HB 37

1
A bill to be entitled
2An act relating to security of consumer credit report
3information; creating s. 501.005, F.S.; authorizing a
4consumer to place a security freeze on his or her credit
5report; defining "consumer credit report security freeze";
6providing procedures and requirements with respect to the
7placement, temporary suspension, and removal of a security
8freeze on a consumer credit report; authorizing a consumer
9to allow specified temporary access to his or her credit
10report during a security freeze; providing procedures with
11respect to such temporary access; providing for removal of
12a security freeze when a consumer's credit report was
13frozen due to a material misrepresentation of fact by the
14consumer; providing applicability; authorizing consumer
15credit reporting agencies to charge a fee to initiate,
16remove, or temporarily lift a security freeze; disallowing
17such fee for victims of identity theft; restricting the
18change of specified information in a consumer credit
19report when a security freeze is in effect; specifying
20applicability with respect to certain consumer credit
21reporting agencies; specifying entities that are exempt
22from placing a security freeze on a consumer credit
23report; providing for civil remedy; providing requirements
24with respect to written disclosure by a consumer credit
25reporting agency of procedures and consumer rights
26associated with a security freeze; providing an effective
27date.
28
29Be It Enacted by the Legislature of the State of Florida:
30
31     Section 1.  Section 501.005, Florida Statutes, is created
32to read:
33     501.005  Consumer credit report security freeze.--
34     (1)  A consumer may elect to place a security freeze on his
35or her credit report by making a request in writing by certified
36mail to a consumer credit reporting agency. For purposes of this
37section, "consumer credit report security freeze" or "security
38freeze" means a notice placed in a consumer's credit report, at
39the request of the consumer and subject to the exceptions
40specified in this section, that prohibits the consumer credit
41reporting agency from releasing the consumer's credit report or
42any information contained within the credit report without the
43express authorization of the consumer. When a security freeze is
44in place, information from a consumer's credit report shall not
45be released to a third party without prior express authorization
46from the consumer. This act does not prevent a consumer credit
47reporting agency from advising a third party that a security
48freeze is in effect with respect to the consumer's credit
49report.
50     (2)  A consumer credit reporting agency shall place a
51security freeze on a consumer's credit report no later than 5
52business days after receiving a written request from the
53consumer.
54     (3)  The consumer credit reporting agency shall send a
55written confirmation of the security freeze to the consumer
56within 10 business days of instituting the security freeze and
57shall provide the consumer with a unique personal identification
58number or password to be used by the consumer when providing
59authorization for the limited release of his or her credit
60report to a specific party during the security freeze or for a
61designated period of time during the security freeze as provided
62in subsection (4).
63     (4)  If the consumer wishes to allow his or her credit
64report to be accessed by a specific party or for a designated
65period of time while a security freeze is in effect, he or she
66shall contact the consumer credit reporting agency, request that
67the freeze be temporarily lifted, and provide the following:
68     (a)  Proper identification as determined by the consumer
69credit reporting agency.
70     (b)  The unique personal identification number or password
71provided by the credit reporting agency pursuant to subsection
72(3).
73     (c)  The proper information regarding the third party who
74is to receive the credit report or the period of time for which
75the report shall be made temporarily available to those
76authorized to access the credit report.
77     (5)  A consumer credit reporting agency that receives a
78request from a consumer to temporarily lift a freeze on a credit
79report pursuant to subsection (4) shall comply with the request
80no later than 3 business days after receiving the request.
81     (6)  A consumer credit reporting agency may develop
82procedures involving the use of telephone, fax, the Internet, or
83other electronic media to receive and process a request from a
84consumer to temporarily lift a freeze on a credit report
85pursuant to subsection (4) in an expedited manner.
86     (7)  A consumer credit reporting agency shall remove or
87temporarily lift a security freeze placed on a consumer's credit
88report only in the following instances:
89     (a)  Upon consumer request, pursuant to subsection (4) or
90subsection (10).
91     (b)  If the consumer's credit report was frozen due to a
92material misrepresentation of fact by the consumer.
93
94If a consumer credit reporting agency intends to remove a
95security freeze on a consumer's credit report pursuant to this
96subsection, the consumer credit reporting agency shall notify
97the consumer in writing prior to removing the security freeze.
98     (8)  A third party requesting access to a consumer credit
99report on which a security freeze is in effect in connection
100with an application for credit or any other use may treat the
101application as incomplete if the consumer has not authorized a
102temporary lifting of the security freeze for the specific third
103party requesting access or for the period of time during which
104the request is made.
105     (9)  If a consumer requests a security freeze, the consumer
106credit reporting agency shall disclose to the consumer all
107information relevant to the process of instituting a security
108freeze and the process for temporarily lifting the security
109freeze to allow access to information from the consumer's credit
110report by a specific party or for a limited period of time while
111the security freeze is in effect.
112     (10)  A security freeze shall remain in place until the
113consumer requests that the security freeze be removed. A
114consumer credit reporting agency shall remove a security freeze
115within 3 business days of receiving a request for removal from
116the consumer, who, upon making the request for removal, must
117provide the following:
118     (a)  Proper identification as determined by the consumer
119credit reporting agency.
120     (b)  The unique personal identification number or password
121provided by the credit reporting agency pursuant to subsection
122(3).
123     (11)  A consumer credit reporting agency must require
124proper identification of any person making a request to place or
125remove a security freeze.
126     (12)  The provisions of this section do not apply to the
127use of a consumer credit report by the following persons or
128entities or for the following reasons:
129     (a)  A person or entity, or a subsidiary, affiliate, or
130agent of the person or entity, or an assignee of a financial
131obligation owed by the consumer to the person or entity, or a
132prospective assignee of a financial obligation owed by the
133consumer to the person or entity in conjunction with the
134proposed purchase of the financial obligation, with which the
135consumer has or had prior to assignment an account or contract,
136including a demand deposit account, or to whom the consumer
137issued a negotiable instrument, for the purposes of reviewing
138the account or collecting the financial obligation owed for the
139account, contract, or negotiable instrument. For purposes of
140this paragraph, "reviewing the account" includes activities
141related to account maintenance, monitoring, credit line
142increases, and account upgrades and enhancements.
143     (b)  A subsidiary, affiliate, agent, assignee, or
144prospective assignee of a person to whom access has been granted
145for purposes of facilitating the extension of credit or other
146permissible use.
147     (c)  Any state or local agency, law enforcement agency,
148trial court, or private collection agency acting pursuant to a
149court order, warrant, or subpoena.
150     (d)  A child support agency acting pursuant to Title IV-D
151of the Social Security Act.
152     (e)  The Florida Department of Health or its agents or
153assigns acting to investigate Medicaid fraud.
154     (f)  The Department of Financial Services or its agents or
155assigns acting to investigate or collect delinquent taxes or
156unpaid court orders or to fulfill any of its other statutory
157responsibilities.
158     (g)  The use of credit information for the purposes of
159prescreening as provided for by the federal Fair Credit
160Reporting Act.
161     (13)  Nothing in this act shall prevent a consumer credit
162reporting agency from charging a reasonable fee to a consumer
163who elects to place, remove, or temporarily lift a security
164freeze on a consumer credit report, except that a consumer
165credit reporting agency may not charge a fee to a victim of
166identity theft who has submitted a valid police report, or a
167valid investigative report with the Department of Highway Safety
168and Motor Vehicles, that alleges such a violation.
169     (14)  If a security freeze is in effect, a consumer credit
170reporting agency shall not change any of the following official
171information in a consumer credit report without sending a
172written confirmation of the change to the consumer within 30
173days of the change being posted to the consumer's file:
174     (a)  Name.
175     (b)  Address.
176     (c)  Date of birth.
177     (d)  Social security number.
178
179Written confirmation is not required for technical modifications
180of a consumer's official information, including name and street
181abbreviations, complete spellings, or transposition of numbers
182or letters. In the case of an address change, the written
183confirmation shall be sent to both the new address and to the
184former address.
185     (15)  The provisions of this section do not apply to a
186consumer credit reporting agency that acts only as a reseller of
187credit information by assembling and merging information
188contained in the database of another consumer credit reporting
189agency or multiple consumer credit reporting agencies and does
190not maintain a permanent database of credit information from
191which new consumer credit reports are produced. However, a
192consumer credit reporting agency shall honor any security freeze
193placed on a consumer credit report by another consumer credit
194reporting agency.
195     (16)  The following entities are not required to place a
196security freeze on a consumer credit report:
197     (a)  A check services company, which issues authorizations
198for the purpose of approving or processing negotiable
199instruments, electronic funds transfers, or similar methods of
200payment.
201     (b)  A demand deposit account information service company,
202which issues reports regarding account closures due to fraud,
203substantial overdrafts, automatic teller machine abuse, or
204similar negative information regarding a consumer to inquiring
205banks or other financial institutions for use only in reviewing
206a consumer request for a demand deposit account at the inquiring
207bank or financial institution.
208     (17)  In addition to any other penalties or remedies
209provided under law, a person who is aggrieved by violation of
210the provisions of this section may bring a civil action in any
211court of competent jurisdiction against any person or entity,
212including a consumer credit reporting agency, for recovery of
213actual and consequential damages, court costs, and attorney's
214fees. No provision in this section shall be construed to limit
215any right or remedy provided under law.
216     (18)  Any written disclosure by a consumer credit reporting
217agency to any consumer pursuant to this section shall include a
218written summary of all rights the consumer has under this act,
219and, in the case of a consumer credit reporting agency which
220compiles and maintains consumer credit reports on a nationwide
221basis, a toll-free telephone number which the consumer can use
222to communicate with the consumer credit reporting agency. The
223written summary of rights required under this section is
224sufficient if it is in substantially the following form:
225
226     You have a right to place a "security freeze" on your
227credit report, which will prohibit a consumer credit reporting
228agency from releasing any information in your credit report
229without your express authorization. A security freeze must be
230requested in writing by certified mail. The security freeze is
231designed to prevent credit, loans, and services from being
232approved in your name without your consent. However, you should
233be aware that using a security freeze to take control over who
234gets access to the personal and financial information in your
235credit report may delay, interfere with, or prohibit the timely
236approval of any subsequent request or application you make
237regarding a new loan, credit, mortgage, insurance, government
238services or payments, rental housing, employment, investment,
239license, cellular phone, utilities, digital signature, Internet
240credit card transaction, or other services, including an
241extension of credit at point of sale. When you place a security
242freeze on your credit report, you will be provided a personal
243identification number or password to use if you choose to remove
244the freeze on your credit report or authorize the release of
245your credit report to a specific party or for a designated
246period of time after the security freeze is in place. To provide
247that authorization, you must contact the consumer credit
248reporting agency and provide all of the following:
249     (1)  The personal identification number or password.
250     (2)  Proper identification to verify your identity.
251     (3)  The proper information regarding the third party who
252is to receive the credit report or the period of time for which
253the report shall be made available.
254
255     A consumer credit reporting agency must authorize the
256release of your credit report no later than 3 business days
257after receiving the above information.
258     A security freeze does not apply to a person or entity, or
259its affiliates, or collection agencies acting on behalf of the
260person or entity, with which you have an existing account, that
261requests information in your credit report for the purposes of
262reviewing or collecting the account. Reviewing the account
263includes activities related to account maintenance, monitoring,
264credit line increases, and account upgrades and enhancements.
265     You have the right to bring a civil action against anyone,
266including a consumer credit reporting agency, who fails to
267comply with the provisions of section 501.005, Florida Statutes,
268which governs the placing of a consumer credit report security
269freeze on your consumer credit report. This includes the right
270to bring a civil action against anyone who improperly obtains
271access to your consumer credit report or information contained
272within the report or who knowingly or willfully misuses data or
273information contained within the report during the period of
274time in which a requested security freeze was in effect or
275should have been in effect.
276     Section 2.  This act shall take effect July 1, 2006.


CODING: Words stricken are deletions; words underlined are additions.