Iowa-2017-SF2054-Introduced
Senate File 2054 - Introduced
SENATE FILE
BY ZAUN, CHAPMAN,
CHELGREN, SINCLAIR,
GREENE, D. JOHNSON,
DAWSON, SCHNEIDER,
CARLIN, EDLER,
ROZENBOOM, BREITBACH,
COSTELLO, SEGEBART,
KAPUCIAN, and GUTH
A BILL FOR
1 An Act relating to consumer protection modifying provisions
2 applicable to consumer security freezes and including
3 effective date provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 5085XS (3) 87
gh/rn
PAG LIN
1 1 Section 1. Section 714G.2, Code 2018, is amended to read as
1 2 follows:
1 3 714G.2 Security freeze.
1 4 1. A consumer may submit by certified mail to a consumer
1 5 reporting agency a written request for a security freeze to
1 6 a consumer reporting agency by first=class mail, telephone,
1 7 facsimile, secure internet connection, secure electronic mail,
1 8 or other secure electronic contact method. The consumer must
1 9 submit proper identification and the applicable fee with the
1 10 request. Within five three business days after receiving
1 11 the request, the consumer reporting agency shall commence
1 12 the security freeze. Within ten three business days after
1 13 commencing the security freeze, the consumer reporting agency
1 14 shall send a written confirmation to the consumer of the
1 15 security freeze, a personal identification number or password,
1 16 other than the consumer's social security number, for the
1 17 consumer to use in authorizing the suspension or removal of
1 18 the security freeze, including information on how the security
1 19 freeze may be temporarily suspended.
1 20 2. a. If a consumer requests a security freeze from a
1 21 consumer reporting agency that compiles and maintains files
1 22 on a nationwide basis, the consumer may request to have the
1 23 security freeze applied to any other consumer reporting agency
1 24 that compiles and maintains files on consumers on a nationwide
1 25 basis.
1 26 b. For purposes of this subsection, "consumer reporting
1 27 agency that compiles and maintains files on a nationwide basis"
1 28 means the same as defined in 15 U.S.C. {1681a(p).
1 29 Sec. 2. Section 714G.3, subsection 1, Code 2018, is amended
1 30 to read as follows:
1 31 1. A consumer may request that a security freeze be
1 32 temporarily suspended to allow the consumer reporting agency to
1 33 release the consumer credit report for a specific time period.
1 34 The consumer reporting agency may shall develop procedures
1 35 to expedite the receipt and processing of requests which may
2 1 involve the use of telephones by first=class mail, telephone,
2 2 facsimile transmissions, the secure internet connection, secure
2 3 electronic mail, or other secure electronic media contact
2 4 method. The consumer reporting agency shall comply with
2 5 the request within three business days after receiving the
2 6 consumer's written request, or within fifteen minutes after
2 7 the consumer's request is received by the consumer reporting
2 8 agency through facsimile, the secure internet connection,
2 9 secure electronic mail, or other secure electronic contact
2 10 method chosen by the consumer reporting agency, or the use of
2 11 a telephone, during normal business hours. The consumer's
2 12 request shall include all of the following:
2 13 a. Proper identification.
2 14 b. The personal identification number or password provided
2 15 by the consumer reporting agency.
2 16 c. Explicit instructions of the specific time period
2 17 designated for suspension of the security freeze.
2 18 d. Payment of the applicable fee.
2 19 Sec. 3. Section 714G.4, unnumbered paragraph 1, Code 2018,
2 20 is amended to read as follows:
2 21 A security freeze remains in effect until the consumer
2 22 requests that the security freeze be removed. A consumer
2 23 reporting agency shall remove a security freeze within three
2 24 business days after receiving a request for removal that
2 25 includes proper identification of the consumer, and the
2 26 personal identification number or password provided by the
2 27 consumer reporting agency, and payment of the applicable fee.
2 28 Sec. 4. Section 714G.5, Code 2018, is amended to read as
2 29 follows:
2 30 714G.5 Fees prohibited.
2 31 1. A consumer reporting agency shall not charge any fee to
2 32 a consumer who is the victim of identity theft for commencing
2 33 a security freeze, temporary suspension, or removal if with
2 34 the initial security freeze request, the consumer submits a
2 35 valid copy of the police report concerning the unlawful use of
3 1 identification information by another person.
3 2 2. A consumer reporting agency may charge a fee not to
3 3 exceed ten dollars to a consumer who is not the victim of
3 4 identity theft for each security freeze, removal, or for
3 5 reissuing a personal identification number or password if the
3 6 consumer fails to retain the original number. The consumer
3 7 reporting agency may charge a fee not to exceed twelve dollars
3 8 for each temporary suspension of a security freeze.
3 9 A consumer reporting agency shall not charge a fee to a
3 10 consumer for providing any service pursuant to this chapter,
3 11 including but not limited to placing, removing, temporarily
3 12 suspending, or reinstating a security freeze.
3 13 Sec. 5. Section 714G.8A, subsection 1, paragraph d, Code
3 14 2018, is amended by striking the paragraph.
3 15 Sec. 6. Section 714G.8A, subsection 3, paragraph d, Code
3 16 2018, is amended by striking the paragraph.
3 17 Sec. 7. Section 714G.8A, subsection 5, Code 2018, is amended
3 18 to read as follows:
3 19 5. a. A consumer reporting agency may shall not charge
3 20 a reasonable fee, not to exceed five dollars, for each the
3 21 placement, or removal, or reinstatement of a protected consumer
3 22 security freeze. A consumer reporting agency may not charge
3 23 any other fee for a service performed pursuant to this section.
3 24 b. Notwithstanding paragraph "a", a fee may not be charged
3 25 by a consumer reporting agency pursuant to either of the
3 26 following:
3 27 (1) If the protected consumer's representative has obtained
3 28 a police report or affidavit of alleged identity theft under
3 29 section 715A.8 and submits a copy of the report or affidavit to
3 30 the consumer reporting agency.
3 31 (2) A request for the commencement or removal of a protected
3 32 consumer security freeze is for a protected consumer who is
3 33 under the age of sixteen years at the time of the request and
3 34 the consumer reporting agency has a consumer credit report
3 35 pertaining to the protected consumer.
4 1 Sec. 8. EFFECTIVE DATE. This Act, being deemed of immediate
4 2 importance, takes effect upon enactment.
4 3 EXPLANATION
4 4 The inclusion of this explanation does not constitute agreement with
4 5 the explanation's substance by the members of the general assembly.
4 6 This bill relates to consumer security freezes.
4 7 Current law permits a consumer to submit a request for a
4 8 security freeze via certified mail. The bill expands the
4 9 methods permitted for a consumer to submit a request for
4 10 a security freeze to allow such requests to be submitted
4 11 via first=class mail, telephone, facsimile, secure internet
4 12 connection, secure electronic mail, or other secure electronic
4 13 contact method.
4 14 The bill reduces the number of days by which a consumer
4 15 reporting agency must commence a security freeze after
4 16 receiving a request from five to three business days. The bill
4 17 also reduces the number of days by which a consumer reporting
4 18 agency must send written confirmation to a consumer after
4 19 commencing a security freeze from ten to three business days.
4 20 The bill provides that if a consumer requests a security
4 21 freeze from a consumer reporting agency that compiles and
4 22 maintains files on a nationwide basis, as defined in the bill,
4 23 the consumer may request to have the security freeze applied to
4 24 any other similar consumer reporting agency.
4 25 The bill requires consumer reporting agencies to develop
4 26 procedures to expedite the receipt and processing of security
4 27 freeze suspension requests received via the same methods
4 28 permitted for consumers to submit such requests. The bill
4 29 requires a consumer reporting agency to commence a security
4 30 freeze suspension within 15 minutes after receiving a request
4 31 through telephone, facsimile, secure internet connection,
4 32 secure electronic mail, or other secure electronic contact
4 33 method.
4 34 The bill prohibits consumer reporting agencies from charging
4 35 fees to consumers for providing any service pursuant to Code
5 1 chapter 714G, including but not limited to placing, removing,
5 2 temporarily suspending, or reinstating a security freeze. The
5 3 bill also prohibits consumer reporting agencies from charging
5 4 fees for placing or removing a protected consumer security
5 5 freeze pursuant to Code section 714G.8A. The bill removes
5 6 several references to payment of fees in Code chapter 714G.
5 7 The bill takes effect upon enactment.
LSB 5085XS (3) 87
gh/rn