Bill Text: CA AB1742 | 2017-2018 | Regular Session | Amended
Bill Title: Consumer credit reporting agencies: security freeze requests.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2018-05-24 - Referred to Com. on JUD. [AB1742 Detail]
Download: California-2017-AB1742-Amended.html
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Amended
IN
Assembly
May 03, 2018 |
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Amended
IN
Assembly
April 11, 2018 |
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Amended
IN
Assembly
March 07, 2018 |
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Assembly Bill | No. 1742 |
| Introduced by Assembly Member Quirk |
January 03, 2018 |
An act to amend Section 1785.11.2 of the Civil Code, relating to consumer credit reporting agencies.
LEGISLATIVE COUNSEL'S DIGEST
AB 1742, as amended, Quirk.
Consumer credit reporting agencies: security freeze requests.
The Consumer Credit Reporting Agencies Act authorizes a consumer to place a security freeze on his or her credit report by making a request in writing by mail to a consumer credit reporting agency. That act requires a consumer credit reporting agency to place the security freeze on the consumer’s credit report no later than 3 business days after receiving the consumer’s request and to send a written confirmation of the security freeze to the consumer within 10 business days. The act also generally requires a consumer credit reporting agency, upon consumer request, to temporarily lift or remove a freeze, subject to receiving proper identification, and satisfying other conditions.
This bill would permit a consumer to request a security freeze, a temporary lift of a security freeze, and removal of a security freeze electronically. The bill would
require a consumer credit reporting agency that receives such an electronic request to comply with the request not later than 15 minutes after receiving the request. agency, not later than 15 minutes after authenticating a request that was received electronically, and in no event later than 24 hours after receiving a request electronically from a consumer, to place a security freeze on the consumer’s credit report and offer to submit a security freeze request on the consumer’s behalf to all consumer credit reporting agencies, as specified. The bill would also require a consumer credit reporting agency that receives a security freeze request, a request for temporary lift of a freeze,
freeze or a request for removal of a freeze, within 3 business days after receipt of the request by mail, or within 15 minutes after receipt of the request electronically, to comply with the request and offer to submit that request on the consumer’s behalf to all consumer credit reporting agencies that compile and maintain files on consumers on a nationwide basis. The bill would require the consumer credit reporting agency, if the consumer accepts the offer, to submit the request to the consumer credit reporting agencies within specified periods of time, subject to receipt of proper identification, as specified. The bill would require a consumer reporting agency that receives a request on the consumer’s behalf from another agency to comply with the request within 15 minutes.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 1785.11.2 of the Civil Code is amended to read:1785.11.2.
(a) A consumer may elect to place a security freeze on his or her credit report by making a request in writing by mail or electronically to a consumer credit reporting agency. “Security freeze” means a notice placed in a consumer’s credit report, at the request of the consumer, and subject to certain exceptions, that prohibits the consumer credit reporting agency from releasing the consumer’s credit report or any information from it without the express authorization of the consumer. If a security freeze is in place, information from a consumer’s credit report may not be released to a third party without prior express authorization from the consumer. This subdivision does not prevent a consumer credit reporting agency from advising a third party that a security freeze is in effect with respect to the consumer’s credit report.(b) (1) Except as provided in paragraph (2), not later than three business days after receiving a written request by mail from a consumer, a consumer credit reporting agency shall do both of the following:
(A) Place a security freeze on the consumer’s credit report.
(B) Offer to submit a security freeze request on the consumer’s behalf to all consumer credit reporting agencies that compile and maintain files on consumers on a nationwide basis. If the consumer accepts, the consumer credit reporting agency shall submit the request to those consumer credit reporting agencies within three business days of receipt if the
consumer’s acceptance is received by mail, and within 15 minutes of receipt if the consumer’s acceptance is received electronically, subject to receipt of proper identification, as defined in subdivision (c) of Section 1785.15. Within 15 minutes of receiving the request from a consumer credit reporting agency on the consumer’s behalf, a consumer credit reporting agency shall comply with the request.
(2) Notwithstanding paragraph (1), not later than 15 minutes after receiving authenticating a request that was received electronically from a consumer,
and in no event later than 24 hours after receiving a request electronically from a consumer, a consumer credit reporting agency shall do both of the following:
(A) Place a security freeze on the consumer’s credit report.
(B) Offer to submit a security freeze request on the consumer’s behalf to all consumer credit reporting agencies that compile and maintain files on consumers on a nationwide basis. If the consumer accepts, the consumer credit reporting agency shall submit the request to those consumer credit reporting agencies within 15 minutes of receipt of the consumer’s acceptance, subject to receipt of proper identification, as defined in subdivision (c) of
Section 1785.15. Within 15 minutes of receiving the request from a consumer credit reporting agency on the consumer’s behalf, a consumer credit reporting agency shall comply with the request.
(c) The consumer credit reporting agency shall send a written confirmation of the security freeze to the consumer within 10 business days and shall provide the consumer with a unique personal identification number or password to be used by the consumer when providing authorization for the release of his or her credit for a specific party or period of time.
(d) (1) If the consumer wishes to allow his or her credit report to be accessed for a specific party or period of time while a freeze is in place, he or she shall contact the consumer credit reporting agency,
request that the freeze be temporarily lifted, and provide the following:
(A) Proper identification, as defined in subdivision (c) of Section 1785.15.
(B) The unique personal identification number or password provided by the credit reporting agency pursuant to subdivision (c).
(C) The proper information regarding the third party who is to receive the credit report or the time period for which the report shall be available to users of the credit report.
(2) Not later than three business days after receiving a written request by mail from a consumer for a temporary lift of a security freeze, and not later than 15 minutes after receiving such a request
electronically, the consumer credit reporting agency shall offer to submit that request on the consumer’s behalf to all consumer credit reporting agencies that compile and maintain files on consumers on a nationwide basis. If the consumer accepts, the consumer credit reporting agency shall submit the request to those consumer credit reporting agencies within three business days of receipt if the consumer’s acceptance is received by mail, and within 15 minutes of receipt if the consumer’s acceptance is received electronically, subject to receipt of the information specified in subparagraphs (A) to (C), inclusive, of paragraph (1). Within 15 minutes of receiving the request from a consumer credit reporting agency on the consumer’s behalf, a consumer credit reporting agency shall comply with the request.
(e) (1) Except as provided in paragraph (2), a consumer credit reporting agency that receives a written request from a consumer to temporarily lift a freeze on a credit report pursuant to subdivision (d) shall comply with the request no later than three business days after receiving the request.
(2) Notwithstanding paragraph (1), a consumer credit reporting agency that receives a request from a consumer electronically to temporarily lift a freeze on a credit report pursuant to subdivision (d) shall comply with the request not later than 15 minutes after receiving the request.
(f) A consumer credit reporting agency may develop procedures involving the use of telephone, fax, the Internet, or other electronic media to receive and process a request in an expedited manner.
(g) A consumer credit reporting agency shall remove or temporarily lift a freeze placed on a consumer’s credit report only in the following cases:
(1) Upon consumer request, pursuant to subdivision (d) or (j).
(2) If the consumer’s credit report was frozen due to a material misrepresentation of fact by the consumer. If a consumer credit reporting agency intends to remove a freeze upon a consumer’s credit report pursuant to this paragraph, the consumer credit reporting agency shall notify the consumer in writing prior to removing the freeze on the consumer’s credit report.
(3) Upon request from a consumer credit reporting agency made on behalf of a consumer
pursuant to subdivision (d) or (j).
(h) A third party who requests access to a consumer credit report in connection with an application for credit or any other use may treat the application as incomplete if a security freeze is in effect and the consumer does not allow his or her credit report to be accessed for that specific party or period of time.
(i) If a consumer requests a security freeze, the consumer credit reporting agency shall disclose the process of placing and temporarily lifting a freeze and the process for allowing access to information from the consumer’s credit report for a specific party or period of time while the freeze is in place.
(j) (1) A security freeze shall remain in place until
the consumer requests that the security freeze be removed. A consumer credit reporting agency shall remove a security freeze within three
business days of receiving a written request by mail for removal from the consumer if the consumer provides both of the following:
(A) Proper identification, as defined in subdivision (c) of Section 1785.15.
(B) The unique personal identification number or password provided by the credit reporting agency pursuant to subdivision (c).
(2) Not later than three business days after receiving a written consumer request by mail to remove a security freeze, and not later than 15 minutes after receiving such a request electronically, the consumer credit reporting agency shall offer to submit that request on the consumer’s behalf to all consumer credit reporting agencies that compile and maintain files on
consumers on a nationwide basis. If the consumer accepts, the consumer credit reporting agency shall submit the request to those consumer credit reporting agencies within three business days of receipt if the consumer’s acceptance is received by mail, and within 15 minutes of receipt if the consumer’s acceptance is received electronically, subject to receipt of proper identification, as specified in subparagraphs (A) and (B) of paragraph (1). Within 15 minutes of receiving the request from a consumer credit reporting agency on the consumer’s behalf, a consumer credit reporting agency shall comply with the request.
(3) Notwithstanding paragraphs (1) and (2), a consumer credit reporting agency that receives a request electronically from a consumer to remove a security freeze shall comply with the request not later than 15 minutes after
receiving the request, subject to the consumer providing the identification set forth in subparagraphs (A) and (B) of paragraph (1).
(k) A consumer credit reporting agency shall require proper
identification, as defined in subdivision (c) of Section 1785.15, of the person making a request to place or remove a security freeze.
(l) The provisions of this section do not apply to the use of a consumer credit report by any of the following:
(1) (A) (i) A person or entity with which the consumer has or had, prior to any assignment, an account or contract, including a demand deposit account, or to which the consumer issued a negotiable instrument, for the purpose of reviewing the account or collecting the financial obligation owing for the account, contract, or negotiable instrument.
(ii) A subsidiary, affiliate, or agent of a person or entity described in clause
(i), an assignee of a financial obligation owing by the consumer to such a person or entity, or a prospective assignee of a financial obligation owing by the consumer to such a person or entity in conjunction with the proposed purchase of the financial obligation, for the purpose of reviewing the account or collecting the financial obligation owing for the account, contract, or negotiable instrument.
(B) For purposes of this paragraph, “reviewing the account” includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.
(2) A subsidiary, affiliate, agent, assignee, or prospective assignee of a person to whom access has been granted under subdivision (d) for purposes of facilitating the extension of credit or other
permissible use.
(3) Any state or local agency, law enforcement agency, trial court, or private collection agency acting pursuant to a court order, warrant, or subpoena.
(4) A child support agency acting pursuant to Chapter 2 (commencing with Section 17400) of Division 17 of the Family Code or Title IV-D of the Social Security Act (42 U.S.C. Sec. 651 et seq.).
(5) The State Department of Health Care Services or its agents or assigns acting to investigate Medi-Cal fraud.
(6) The Franchise Tax Board or its agents or assigns acting to investigate or collect delinquent taxes or unpaid court orders or to fulfill any of its other statutory responsibilities.
(7) The use of credit information for the purposes of prescreening as provided for by the federal Fair Credit Reporting Act.
(8) Any person or entity administering a credit file monitoring subscription service to which the consumer has subscribed.
(9) Any person or entity for the purpose of providing a consumer with a copy of his or her credit report upon the consumer’s request.
(m) (1) Except as provided in paragraph (2), this title does not prevent a consumer credit reporting agency from charging a fee of no more than ten dollars ($10) to a consumer for the placement of each freeze, the removal of the freeze, the temporary lift of the freeze
for a period of time, or the temporary lift of the freeze for a specific party, regarding access to a consumer credit report, except that a consumer credit reporting agency may not charge a fee to a victim of identity theft who has submitted a valid police report or valid Department of Motor Vehicles investigative report that alleges a violation of Section 530.5 of the Penal Code.
(2) With respect to a consumer who is 65 years of age or older and who has provided identification confirming his or her age, a consumer credit reporting agency shall not charge a fee for the placement of an initial security freeze, but may charge a fee not to exceed five dollars ($5) for the removal of the freeze, the temporary lift of the freeze for a period of time, the temporary lift of the freeze for a specific party, or replacing the freeze.
(n) Regardless of the existence of a security freeze, a consumer credit reporting agency may disclose public record information lawfully obtained by, or for, the consumer credit reporting agency from an open public record to the extent otherwise permitted by law. This subdivision does not prohibit a consumer credit reporting agency from electing to apply a valid security freeze to the entire contents of a credit report.
