HB 0037CS

CHAMBER ACTION



1The Economic Development, Trade & Banking Committee recommends
2the following:
3
4     Council/Committee Substitute
5     Remove the entire bill and insert:
6
7
A bill to be entitled
8An act relating to security of consumer credit report
9information; creating s. 501.005, F.S.; authorizing a
10consumer to place a security freeze on his or her consumer
11credit report; defining "consumer credit report security
12freeze"; providing procedures and requirements with
13respect to the placement, temporary suspension, and
14removal of a security freeze on a consumer credit report;
15authorizing a consumer to allow specified temporary access
16to his or her credit report during a security freeze;
17providing procedures with respect to such temporary
18access; providing for removal of a security freeze when a
19consumer's credit report was frozen due to a material
20misrepresentation of fact by the consumer; providing
21applicability; prohibiting a consumer credit reporting
22agency from charging a fee to place a security freeze on a
23consumer credit report; authorizing consumer credit
24reporting agencies to charge a fee to remove or
25temporarily lift a security freeze and to reissue a
26personal identification number or password; restricting
27the change of specified information in a consumer credit
28report when a security freeze is in effect; providing an
29exemption for certain persons or entities; providing for
30civil remedy; providing requirements with respect to
31written disclosure by a consumer credit reporting agency
32of procedures and consumer rights associated with a
33security freeze; providing an effective date.
34
35Be It Enacted by the Legislature of the State of Florida:
36
37     Section 1.  Section 501.005, Florida Statutes, is created
38to read:
39     501.005  Consumer credit report security freeze.--
40     (1)  A consumer may place a security freeze on his or her
41consumer credit report by making a request in writing by
42certified mail to a consumer credit reporting agency. For
43purposes of this section, "consumer credit report security
44freeze" or "security freeze" means a notice placed in a
45consumer's credit report that prohibits a consumer credit
46reporting agency from releasing the consumer's credit report or
47any information contained within the credit report to a third
48party without the express authorization of the consumer. This
49section does not prevent a consumer credit reporting agency from
50advising a third party that a security freeze is in effect with
51respect to the consumer's credit report.
52     (2)  A consumer credit reporting agency shall place a
53security freeze on a consumer's credit report no later than 5
54business days after receiving a request from the consumer.
55     (3)  The consumer credit reporting agency shall send a
56written confirmation of the security freeze to the consumer
57within 5 business days after instituting the security freeze and
58shall provide the consumer with a unique personal identification
59number or password to be used by the consumer when providing
60authorization for the limited release of his or her credit
61report for a designated period of time during the security
62freeze as provided in subsection (4).
63     (4)  A consumer may allow his or her credit report to be
64accessed for a designated period of time while a security freeze
65is in effect by contacting the consumer credit reporting agency
66and requesting that the freeze be temporarily lifted. The
67consumer must provide the following information to the consumer
68credit reporting agency as part of the request:
69     (a)  Proper identification as determined by the consumer
70credit reporting agency.
71     (b)  The unique personal identification number or password
72provided by the consumer credit reporting agency pursuant to
73subsection (3).
74     (c)  Information specifying the period of time for which
75the report shall be made available.
76     (5)  A consumer credit reporting agency that receives a
77request from a consumer to temporarily lift a freeze on a credit
78report pursuant to subsection (4) shall comply with the request
79no later than 3 business days after receiving the request.
80     (6)  A consumer credit reporting agency shall use
81telephonic communication or any form of secure electronic media
82to receive and process a request from a consumer pursuant to
83subsection (4) with the goal of processing a request within 15
84minutes after receipt of such request.
85     (7)  A consumer credit reporting agency shall temporarily
86lift or remove a security freeze placed on a consumer's credit
87report only in the following instances:
88     (a)  Upon consumer request, pursuant to subsection (4) or
89subsection (10).
90     (b)  If the consumer's credit report was frozen due to a
91material misrepresentation of fact by the consumer. If a
92consumer credit reporting agency intends to remove a security
93freeze on a consumer's credit report pursuant to this paragraph,
94the consumer credit reporting agency shall notify the consumer
95in writing prior to removing the security freeze.
96     (8)  A third party requesting access to a consumer credit
97report on which a security freeze is in effect in connection
98with an application for credit or other permissible use may
99treat the application as incomplete if the consumer has not
100authorized a temporary lifting of the security freeze for the
101period of time during which the request is made.
102     (9)  If a consumer requests a security freeze, the consumer
103credit reporting agency shall disclose to the consumer all
104information relevant to the process of instituting, temporarily
105lifting, and removing a security freeze and shall include the
106disclosure required by subsection (16).
107     (10)  A security freeze shall remain in place until the
108consumer requests that it be removed. A consumer credit
109reporting agency shall remove a security freeze within 3
110business days after receiving a request for removal from the
111consumer, who, upon making the request for removal, must provide
112the following:
113     (a)  Proper identification as determined by the consumer
114credit reporting agency.
115     (b)  The unique personal identification number or password
116provided by the credit reporting agency pursuant to subsection
117(3).
118     (11)  The provisions of this section do not apply to the
119use of a consumer credit report by the following persons or for
120the following reasons:
121     (a)  A person to whom the consumer owes a financial
122obligation or a subsidiary, affiliate, or agent of the person,
123or an assignee of a financial obligation owed by the consumer to
124the person, or a prospective assignee of a financial obligation
125owed by the consumer to the person in conjunction with the
126proposed purchase of the financial obligation, with which the
127consumer has or had prior to assignment an account or contract,
128including a demand deposit account, or to whom the consumer
129issued a negotiable instrument, for the purposes of reviewing
130the account or collecting the financial obligation owed for the
131account, contract, or negotiable instrument. For purposes of
132this paragraph, "reviewing the account" includes activities
133related to account maintenance, monitoring, credit line
134increases, and account upgrades and enhancements.
135     (b)  A subsidiary, affiliate, agent, assignee, or
136prospective assignee of a person to whom access has been granted
137under this section for purposes of facilitating the extension of
138credit or other permissible use.
139     (c)  A state agency acting within its lawful investigative
140or regulatory authority.
141     (d)  A state or local law enforcement agency acting to
142investigate a crime or conducting a criminal background check.
143     (e)  Any person administering a credit file monitoring
144subscription service to which the consumer has subscribed.
145     (f)  Any person for the purpose of providing a consumer
146with a copy of the consumer's credit report upon the consumer's
147request.
148     (g)  Pursuant to a court order lawfully entered.
149     (h)  The use of credit information for the purposes of
150prescreening as provided for by the federal Fair Credit
151Reporting Act.
152     (12)  A consumer credit reporting agency shall not charge a
153consumer a fee to place a security freeze on the consumer's
154credit report. A consumer credit reporting agency may charge a
155reasonable fee, not to exceed $5, to a consumer who elects to
156remove or temporarily lift a security freeze on his or her
157consumer credit report. A consumer may be charged a reasonable
158fee, not to exceed $5, if the consumer fails to retain the
159original personal identification number or password provided by
160the consumer credit reporting agency, and the agency must
161reissue the personal identification number or password or
162provide a new personal identification number or password to the
163consumer.
164     (13)  If a security freeze is in effect, a consumer credit
165reporting agency shall not change any of the following official
166information in a consumer credit report without sending a
167written confirmation of the change to the consumer within 30
168days after the change is posted to the consumer's file:
169     (a)  Name.
170     (b)  Address.
171     (c)  Date of birth.
172     (d)  Social security number.
173
174Written confirmation is not required for technical corrections
175of a consumer's official information, including name and street
176abbreviations, complete spellings, or transposition of numbers
177or letters. In the case of an address change, the written
178confirmation shall be sent to both the new address and the
179former address.
180     (14)  The provisions of this section do not apply to the
181following entities:
182     (a)  A check services company, which issues authorizations
183for the purpose of approving or processing negotiable
184instruments, electronic funds transfers, or similar methods of
185payment.
186     (b)  A demand deposit account information service company,
187which issues reports regarding account closures due to fraud,
188substantial overdrafts, automatic teller machine abuse, or
189similar negative information regarding a consumer to inquiring
190banks or other financial institutions for use only in reviewing
191a consumer request for a demand deposit account at the inquiring
192bank or financial institution, as defined in s. 655.005(1)(g) or
193(h).
194     (c)  A consumer credit reporting agency that acts only as a
195reseller of credit information by assembling and merging
196information contained in the database of another consumer credit
197reporting agency or multiple consumer credit reporting agencies
198and does not maintain a permanent database of credit information
199from which new consumer credit reports are produced. However, a
200consumer credit reporting agency shall honor any security freeze
201placed on a consumer credit report by another consumer credit
202reporting agency.
203     (15)  In addition to any other penalties or remedies
204provided under law, a person who is aggrieved by a knowing or
205willful violation of the provisions of this section may bring a
206civil action in any court of competent jurisdiction against any
207person or entity, including a consumer credit reporting agency,
208for recovery of actual and consequential damages, court costs,
209and attorney's fees.
210     (16)  Any written disclosure by a consumer credit reporting
211agency to any consumer pursuant to this section shall include a
212written summary of all rights the consumer has under this
213section, and, in the case of a consumer credit reporting agency
214which compiles and maintains consumer credit reports on a
215nationwide basis, a toll-free telephone number which the
216consumer can use to communicate with the consumer credit
217reporting agency. The written summary of rights required under
218this section is sufficient if it is in substantially the
219following form:
220
221     You have a right to place a "security freeze" on your
222credit report, which will prohibit a consumer credit reporting
223agency from releasing any information in your credit report
224without your express authorization. A security freeze must be
225requested in writing by certified mail to a consumer credit
226reporting agency. The security freeze is designed to prevent
227credit, loans, and services from being approved in your name
228without your consent. However, you should be aware that using a
229security freeze to control access to the personal and financial
230information in your credit report may delay, interfere with, or
231prohibit the timely approval of any subsequent request or
232application you make regarding a new loan, credit, mortgage,
233insurance, government services or payments, rental housing,
234employment, investment, license, cellular phone, utilities,
235digital signature, Internet credit card transaction, or other
236services, including an extension of credit at point of sale.
237When you place a security freeze on your credit report, you will
238be provided a personal identification number or password to use
239if you choose to remove the freeze on your credit report or
240authorize the release of your credit report for a designated
241period of time after the security freeze is in place. To provide
242that authorization, you must contact the consumer credit
243reporting agency and provide all of the following:
244     (1)  The personal identification number or password.
245     (2)  Proper identification to verify your identity.
246     (3)  Information specifying the period of time for which
247the report shall be made available.
248
249     A consumer credit reporting agency must authorize the
250release of your credit report no later than 3 business days
251after receiving the above information.
252     A security freeze does not apply to a person or entity, or
253its affiliates, or collection agencies acting on behalf of the
254person or entity, with which you have an existing account, that
255requests information in your credit report for the purposes of
256reviewing or collecting the account. Reviewing the account
257includes activities related to account maintenance, monitoring,
258credit line increases, and account upgrades and enhancements.
259     You have the right to bring a civil action against anyone,
260including a consumer credit reporting agency, who fails to
261comply with the provisions of s. 501.005, Florida Statutes,
262which governs the placing of a consumer credit report security
263freeze on your consumer credit report. This includes the right
264to bring a civil action against any person for recovery of your
265actual and consequential damages, court costs, and attorney's
266fees caused by a knowing or willful violation of the law.
267     Section 2.  This act shall take effect July 1, 2006.


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