102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0586

 

Introduced 2/8/2021, by Rep. Janet Yang Rohr

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 505/2MM

    Amends the Consumer Fraud and Deceptive Business Practices Act. Permits a minor's parent or guardian to request that a security freeze be placed on the minor's credit file. Requires the security freeze request to be in writing and include (i) certain information about the parent or guardian making the request and (ii) certain information on the minor who is the subject of the security freeze request. Provides that a security freeze on a credit file for a minor may not be temporarily lifted. Defines "credit file".


LRB102 03845 KTG 13859 b

 

 

A BILL FOR

 

HB0586LRB102 03845 KTG 13859 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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
9freeze on credit reports.
10    (a) A credit card issuer who mails an offer or
11solicitation to apply for a credit card and who receives a
12completed application in response to the offer or solicitation
13which lists an address that is not substantially the same as
14the address on the offer or solicitation may not issue a credit
15card based on that application until reasonable steps have
16been taken to verify the applicant's change of address.
17    (b) Any person who uses a consumer credit report in
18connection with the approval of credit based on the
19application for an extension of credit, and who has received
20notification of a police report filed with a consumer
21reporting agency that the applicant has been a victim of
22financial identity theft, as defined in Section 16-30 or
2316G-15 of the Criminal Code of 1961 or the Criminal Code of

 

 

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12012, may not lend money or extend credit without taking
2reasonable steps to verify the consumer's identity and confirm
3that the application for an extension of credit is not the
4result of financial identity theft.
5    (c) A consumer may request that a security freeze be
6placed on his or her credit report by sending a request in
7writing by certified mail or by at least one of telephone or
8electronic means to a consumer reporting agency at an address
9or telephone or electronic location designated by the consumer
10reporting agency to receive such requests.
11    The following persons may request that a security freeze
12be placed on the credit report of a person with a disability:
13        (1) a guardian of the person with a disability who is
14    the subject of the request, appointed under Article XIa of
15    the Probate Act of 1975; and
16        (2) an agent of the person with a disability who is the
17    subject of the request, under a written durable power of
18    attorney that complies with the Illinois Power of Attorney
19    Act.
20    The following persons may request that a security freeze
21be placed on the credit report of a minor:
22        (1) a guardian of the minor who is the subject of the
23    request, appointed under Article XI of the Probate Act of
24    1975;
25        (2) a parent of the minor who is the subject of the
26    request; and

 

 

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

 

 

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1by the consumer reporting agency, request that the freeze be
2temporarily lifted, and provide the following:
3        (1) proper identification;
4        (2) the unique personal identification number or
5    password or similar device provided by the consumer
6    reporting agency; and
7        (3) the proper information regarding the third party
8    or time period for which the report shall be available to
9    users of the credit report.
10    A security freeze for a minor may not be temporarily
11lifted. This Section does not require a consumer reporting
12agency to provide to a minor or a parent or guardian of a minor
13on behalf of the minor a unique personal identification
14number, password, or similar device provided by the consumer
15reporting agency for the minor, or parent or guardian of the
16minor, to use to authorize the consumer reporting agency to
17release information from a minor.
18    (f-5) The following persons may request that a security
19freeze be placed on the credit file of a minor:
20        (1) a parent of the minor who is the subject of the
21    request;
22        (2) a guardian, appointed under Article XI of the
23    Probate Act of 1975, of the minor who is the subject of the
24    request; and
25        (3) a guardian, appointed under the Juvenile Court Act
26    of 1987, of a minor under the age of 18 who is the subject

 

 

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1    of the request or, with a court order authorizing the
2    guardian's consent power, of a youth who is the subject of
3    the request who has attained the age of 18, but who is
4    under the age of 21.
5    (f-10) A request under subsection (f-5) must be in writing
6and must contain:
7        (1) The following information with respect to the
8    parent or guardian:
9            (A) complete name, including any suffix;
10            (B) a complete address;
11            (C) a copy of the person's social security card or
12        a certified or official copy of the person's birth
13        certificate; and
14            (D) a copy of the person's driver's license,
15        identification card issued by the Secretary of State
16        or any other government-issued identification, or a
17        copy of a utility bill that shows name and home
18        address.
19        (2) The following information with respect to the
20    protected consumer or minor who is the subject of the
21    freeze:
22            (A) complete name, including any suffix;
23            (B) a complete address;
24            (C) a copy of a social security card;
25            (D) for a minor, a certified or official copy of
26        the minor's birth certificate; and

 

 

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1            (E) for a person under guardianship or power of
2        attorney, an order issued by a court of law, a lawfully
3        executed and valid power of attorney, or a written,
4        signed, and notarized statement that expressly
5        describes the authority of the person making the
6        request to act on behalf of the protected consumer.
7    A security freeze on a credit file for a minor may not be
8temporarily lifted.
9    (g) A consumer reporting agency shall develop a contact
10method to receive and process a request from a consumer to
11temporarily lift a freeze on a credit report pursuant to
12subsection (f) in an expedited manner.
13    A contact method under this subsection shall include: (i)
14a postal address; and (ii) an electronic contact method chosen
15by the consumer reporting agency, which may include the use of
16telephone, fax, Internet, or other electronic means.
17    (h) A consumer reporting agency that receives a request
18from a consumer to temporarily lift a freeze on a credit report
19pursuant to subsection (f), shall comply with the request no
20later than 3 business days after receiving the request.
21    (i) A consumer reporting agency shall remove or
22temporarily lift a freeze placed on a consumer's credit report
23only in the following cases:
24        (1) upon consumer request, pursuant to subsection (f)
25    or subsection (l) of this Section; or
26        (2) if the consumer's credit report was frozen due to

 

 

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1    a material misrepresentation of fact by the consumer.
2    If a consumer reporting agency intends to remove a freeze
3upon a consumer's credit report pursuant to this subsection,
4the consumer reporting agency shall notify the consumer in
5writing prior to removing the freeze on the consumer's credit
6report.
7    (j) If a third party requests access to a credit report on
8which a security freeze is in effect, and this request is in
9connection with an application for credit or any other use,
10and the consumer does not allow his or her credit report to be
11accessed for that specific party or period of time, the third
12party may treat the application as incomplete.
13    (k) If a consumer requests a security freeze, the credit
14reporting agency shall disclose to the consumer the process of
15placing and temporarily lifting a security freeze, and the
16process for allowing access to information from the consumer's
17credit report for a specific party or period of time while the
18freeze is in place.
19    (l) A security freeze shall remain in place until the
20consumer or person authorized under subsection (c) to act on
21behalf of the minor or person with a disability who is the
22subject of the security freeze requests, using a point of
23contact designated by the consumer reporting agency, that the
24security freeze be removed. A credit reporting agency shall
25remove a security freeze within 3 business days of receiving a
26request for removal from the consumer, who provides:

 

 

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1        (1) proper identification; and
2        (2) the unique personal identification number or
3    password or similar device provided by the consumer
4    reporting agency.
5    (m) A consumer reporting agency shall require proper
6identification of the person making a request to place or
7remove a security freeze and may require proper identification
8and proper authority from the person making the request to
9place or remove a freeze on behalf of the person with a
10disability or minor.
11    (n) The provisions of subsections (c) through (m) of this
12Section do not apply to the use of a consumer credit report by
13any of the following:
14        (1) A person or entity, or a subsidiary, affiliate, or
15    agent of that person or entity, or an assignee of a
16    financial obligation owing by the consumer to that person
17    or entity, or a prospective assignee of a financial
18    obligation owing by the consumer to that person or entity
19    in conjunction with the proposed purchase of the financial
20    obligation, with which the consumer has or had prior to
21    assignment an account or contract, including a demand
22    deposit account, or to whom the consumer issued a
23    negotiable instrument, for the purposes of reviewing the
24    account or collecting the financial obligation owing for
25    the account, contract, or negotiable instrument. For
26    purposes of this subsection, "reviewing the account"

 

 

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1    includes activities related to account maintenance,
2    monitoring, credit line increases, and account upgrades
3    and enhancements.
4        (2) A subsidiary, affiliate, agent, assignee, or
5    prospective assignee of a person to whom access has been
6    granted under subsection (f) of this Section for purposes
7    of facilitating the extension of credit or other
8    permissible use.
9        (3) Any state or local agency, law enforcement agency,
10    trial court, or private collection agency acting pursuant
11    to a court order, warrant, or subpoena.
12        (4) A child support agency acting pursuant to Title
13    IV-D of the Social Security Act.
14        (5) The State or its agents or assigns acting to
15    investigate fraud.
16        (6) The Department of Revenue or its agents or assigns
17    acting to investigate or collect delinquent taxes or
18    unpaid court orders or to fulfill any of its other
19    statutory responsibilities.
20        (7) The use of credit information for the purposes of
21    prescreening as provided for by the federal Fair Credit
22    Reporting Act.
23        (8) Any person or entity administering a credit file
24    monitoring subscription or similar service to which the
25    consumer has subscribed.
26        (9) Any person or entity for the purpose of providing

 

 

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1    a consumer with a copy of his or her credit report or score
2    upon the consumer's request.
3        (10) Any person using the information in connection
4    with the underwriting of insurance.
5    (n-5) A consumer reporting agency may not impose a charge
6on a consumer for placing a freeze, removing a freeze, or
7temporarily lifting a freeze.
8    (o) If a security freeze is in place, a consumer reporting
9agency shall not change any of the following official
10information in a credit report without sending a written
11confirmation of the change to the consumer within 30 days of
12the change being posted to the consumer's file: (i) name, (ii)
13date of birth, (iii) Social Security number, and (iv) address.
14Written confirmation is not required for technical
15modifications of a consumer's official information, including
16name and street abbreviations, complete spellings, or
17transposition of numbers or letters. In the case of an address
18change, the written confirmation shall be sent to both the new
19address and to the former address.
20    (p) The following entities are not required to place a
21security freeze in a consumer report, however, pursuant to
22paragraph (3) of this subsection, a consumer reporting agency
23acting as a reseller shall honor any security freeze placed on
24a consumer credit report by another consumer reporting agency:
25        (1) A check services or fraud prevention services
26    company, which issues reports on incidents of fraud or

 

 

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1    authorizations for the purpose of approving or processing
2    negotiable instruments, electronic funds transfers, or
3    similar methods of payment.
4        (2) A deposit account information service company,
5    which issues reports regarding account closures due to
6    fraud, substantial overdrafts, ATM abuse, or similar
7    negative information regarding a consumer to inquiring
8    banks or other financial institutions for use only in
9    reviewing a consumer request for a deposit account at the
10    inquiring bank or financial institution.
11        (3) A consumer reporting agency that:
12            (A) acts only to resell credit information by
13        assembling and merging information contained in a
14        database of one or more consumer reporting agencies;
15        and
16            (B) does not maintain a permanent database of
17        credit information from which new credit reports are
18        produced.
19    (q) For purposes of this Section:
20    "Credit file" has the same meaning as provided for "file"
21in 15 U.S.C. 1681a(g).
22    "Credit report" has the same meaning as "consumer report",
23as ascribed to it in 15 U.S.C. Sec. 1681a(d).
24    "Consumer reporting agency" has the meaning ascribed to it
25in 15 U.S.C. Sec. 1681a(f).
26    "Security freeze" means a notice placed in a consumer's

 

 

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1credit report, at the request of the consumer and subject to
2certain exceptions, that prohibits the consumer reporting
3agency from releasing the consumer's credit report or score
4relating to an extension of credit, without the express
5authorization of the consumer.
6    "Extension of credit" does not include an increase in an
7existing open-end credit plan, as defined in Regulation Z of
8the Federal Reserve System (12 C.F.R. 226.2), or any change to
9or review of an existing credit account.
10    "Proper authority" means documentation that shows that a
11parent, guardian, or agent has authority to act on behalf of a
12minor or person with a disability. "Proper authority" includes
13(1) an order issued by a court of law that shows that a
14guardian has authority to act on behalf of a minor or person
15with a disability, (2) a written, notarized statement signed
16by a parent that expressly describes the authority of the
17parent to act on behalf of the minor, or (3) a durable power of
18attorney that complies with the Illinois Power of Attorney
19Act.
20    "Proper identification" means information generally deemed
21sufficient to identify a person. Only if the consumer is
22unable to reasonably identify himself or herself with the
23information described above, may a consumer reporting agency
24require additional information concerning the consumer's
25employment and personal or family history in order to verify
26his or her identity.

 

 

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1    (r) Any person who violates this Section commits an
2unlawful practice within the meaning of this Act.
3(Source: P.A. 99-143, eff. 7-27-15; 99-373, eff. 1-1-16;
499-642, eff. 7-28-16; 100-589, eff. 6-8-18.)