Bill Text: HI SB2769 | 2018 | Regular Session | Introduced
Bill Title: Relating To Consumer Credit Reporting Agencies.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-31 - The committee on CPH deferred the measure. [SB2769 Detail]
Download: Hawaii-2018-SB2769-Introduced.html
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THE SENATE |
S.B. NO. |
2769 |
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TWENTY-NINTH LEGISLATURE, 2018 |
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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 being charged considering recent events involving security breaches of databases containing 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 as follows:
"(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,
website, or electronic mail address 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;
(3) Secure website;
or
(4) Secure electronic
mail connection.
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 as follows:
"(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]
upon the consumer's request[; or
(2) When the consumer's
credit report was frozen due to a
material misrepresentation of fact by the consumer].
SECTION 4. Section 489P-3.5, Hawaii Revised Statutes, is amended as follows:
(1) By amending subsection (a) to read as follows:
"(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 as follows:
"(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 as follows:
"(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 upon its approval.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
Consumer Credit Reporting Agencies; Security Freeze; Credit Report; Protected Consumers; Fee
Description:
Eliminates the fee charged by a consumer 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.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
