2018 -- S 2622

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LC003976

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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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:

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     SECTION 1. Section 6-48-5 of the General Laws in Chapter 6-48 entitled "Consumer

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Empowerment and Identity Theft Prevention Act of 2006" is hereby amended to read as follows:

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     6-48-5. Security freeze -- Timing, covered entities, cost. Security freeze -- Timing,

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and covered entities.

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     (a) (1) A consumer may elect to place a "security freeze" on his or her credit report by

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making a request by certified mail to a consumer reporting agency at an address designated by the

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consumer reporting agency to receive such requests.

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     (2) A consumer reporting agency shall place a security freeze on a consumer's credit

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report no later than five (5) business days after receiving from the consumer:

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     (i) A written request as described in subsection (a); and

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     (ii) Proper identification; and.

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     (iii) Payment of a fee, if applicable.

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     (3) The consumer reporting agency shall send a written confirmation of the security

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freeze to the consumer within ten (10) business days of placing the freeze and at the same time

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shall provide the consumer with a unique personal identification number, password, or similar

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device to be used by the consumer when providing authorization for the release of his or her

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credit for a specific period of time, or when permanently removing the freeze.

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     (4) If the consumer wishes to allow his or her credit report to be accessed for a specific

 

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period of time while a freeze is in place, he or she shall contact the consumer reporting agency,

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using a point of contact designated by the consumer reporting agency, to request that the freeze

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be temporarily lifted and provide the following:

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     (i) Proper identification;

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     (ii) The unique personal identification number or password provided by the consumer

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reporting agency pursuant to subsection (a)(3) of this section; and

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     (iii) The proper information regarding the time period for which the report shall be

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available to users of the credit report; and.

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     (iv) A fee if applicable.

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     (5) A consumer reporting agency that receives a request from a consumer to temporarily

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lift a freeze on a credit report pursuant to subsection (a)(4) of this section shall comply with the

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request no later than three (3) business days after receiving the request.

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     (6) A consumer reporting agency may develop procedures involving the use of telephone,

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fax, or, upon the consent of the consumer in the manner required by the Electronic Signatures in

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Global and National Commerce Act hereinafter referred to as ("E-Sign") for legally required

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notices, by the Internet, e-mail, or other electronic media to receive and process a request from a

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consumer to temporarily lift a freeze on a credit report pursuant to subsection (a)(4) of this

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section in an expedited manner.

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     (7) A consumer reporting agency shall remove or temporarily lift a freeze placed on a

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consumer's credit report only in the following cases:

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     (i) Upon consumer request, pursuant to subsection (a)(4) or (a)(10) of this section; and

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     (ii) If the consumer's credit report was frozen due to a material misrepresentation of fact

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by the consumer. If a consumer reporting agency intends to remove a freeze upon a consumer's

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credit report pursuant to this paragraph, the consumer reporting agency shall notify the consumer

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in writing prior to removing the freeze on the consumer's credit report.

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     (8) If a third-party requests access to a consumer credit report on which a security freeze

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is in effect; and this request is in connection with an application for credit or any other use; and

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the consumer does not allow his or her credit report to be accessed; then the third-party may treat

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the application as incomplete.

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     (9) A security freeze shall remain in place until the consumer requests, using a point of

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contact designated by the consumer reporting agency, that the security freeze be removed. A

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consumer reporting agency shall remove a security freeze within three (3) business days of

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receiving a request for removal from the consumer who provides all of the following:

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     (i) Proper identification; and

 

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     (ii) The unique personal identification number or password provided by the consumer

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reporting agency pursuant to subsection (a)(3) of this section; and.

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     (iii) A fee, if applicable.

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     (10) A consumer reporting agency shall require proper identification of the person

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making a request to place or remove a security freeze.

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     (11) A consumer reporting agency may not suggest or otherwise state or imply to a third

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party that the consumer's security freeze reflects a negative credit score, history, report, or rating.

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     (12) The provisions of this section do not apply to the use of a consumer credit report by

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any of the following:

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     (i) A person, or the person's subsidiary, affiliate, agent, or assignee with which the

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consumer has, or prior to assignment, had an account, contract, or debtor-creditor relationship for

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the purposes of reviewing the account or collecting the financial obligation owing for the account,

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contract, or debt;

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     (ii) A subsidiary, affiliate, agent, assignee, or prospective assignee of a person to whom

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access has been granted under subsection (a)(4) of this section for purposes of facilitating the

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extension of credit or other permissible use;

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     (iii) Any person acting pursuant to a court order, warrant, or subpoena;

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     (iv) A state or local agency that administers a program for establishing and enforcing

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child support obligations;

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     (v) The department of health or its agents or assigns acting to investigate fraud;

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     (vi) The attorney general or its agents or assigns acting to investigate fraud;

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     (vii) The division of taxation or its agents or assigns acting to investigate or collect

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delinquent taxes or unpaid court orders or to fulfill any of its other statutory responsibilities;

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     (viii) The use of a credit report by a person for purposes of prescreening as defined by the

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federal Fair Credit Reporting Act 15 U.S.C. ยง 1681 et. seq.;

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     (ix) Any person or entity administering a credit file monitoring subscription service to

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which the consumer has subscribed;

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     (x) Any person or entity for the purpose of providing a consumer with a copy of his or

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her credit report upon the consumer's request; and

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     (xi) Any person or entity for use in setting or adjusting a rate, adjusting a claim, or

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underwriting for insurance purposes.

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     (13) A consumer may be charged a fee of no more than ten dollars ($10.00) for any

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security freeze services, including, but not limited to, the placement, temporary lifting, and

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permanent removal of a security freeze. The consumer may not be charged for a one-time reissue

 

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of a new personal identification number; provided, however, the consumer may be charged not

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more than five dollars ($5.00) for subsequent instances of loss of the personal identification

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number. However, a consumer reporting agency may not charge any fee to a victim of identity

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theft who has submitted a copy of an incident report from, or a complaint to, a law enforcement

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agency or to a consumer who is of sixty-five (65) years of age or older.

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     (b) Entities not required to place a security freeze.

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     The following entities are not required to place a security freeze on a credit report:

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     (1) A consumer reporting agency that acts only as a reseller of credit information by

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assembling and merging information contained in the database of another consumer reporting

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agency or multiple consumer credit reporting agencies and does not maintain a permanent data

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base of credit information from which new consumer credit report are produced. However, a

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consumer reporting agency acting as a reseller shall honor any security freeze placed on a

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consumer credit report by another consumer reporting agency.

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     (2) A check services or fraud prevention services company that issues reports on

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incidents of fraud or authorizations for the purpose of approving or processing negotiable

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instruments, electronic funds transfers, or similar methods of payments.

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     (3) A deposit account information service company, that issues reports regarding account

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closures due to fraud, substantial overdrafts, ATM abuse, or similar negative information

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regarding a consumer, to inquiring banks or other financial institutions for use only in reviewing a

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consumer request for a deposit account at the inquiring bank or financial institution.

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     (4) Any database or file that consists of any information adverse to the interests of the

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consumer, including, but not limited to, criminal record information; personal loss history

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information; information used for fraud prevention or detection; tenant screening; and

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employment screening.

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     SECTION 2. This act shall take effect upon passage.

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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

***

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     This act would provide that a credit reporting agency may not charge a consumer any fee

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in connection with the placement, temporary lifting or permanent removal of a credit security

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freeze.

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     This act would take effect upon passage.

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