Illinois General Assembly - Full Text of HB4095
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Full Text of HB4095  100th General Assembly




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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 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.
17    (b) Any person who uses a consumer credit report in
18connection with the approval of credit based on the application
19for an extension of credit, and who has received notification
20of a police report filed with a consumer reporting agency that
21the applicant has been a victim of financial identity theft, as
22defined in Section 16-30 or 16G-15 of the Criminal Code of 1961
23or the Criminal Code of 2012, may not lend money or extend



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



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1    of 1987 for a minor under the age of 18 who is the subject
2    of the request or, with a court order authorizing the
3    guardian consent power, for a youth who is the subject of
4    the request who has attained the age of 18, but who is
5    under the age of 21.
6    This subsection (c) does not prevent a consumer reporting
7agency from advising a third party that a security freeze is in
8effect with respect to the consumer's credit report.
9    (d) A consumer reporting agency shall place a security
10freeze on a consumer's credit report no later than 5 business
11days after receiving a written request from the consumer:
12        (1) a written request described in subsection (c); and
13        (2) proper identification. ; and
14        (3) payment of a fee, if applicable.
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 than
20the consumer's Social Security number, to be used by the
21consumer when providing authorization for the release of his or
22her 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 or
8    time period for which the report shall be available to
9    users of the credit report. ; and
10        (4) A fee, if applicable.
11    A security freeze for a minor may not be temporarily
12lifted. This Section does not require a consumer reporting
13agency to provide to a minor or a parent or guardian of a minor
14on behalf of the minor a unique personal identification number,
15password, or similar device provided by the consumer reporting
16agency for the minor, or parent or guardian of the minor, to
17use to authorize the consumer reporting agency to release
18information from a minor.
19    (g) A consumer reporting agency shall develop a contact
20method to receive and process a request from a consumer to
21temporarily lift a freeze on a credit report pursuant to
22subsection (f) in an expedited manner.
23    A contact method under this subsection shall include: (i) a
24postal address; and (ii) an electronic contact method chosen by
25the consumer reporting agency, which may include the use of
26telephone, fax, Internet, or other electronic means.



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1    (h) A consumer reporting agency that receives a request
2from a consumer to temporarily lift a freeze on a credit report
3pursuant to subsection (f), shall comply with the request no
4later than 3 business days after receiving the request.
5    (i) A consumer reporting agency shall remove or temporarily
6lift a freeze placed on a consumer's credit report only in the
7following cases:
8        (1) upon consumer request, pursuant to subsection (f)
9    or subsection (l) of this Section; or
10        (2) if the consumer's credit report was frozen due to a
11    material misrepresentation of fact by the consumer.
12    If a consumer reporting agency intends to remove a freeze
13upon a consumer's credit report pursuant to this subsection,
14the consumer reporting agency shall notify the consumer in
15writing prior to removing the freeze on the consumer's credit
17    (j) If a third party requests access to a credit report on
18which a security freeze is in effect, and this request is in
19connection with an application for credit or any other use, and
20the consumer does not allow his or her credit report to be
21accessed for that specific party or period of time, the third
22party may treat the application as incomplete.
23    (k) If a consumer requests a security freeze, the credit
24reporting agency shall disclose to the consumer the process of
25placing and temporarily lifting a security freeze, and the
26process for allowing access to information from the consumer's



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1credit report for a specific party or period of time while the
2freeze is in place.
3    (l) A security freeze shall remain in place until the
4consumer or person authorized under subsection (c) to act on
5behalf of the minor or person with a disability who is the
6subject of the security freeze requests, using a point of
7contact designated by the consumer reporting agency, that the
8security freeze be removed. A credit reporting agency shall
9remove a security freeze within 3 business days of receiving a
10request for removal from the consumer, who provides:
11        (1) proper identification; and
12        (2) the unique personal identification number or
13    password or similar device provided by the consumer
14    reporting agency. ; and
15        (3) A fee, if applicable.
16    (m) A consumer reporting agency shall require proper
17identification of the person making a request to place or
18remove a security freeze and may require proper identification
19and proper authority from the person making the request to
20place or remove a freeze on behalf of the person with a
21disability or minor.
22    (n) The provisions of subsections (c) through (m) of this
23Section do not apply to the use of a consumer credit report by
24any of the following:
25        (1) A person or entity, or a subsidiary, affiliate, or
26    agent of that person or entity, or an assignee of a



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1    financial obligation owing by the consumer to that person
2    or entity, or a prospective assignee of a financial
3    obligation owing by the consumer to that person or entity
4    in conjunction with the proposed purchase of the financial
5    obligation, with which the consumer has or had prior to
6    assignment an account or contract, including a demand
7    deposit account, or to whom the consumer issued a
8    negotiable instrument, for the purposes of reviewing the
9    account or collecting the financial obligation owing for
10    the account, contract, or negotiable instrument. For
11    purposes of this subsection, "reviewing the account"
12    includes activities related to account maintenance,
13    monitoring, credit line increases, and account upgrades
14    and enhancements.
15        (2) A subsidiary, affiliate, agent, assignee, or
16    prospective assignee of a person to whom access has been
17    granted under subsection (f) of this Section for purposes
18    of facilitating the extension of credit or other
19    permissible use.
20        (3) Any state or local agency, law enforcement agency,
21    trial court, or private collection agency acting pursuant
22    to a court order, warrant, or subpoena.
23        (4) A child support agency acting pursuant to Title
24    IV-D of the Social Security Act.
25        (5) The State or its agents or assigns acting to
26    investigate fraud.



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1        (6) The Department of Revenue or its agents or assigns
2    acting to investigate or collect delinquent taxes or unpaid
3    court orders or to fulfill any of its other statutory
4    responsibilities.
5        (7) The use of credit information for the purposes of
6    prescreening as provided for by the federal Fair Credit
7    Reporting Act.
8        (8) Any person or entity administering a credit file
9    monitoring subscription or similar service to which the
10    consumer has subscribed.
11        (9) Any person or entity for the purpose of providing a
12    consumer with a copy of his or her credit report or score
13    upon the consumer's request.
14        (10) Any person using the information in connection
15    with the underwriting of insurance.
16    (n-5) A consumer reporting agency may not impose a charge
17on a consumer for placing a freeze, removing a freeze, or
18temporarily lifting a freeze. This Section does not prevent a
19consumer reporting agency from charging a fee of no more than
20$10 to a consumer for each freeze, removal, or temporary lift
21of the freeze, regarding access to a consumer credit report,
22except that a consumer reporting agency may not charge a fee
23to: (i) a consumer 65 years of age or over for placement and
24removal of a freeze; (ii) a victim of identity theft who has
25submitted to the consumer reporting agency a valid copy of a
26police report, investigative report, or complaint that the



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1consumer has filed with a law enforcement agency about unlawful
2use of his or her personal information by another person; or
3(iii) an active duty military service member who has submitted
4to the consumer reporting agency a copy of his or her orders
5calling the service member to military service and any orders
6further extending the service member's period of service if
7currently active.
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 report" has the same meaning as "consumer report",
21as ascribed to it in 15 U.S.C. Sec. 1681a(d).
22    "Consumer reporting agency" has the meaning ascribed to it
23in 15 U.S.C. Sec. 1681a(f).
24    "Security freeze" means a notice placed in a consumer's
25credit report, at the request of the consumer and subject to
26certain exceptions, that prohibits the consumer reporting



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



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1commonwealth, or a territory of the United States who has
2entered any full-time training or duty for which the service
3member was ordered to report by the President, the governor of
4a state, commonwealth, or territory of the United States, or
5another appropriate military authority.
6    (r) Any person who violates this Section commits an
7unlawful practice within the meaning of this Act.
8(Source: P.A. 98-486, eff. 1-1-14; 98-756, eff. 7-16-14;
999-143, eff. 7-27-15; 99-373, eff. 1-1-16; 99-642, eff.
11    Section 99. Effective date. This Act takes effect upon
12becoming law.