Rep. Michelle Mussman

Filed: 3/24/2017

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3872

2    AMENDMENT NO. ______. Amend House Bill 3872 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Consumer Fraud and Deceptive Business
5Practices Act is amended by changing Section 2MM as follows:
 
6    (815 ILCS 505/2MM)
7    Sec. 2MM. Verification of accuracy of consumer reporting
8information used to extend consumers credit and security freeze
9on credit reports.
10    (a) A credit card issuer who mails an offer or solicitation
11to apply for a credit card and who receives a completed
12application in response to the offer or solicitation which
13lists an address that is not substantially the same as the
14address on the offer or solicitation may not issue a credit
15card based on that application until reasonable steps have been
16taken to verify the applicant's change of address.

 

 

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1    (b) Any person who uses a consumer credit report in
2connection with the approval of credit based on the application
3for an extension of credit, and who has received notification
4of a police report filed with a consumer reporting agency that
5the applicant has been a victim of financial identity theft, as
6defined in Section 16-30 or 16G-15 of the Criminal Code of 1961
7or the Criminal Code of 2012, may not lend money or extend
8credit without taking reasonable steps to verify the consumer's
9identity and confirm that the application for an extension of
10credit is not the result of financial identity theft.
11    (c) A consumer may request that a security freeze be placed
12on his or her credit report by sending a request in writing by
13certified mail to a consumer reporting agency at an address
14designated by the consumer reporting agency to receive such
15requests.
16    The following persons may request that a security freeze be
17placed on the credit report of a person with a disability:
18        (1) a guardian of the person with a disability who is
19    the subject of the request, appointed under Article XIa of
20    the Probate Act of 1975; and
21        (2) an agent of the person with a disability who is the
22    subject of the request, under a written durable power of
23    attorney that complies with the Illinois Power of Attorney
24    Act.
25    The following persons may request that a security freeze be
26placed on the credit report of a minor:

 

 

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1        (1) a guardian of the minor who is the subject of the
2    request, appointed under Article XI of the Probate Act of
3    1975;
4        (2) a parent of the minor who is the subject of the
5    request; and
6        (3) a guardian appointed under the Juvenile Court Act
7    of 1987 for a minor under the age of 18 who is the subject
8    of the request or, with a court order authorizing the
9    guardian consent power, for a youth who is the subject of
10    the request who has attained the age of 18, but who is
11    under the age of 21.
12    This subsection (c) does not prevent a consumer reporting
13agency from advising a third party that a security freeze is in
14effect with respect to the consumer's credit report.
15    (d) A consumer reporting agency shall place a security
16freeze on a consumer's credit report no later than 5 business
17days after receiving a written request from the consumer:
18        (1) a written request described in subsection (c);
19        (2) proper identification; and
20        (3) payment of a fee, if applicable.
21    (e) Upon placing the security freeze on the consumer's
22credit report, the consumer reporting agency shall send to the
23consumer within 10 business days a written confirmation of the
24placement of the security freeze and a unique personal
25identification number or password or similar device, other than
26the consumer's Social Security number, to be used by the

 

 

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1consumer when providing authorization for the release of his or
2her credit report for a specific party or period of time.
3    (f) If the consumer wishes to allow his or her credit
4report to be accessed for a specific party or period of time
5while a freeze is in place, he or she shall contact the
6consumer reporting agency using a point of contact designated
7by the consumer reporting agency, request that the freeze be
8temporarily lifted, and provide the following:
9        (1) Proper identification;
10        (2) The unique personal identification number or
11    password or similar device provided by the consumer
12    reporting agency;
13        (3) The proper information regarding the third party or
14    time period for which the report shall be available to
15    users of the credit report; and
16        (4) A fee, if applicable.
17    A security freeze for a minor may not be temporarily
18lifted. This Section does not require a consumer reporting
19agency to provide to a minor or a parent or guardian of a minor
20on behalf of the minor a unique personal identification number,
21password, or similar device provided by the consumer reporting
22agency for the minor, or parent or guardian of the minor, to
23use to authorize the consumer reporting agency to release
24information from a minor.
25    (f-5) The following persons may request that a security
26freeze be placed on the credit file of a minor:

 

 

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1        (1) a parent of the minor who is the subject of the
2    request;
3        (2) a guardian, appointed under Article XI of the
4    Probate Act of 1975, of the minor who is the subject of the
5    request; and
6        (3) a guardian appointed under the Juvenile Court Act
7    of 1987 for a minor under the age of 18 who is the subject
8    of the request or, with a court order authorizing the
9    guardian consent power, for a youth who is the subject of
10    the request who has attained the age of 18, but who is
11    under the age of 21.
12    The following persons may request that a security freeze be
13placed on the credit file of a person with a disability:
14        (1) a guardian of the person with a disability who is
15    the subject of the request, appointed under Article XIa of
16    the Probate Act of 1975; and
17        (2) an agent of the person with a disability who is the
18    subject of the request, under a written durable power of
19    attorney that complies with the Illinois Power of Attorney
20    Act.
21    The request must be in writing and must contain:
22        (1) The following information with respect to the
23    parent, guardian, or agent:
24            (A) complete name, including any suffix;
25            (B) a complete address;
26            (C) a copy of the person's social security card or

 

 

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1        a certified or official copy of the person's birth
2        certificate; and
3            (D) a copy of the person's driver's license,
4        identification card issued by the Secretary of State or
5        any other government-issued identification, or a copy
6        of a utility bill that shows name and home address.
7        (2) The following information with respect to the minor
8    or person with a disability who is the subject of the
9    freeze:
10            (A) complete name, including any suffix;
11            (B) a complete address;
12            (C) a copy of a social security card;
13            (D) for a minor, a certified or official copy of
14        the minor's birth certificate; and
15            (E) for a person under guardianship or power of
16        attorney, an order issued by a court of law, a lawfully
17        executed and valid power of attorney, or a written,
18        signed, and notarized statement that expressly
19        describes the authority of the person making the
20        request to act on behalf of the minor or person with a
21        disability.
22    A security freeze on a credit file for a minor or a person
23with a disability may not be temporarily lifted, but may be
24removed.
25    (g) A consumer reporting agency shall develop a contact
26method to receive and process a request from a consumer to

 

 

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1temporarily lift a freeze on a credit report pursuant to
2subsection (f) in an expedited manner.
3    A contact method under this subsection shall include: (i) a
4postal address; and (ii) an electronic contact method chosen by
5the consumer reporting agency, which may include the use of
6telephone, fax, Internet, or other electronic means.
7    (h) A consumer reporting agency that receives a request
8from a consumer to temporarily lift a freeze on a credit report
9pursuant to subsection (f), shall comply with the request no
10later than 3 business days after receiving the request.
11    (i) A consumer reporting agency shall remove or temporarily
12lift a freeze placed on a consumer's credit report or file only
13in the following cases:
14        (1) upon consumer request, pursuant to subsection (f)
15    or subsection (l) of this Section; or
16        (2) if the consumer's credit report or file was frozen
17    due to a material misrepresentation of fact by the
18    consumer.
19    If a consumer reporting agency intends to remove a freeze
20upon a consumer's credit report or file pursuant to this
21subsection, the consumer reporting agency shall notify the
22consumer in writing prior to removing the freeze on the
23consumer's credit report or file.
24    (j) If a third party requests access to a credit report on
25which a security freeze is in effect, and this request is in
26connection with an application for credit or any other use, and

 

 

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1the consumer does not allow his or her credit report to be
2accessed for that specific party or period of time, the third
3party may treat the application as incomplete.
4    (k) If a consumer requests a security freeze, the credit
5reporting agency shall disclose to the consumer the process of
6placing and temporarily lifting a security freeze, and the
7process for allowing access to information from the consumer's
8credit report for a specific party or period of time while the
9freeze is in place.
10    (l) A security freeze shall remain in place until the
11consumer or person authorized under subsection (c) or (f-5) to
12act on behalf of the minor or person with a disability who is
13the subject of the security freeze requests, using a point of
14contact designated by the consumer reporting agency, that the
15security freeze be removed. A credit reporting agency shall
16remove a security freeze within 3 business days of receiving a
17request for removal from the consumer, who provides:
18        (1) Proper identification;
19        (2) The unique personal identification number or
20    password or similar device provided by the consumer
21    reporting agency; and
22        (3) A fee, if applicable.
23    (m) A consumer reporting agency shall require proper
24identification of the person making a request to place or
25remove a security freeze and may require proper identification
26and proper authority from the person making the request to

 

 

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1place or remove a freeze on behalf of the person with a
2disability or minor.
3    (n) The provisions of subsections (c) through (m) of this
4Section do not apply to the use of a consumer credit report by
5any of the following:
6        (1) A person or entity, or a subsidiary, affiliate, or
7    agent of that person or entity, or an assignee of a
8    financial obligation owing by the consumer to that person
9    or entity, or a prospective assignee of a financial
10    obligation owing by the consumer to that person or entity
11    in conjunction with the proposed purchase of the financial
12    obligation, with which the consumer has or had prior to
13    assignment an account or contract, including a demand
14    deposit account, or to whom the consumer issued a
15    negotiable instrument, for the purposes of reviewing the
16    account or collecting the financial obligation owing for
17    the account, contract, or negotiable instrument. For
18    purposes of this subsection, "reviewing the account"
19    includes activities related to account maintenance,
20    monitoring, credit line increases, and account upgrades
21    and enhancements.
22        (2) A subsidiary, affiliate, agent, assignee, or
23    prospective assignee of a person to whom access has been
24    granted under subsection (f) of this Section for purposes
25    of facilitating the extension of credit or other
26    permissible use.

 

 

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1        (3) Any state or local agency, law enforcement agency,
2    trial court, or private collection agency acting pursuant
3    to a court order, warrant, or subpoena.
4        (4) A child support agency acting pursuant to Title
5    IV-D of the Social Security Act.
6        (5) The State or its agents or assigns acting to
7    investigate fraud.
8        (6) The Department of Revenue or its agents or assigns
9    acting to investigate or collect delinquent taxes or unpaid
10    court orders or to fulfill any of its other statutory
11    responsibilities.
12        (7) The use of credit information for the purposes of
13    prescreening as provided for by the federal Fair Credit
14    Reporting Act.
15        (8) Any person or entity administering a credit file
16    monitoring subscription or similar service to which the
17    consumer has subscribed.
18        (9) Any person or entity for the purpose of providing a
19    consumer with a copy of his or her credit report or score
20    upon the consumer's request.
21        (10) Any person using the information in connection
22    with the underwriting of insurance.
23    (n-5) This Section does not prevent a consumer reporting
24agency from charging a fee of no more than $10 to a consumer
25for each freeze, removal, or temporary lift of the freeze,
26regarding access to a consumer credit report or file, except

 

 

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1that a consumer reporting agency may not charge a fee to: (i) a
2consumer 65 years of age or over for placement and removal of a
3freeze; (ii) a victim of identity theft who has submitted to
4the consumer reporting agency a valid copy of a police report,
5investigative report, or complaint that the consumer has filed
6with a law enforcement agency about unlawful use of his or her
7personal information by another person; or (iii) an active duty
8military service member who has submitted to the consumer
9reporting agency a copy of his or her orders calling the
10service member to military service and any orders further
11extending the service member's period of service if currently
12active.
13    (o) If a security freeze is in place, a consumer reporting
14agency shall not change any of the following official
15information in a credit report without sending a written
16confirmation of the change to the consumer within 30 days of
17the change being posted to the consumer's file: (i) name, (ii)
18date of birth, (iii) Social Security number, and (iv) address.
19Written confirmation is not required for technical
20modifications of a consumer's official information, including
21name and street abbreviations, complete spellings, or
22transposition of numbers or letters. In the case of an address
23change, the written confirmation shall be sent to both the new
24address and to the former address.
25    (p) The following entities are not required to place a
26security freeze in a consumer report, however, pursuant to

 

 

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1paragraph (3) of this subsection, a consumer reporting agency
2acting as a reseller shall honor any security freeze placed on
3a consumer credit report or file by another consumer reporting
4agency:
5        (1) A check services or fraud prevention services
6    company, which issues reports on incidents of fraud or
7    authorizations for the purpose of approving or processing
8    negotiable instruments, electronic funds transfers, or
9    similar methods of payment.
10        (2) A deposit account information service company,
11    which issues reports regarding account closures due to
12    fraud, substantial overdrafts, ATM abuse, or similar
13    negative information regarding a consumer to inquiring
14    banks or other financial institutions for use only in
15    reviewing a consumer request for a deposit account at the
16    inquiring bank or financial institution.
17        (3) A consumer reporting agency that:
18            (A) acts only to resell credit information by
19        assembling and merging information contained in a
20        database of one or more consumer reporting agencies;
21        and
22            (B) does not maintain a permanent database of
23        credit information from which new credit reports are
24        produced.
25    (q) For purposes of this Section:
26    "Credit file" has the meaning ascribed to it in 15 U.S.C.

 

 

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11681a(g).
2    "Credit report" has the same meaning as "consumer report",
3as ascribed to it in 15 U.S.C. Sec. 1681a(d).
4    "Consumer reporting agency" has the meaning ascribed to it
5in 15 U.S.C. Sec. 1681a(f).
6    "Security freeze" means a notice placed in a consumer's
7credit report, at the request of the consumer and subject to
8certain exceptions, that prohibits the consumer reporting
9agency from releasing the consumer's credit report or score
10relating to an extension of credit, without the express
11authorization of the consumer.
12    "Extension of credit" does not include an increase in an
13existing open-end credit plan, as defined in Regulation Z of
14the Federal Reserve System (12 C.F.R. 226.2), or any change to
15or review of an existing credit account.
16    "Proper authority" means documentation that shows that a
17parent, guardian, or agent has authority to act on behalf of a
18minor or person with a disability. "Proper authority" includes
19(1) an order issued by a court of law that shows that a
20guardian has authority to act on behalf of a minor or person
21with a disability, (2) a written, notarized statement signed by
22a parent that expressly describes the authority of the parent
23to act on behalf of the minor, or (3) a durable power of
24attorney that complies with the Illinois Power of Attorney Act.
25    "Proper identification" means information generally deemed
26sufficient to identify a person. Only if the consumer is unable

 

 

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1to reasonably identify himself or herself with the information
2described above, may a consumer reporting agency require
3additional information concerning the consumer's employment
4and personal or family history in order to verify his or her
5identity.
6    "Military service member" means a resident of Illinois who
7is a member of any component of the U.S. Armed Forces or the
8National Guard of any state, the District of Columbia, a
9commonwealth, or a territory of the United States who has
10entered any full-time training or duty for which the service
11member was ordered to report by the President, the governor of
12a state, commonwealth, or territory of the United States, or
13another appropriate military authority.
14    (r) Any person who violates this Section commits an
15unlawful practice within the meaning of this Act.
16(Source: P.A. 98-486, eff. 1-1-14; 98-756, eff. 7-16-14;
1799-143, eff. 7-27-15; 99-373, eff. 1-1-16; 99-642, eff.
187-28-16.)".