Bill Text: HI HB2342 | 2018 | Regular Session | Amended
Bill Title: Relating To Consumer Credit Reporting Agencies.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2018-06-06 - Act 022, 06/04/2018 (Gov. Msg. No. 1122). [HB2342 Detail]
Download: Hawaii-2018-HB2342-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2342 |
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TWENTY-NINTH LEGISLATURE, 2018 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to consumer credit reporting agencies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to enhance consumer protections by allowing consumers, protected consumers, and representatives of protected consumers to request consumer reporting agencies to place, remove, or lift a security freeze on their consumer reports without charge because of recent security breaches of databases that contain consumer identifying information.
SECTION 2. Section 489P-2, Hawaii Revised Statutes, is amended to read as follows:
"[[]§489P-2[]]
Definitions. When used in
this chapter, unless the context otherwise requires:
"Consumer credit reporting agency" or "consumer reporting agency" means any person who, for monetary fees or dues or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing credit reports to third parties, but does not include any governmental agency whose records are maintained primarily for law enforcement or licensing purposes.
"Credit report" means any written, oral, or other communication of any credit information by a consumer reporting agency, as defined in the federal Fair Credit Reporting Act, which operates or maintains a database of consumer credit information bearing on a consumer's credit worthiness, credit standing, or credit capacity.
["Identity theft" means
the unauthorized use of another person's identifying information to obtain
credit, goods, services, money, or property.]
"Security freeze" means a
notice placed in a credit report[,] at the request of the consumer [who
is a victim of identity theft.] or the protected consumer's
representative."
SECTION 3. Section 489P-3, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) Any consumer who is a resident of this State
may place a security freeze on the consumer's credit report. A consumer credit reporting agency shall not
charge [a victim of identity theft] a fee for placing, lifting, or
removing a security freeze on a credit report [but may charge any other
consumer a fee not to exceed $5 for each request by the consumer to place,
lift, or remove a security freeze from the consumer's credit report].
A consumer who is a resident of this
State [and has been the victim of identity theft] may place a security
freeze on the consumer's credit report by making a request [in writing by
certified mail] to a consumer credit reporting agency, at an address,
telephone number, or website designated by the agency to receive such requests,
[with a valid copy of a police report, investigative report, or complaint
the consumer has filed with a law enforcement agency about unlawful use of the
consumer's personal information by another person. A consumer who has not been the victim of
identity theft may place a security freeze on the consumer's credit report by
making a request in writing by certified mail to a consumer credit reporting
agency.] by any of the following methods:
(1) First-class mail;
(2) Telephone call;
or
(3) Secure website.
A security freeze shall prohibit the consumer credit reporting agency from releasing the consumer's credit report or any information from it without the express authorization of the consumer. This subsection shall 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."
2.
By amending subsection (g) to read:
"(g) A consumer 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; or
(2) When the consumer's credit report was frozen due to a material misrepresentation of fact by the consumer.
If a consumer reporting agency [intends to remove]
removes a security freeze upon a consumer's credit report
pursuant to this subsection, the consumer reporting agency shall [notify]
send a written confirmation of the removal of the security freeze to the
consumer [in writing prior to] within five business days of removing
the security freeze on the consumer's credit report."
SECTION 4. Section 489P-3.5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) A consumer credit reporting agency shall place a security freeze on a protected consumer's credit report or records if:
(1) The consumer credit reporting agency receives a request from the protected consumer's representative for the placement of the security freeze under this section; and
(2) The protected consumer's representative:
(A) Submits the request to the consumer credit reporting agency at the address or other point of contact specified by the consumer credit reporting agency;
(B) Provides to the
consumer credit reporting agency sufficient proof of identification of the
protected consumer and the protected consumer's representative; and
(C) Provides to the
consumer credit reporting agency sufficient proof of authority to act on behalf
of the protected consumer[; and
(D) Pays
to the consumer credit reporting agency a fee as provided in subsection (h)]."
2. By amending subsection (f) to read:
"(f) If a protected consumer or a protected consumer's representative wishes to remove a security freeze for the protected consumer, the protected consumer or the protected consumer's representative shall:
(1) Submit a request
for the removal of the security freeze to the consumer credit reporting agency
at the address or other point of contact specified by the consumer credit
reporting agency; and
(2) Provide to the consumer credit reporting agency:
(A) In the case of a request by the protected consumer:
(i) Proof that the sufficient proof of authority for the protected consumer's representative to act on behalf of the protected consumer is no longer valid; and
(ii) Sufficient proof of identification of the protected consumer; or
(B) In the case of a request by the representative of a protected consumer:
(i) Sufficient proof of identification of the protected consumer and the representative; and
(ii) Sufficient proof
of authority to act on behalf of the protected consumer[; and
(3) Pay to the
consumer credit reporting agency a fee as provided in subsection (h)]."
3. By amending subsection (h) to read:
"(h) A consumer credit reporting agency [may]
shall not charge a [reasonable] fee[, not to exceed $5, for
each placement or removal of] for placing or removing a security
freeze on a credit report for a protected consumer[; provided that a
consumer credit reporting agency shall not charge a fee under this section if:
(1) The protected
consumer's representative has a valid copy of a police report, investigative
report, or complaint which the protected consumer or the protected consumer's
representative has filed with a law enforcement agency regarding the unlawful
use of the protected consumer's personal information by another person, and
provides a copy of the report to the consumer credit reporting agency; or
(2) A request for
the placement or removal of a security freeze is for a protected consumer who
is under the age of sixteen at the time of the request and the consumer credit
reporting agency has a credit report pertaining to the protected consumer]."
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2050.
Report Title:
Consumer Credit Reporting Agencies; Security Freeze; Credit Report; Protected Consumers; Fees
Description:
Eliminates the fee charged by a consumer credit reporting agency to place, lift, or remove a security freeze requested by a consumer, protected consumer, or a protected consumer's representative. Allows a consumer to request a security freeze at any time. (HB2342 HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
