon passage. |
======== | |
LC003976 | |
======== | |
| LC003976 - Page 5 of 5 |